1405 Hotel, LLC v. Colorado Economic Development Commission

2015 COA 127, 370 P.3d 309, 2015 Colo. App. LEXIS 1400, 2015 WL 5259813
CourtColorado Court of Appeals
DecidedSeptember 10, 2015
DocketCourt of Appeals 14CA1613
StatusPublished
Cited by3 cases

This text of 2015 COA 127 (1405 Hotel, LLC v. Colorado Economic Development Commission) is published on Counsel Stack Legal Research, covering Colorado Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
1405 Hotel, LLC v. Colorado Economic Development Commission, 2015 COA 127, 370 P.3d 309, 2015 Colo. App. LEXIS 1400, 2015 WL 5259813 (Colo. Ct. App. 2015).

Opinion

Opinion by

JUDGE TAUBMAN '

1 Plaintiffs, eleven hotels along Colorado's Front Range, 1 (collectively the Hotels) *311 appeal the trial court's order dismissing their complaint against the Colorado Economic Development Commission (CEDC) and the City of Aurora (Aurora). The Hotels allege that the trial court improperly refused to review the CEDC's decision to award Aurora an $81 million tax subsidy pursuant to its authority under the Colorado Regional Tourism Act (the RTA). Because we agree with the trial court's conclusion that the Hotels lack standing to challenge the CEDC's decision, and because we do not reach their constitutional claim, we affirm. >

L Backgrofind

A, The Regional Tourism Act

2 In 2009, the General Assembly enacted the RTA to provide a mechanism through which as many as two local governments per year can obtain sales tax increment financing for the development of large-scale regional tourism projects. §§ 24-46-801 to -310, C.R.8.2014. The law permits successful applicants to establish regional tourism zones or authorities within their borders and allows them to collect a portion of the revenue derived from state sales taxes within those zones,. See § 24-46-3808, C.R.S.2014 (defining, among other terms, "regional tourism authority," "regional tourism zone," and "state sales tax increment revenue"). The revenue is then used to fund the development of a specific large-scale tourism project within the zone. See § 24-46-302(1)(c), C.R.S. 2014 ("Colorado is in competition with other states to attract large-scale regional tourism projects."); § 24-46-302(1)(d) ("It is in the interest of [Coloradans] to provide a finane-ing mechanism for attracting, constructing, and operating large-scale regional tourism projects that will attract significant investment and revenue from outside the state?)t

13 The RTA prescribes a detailed application process which requires applicants to submit, among other documents, maps of the proposed project area, § 24-46-8304(2)(a), C.R.S.2014; a narrative description of the project, including cost estimates, id. at (2)(c); an economic analysis detailing the project's impact on the local economy, id. at (2)(d); and information regarding the project's financing, id, at (2)(e) to (h). The RTA also requires applicants to provide an economic study from a third-party analyst selected by the Office of State Planning:-and Budgeting. Id. at (Q)). The third party reviews the data provided by the applicants to ensure the application's general accuracy. Id, at @@(I) to (IV). .. . 2. +

T4 Consideration of an RTA application is a two-step process,. First, before. approving a project, the CEDC must make several findings: (1) the project is extraordinary and unique in nature and reasonably anticipated to contribute significantly to economic development and tourism in the state and region where the project is located; (2) the project is reasonably anticipated to result in a substantial increase in out-of-state tourism; (8) a significant portion of the sales tax revenue generated by the project is reasonably anticipated to be attributable to transactions with nonresidents of .the state; 2 and (4) in the absence of the award, the project is unlikely to be developed within the foreseeable future. Id. at (B8)(a) to (d).

T5 Second, section 24-46-8058), C.R.S, 2014, requires the CEDC to adopt a resolution specifying (1) the local government that has been approved to undertake the project; (2) the area of the regional tourism zone; (8) whether the CEDC has authorized the creation of a regional tourism authority; and (4) the percentage of state sales tax increment revenue that will be dedicated to the regional tourism project. |

B. Aurora's RTA Application

T6 For the purposes of this appeal, the parties do not dispute the following facts as *312 set forth in the Hotels' second amended complaint.

T7 During the RTA's inaugural application cycle in 2011, Aurora submitted a proposal requesting a tax increment subsidy to support the building of a $824 million hotel and conference center with 1500 rooms and approximately 350,000 to 400,000 square feet of meeting space to be developed by the Gay-lord Entertainment Company (the Gaylord Project). The Gaylord Project's application presented a detailed description and economic analysis, including a third-party analyst's conclusion that the project would likely not be developed but for RTA funding.

¶ 8 In May 2012, the CEDC announced its intention to approve the Gaylord Project's requested $81 million tax increment subsidy, pursuant to the RTA, so long as Aurora satisfied certain conditions within 120 days. 3 However, the CEDC did not adopt a resolution memorializing the award at that time.

9 Later that same month, Gaylord Entertainment announced its decision to withdraw from the Gaylord Project. The company further announced that it was selling its brand name and management rights to Marriott International, In October 2012, Gaylord Entertainment announced that it had merged with a wholly owned subsidiary called Ryman Hospitalities,

1 10 One year later, during the May 2018 CEDC meeting, Aurora announced that RIDA Development Corp. (RIDA) had agreed to develop a similar hotel and conference center, and that Marriott International would operate the project (the RIDA/Mar-riott Project). However, Aurora did not submit a new RTA application.

{11 In July 2013, the Hotels, joined by additional hotels, the Colorado Hotel and Lodging Association, and the Metro Denver Hotel Association, submitted a petition to the CEDC requesting that it require Aurora to submit a new RTA application for the RIDA/Marriott Project 4 Specifically, it claimed that material changes to the proposed project, as well as the change in the developer from Gaylord to RIDA, necessitated a new application, The petition also requested that the CEDC hold a public hearing to address these concerns and alleged that the CEDC's May 2012 preliminary approval of the Gaylord Project had expired on its own terms.

12 At its regularly scheduled July 2013 meeting, the CEDC heard the petitioners' concerns and notified them that it would take the petition under advisement. In August 20183, the Attorney General wrote to petitioners, denying their petition on the ground that it was untimely under section 24-4-108(4), C.R.98.2014, of the State Administrative Procedure Act (APA), and C.R.C.P. 106(b). The Attorney General asserted that the CEDC's May 2012 preliminary approval of the Gay-lord Project constituted final agency action, giving petitioners either thirty-five days from that date to challenge the action pursuant to section 24-46-106(4) or, in the alternative, twenty-eight days to petition for judicial review under C.RC.P. 106(b). Because the petition was untimely under either deadline, the Attorney General denied it on behalf of the CEDC. -

1 13 In October 2013, the CEDC adopted a final resolution approving Aurora's RTA application for the RIDA/Marriott Project.

C. This Action

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1405 Hotel, LLC v. Colorado Economic Development Commission
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Bluebook (online)
2015 COA 127, 370 P.3d 309, 2015 Colo. App. LEXIS 1400, 2015 WL 5259813, Counsel Stack Legal Research, https://law.counselstack.com/opinion/1405-hotel-llc-v-colorado-economic-development-commission-coloctapp-2015.