Estes Park Chamber of Commerce v. Town of Estes Park

199 P.3d 11, 2007 Colo. App. LEXIS 1302, 2007 WL 2003094
CourtColorado Court of Appeals
DecidedJuly 12, 2007
Docket06CA0953
StatusPublished
Cited by3 cases

This text of 199 P.3d 11 (Estes Park Chamber of Commerce v. Town of Estes Park) 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
Estes Park Chamber of Commerce v. Town of Estes Park, 199 P.3d 11, 2007 Colo. App. LEXIS 1302, 2007 WL 2003094 (Colo. Ct. App. 2007).

Opinion

Opinion by

Chief Judge DAVIDSON.

Plaintiffs, Estes Park Chamber of Commerce, Norm and Dee Pritchard (doing business as Black Dog Inn), and Baldpate Inn, Ltd., brought a declaratory judgment action against defendant, Town of Estes Park, challenging, inter alia, the Town's authority to conduct tourism-related marketing and advertising. On this claim, the trial court granted summary judgment in favor of the Town, and, on appeal, plaintiffs contend that this judgment was error. We reverse and remand for further proceedings.

Estes Park is a statutory town and has long been a tourist destination. According to the Town, it has historically been involved in tourism-related advertising, marketing, sales, special events promotion and planning, and providing special events and conference service activities. The Town established three departments to carry out these functions: the Advertising Department, the Special Events Department, and the Conference Services Department.

Since the early 1950s, the Town also contracted with the Estes Park Chamber of Commerce, a private nonprofit corporation, to staff and operate the Town Visitor Center and, according to the Chamber, to provide marketing, advertising, and promotional activities associated with the commercial enterprise. The Town paid the Chamber $4,000 per month to answer the Town's 1-800 informational phone number, and also permitted the Chamber to lease the Visitor Center for an annual rent of $1.

In 2003, the Town combined and expanded the services provided by its three tourist, focused departments by creating a single new department, the Business Development Department. The Town later changed the name of the Business Development Department to the Estes Park Convention and Visitors Bureau (CVB) and also created a Marketing Advisory Board to implement the Town's new marketing strategy. In the same time period, the Town decided not to renew its contracts with the Chamber (including the Chamber's lease of the Visitor Center), and instead decided that the CVB would take over operations of the Visitor Center, which it did in late 2004.

Shortly before the Chamber was forced to vacate the Visitor Center, the Chamber and several business owners brought this action against the Town, seeking declaratory judgments determining that: (1) the most recent lease between the Chamber and the Town did not extinguish a previous, longer lease; *13 (2) the Town's new and expanded tourism-promotion activities exceeded its statutory grant of authority to appropriate moneys for the purpose of "advertising" the Town; and (3) the Town's collection of Tax Equivalency Fees from "out-of-town" members was the functional equivalent of a tax and therefore invalid. They also sought a permanent injunction to prevent the Town from forcing the Chamber to vacate the Visitor Center.

The trial court resolved issues involving the Chamber's lease and tenancy in favor of the Town. The parties then filed cross-motions for summary judgment on the remaining issues. The trial court granted summary judgment in favor of the Town on the issue of the formation and operation of the CVB, but ruled in plaintiffs' favor on the Tax Equivalency Fees issue. Regarding the CVB, the court determined that the Town's funding of "advertising and marketing" was authorized by § 81-15-901(1)(b), C.R.S.2006, and determined that the Town did so in a properly administrative manner. Only plaintiffs appeal.

I. Standard of Review

Summary judgment is appropriate when there is no genuine issue as to any material fact and the moving party is entitled to judgment as a matter of law. C.R.C.P. 56(c); Compass Ins. Co. v. City of Littleton, 984 P.2d 606, 613 (Colo.1999). We review a grant of summary judgment de novo. Cyprus Amax Minerals Co. v. Lexington Ins. Co., 74 P.3d 294, 298-99 (Colo.2003).

IL. In Addition to "Advertising," Does § 81-15-901(1)(b) Authorize the Town to Conduct "Marketing" Activities?

Plaintiffs contend that the trial court erred in determining that the Town's broad-based marketing and referral enterprises, described by the court as the Town's "advertising and marketing," were authorized by § 31-15-901(1)(b), the provision that allows statutory towns to appropriate moneys for "advertising." We agree with plaintiffs that, as a statutory town, the Town was not authorized to appropriate monies for any activities that were not "advertising" or "advertising-related."

Statutory municipalities possess only those powers that are expressly conferred by statute or exist by necessary implication. City of Sheridan v. City of Englewood, 199 Colo. 348, 350, 609 P.2d 108, 109 (1980). In this way, statutory municipalities are unlike home rule municipalities, which have plenary legislative authority over local and municipal matters as guaranteed by article XX of the Colorado Constitution. See City of Aurora v. Bogue, 176 Colo. 198, 200, 489 P.2d 1295, 1296 (1971). Thus, statutes granting such powers must be strictly construed, and any doubt as to a statutory municipality's power must be resolved against it. City of Aurora v. Bogue, supra, 176 Colo. at 200-01, 489 P.2d at 1296.

Section 31-15-901(1)(b) provides, in relevant part: "The governing body of each municipality has the power ... [tlo appropriate moneys for the purpose of advertising the business, social, and educational advantages, the natural resources, and the scenic attractions of such municipality" (emphasis added).

The word, "advertising," as used in § 31-15-901(1)(b), is not specifically defined in the statute. However, its common definition is the nonpersonal communication of information to the public to promote a product, service, or idea using a form of media. See William F. Arens & Courtland Bovee, Contemporary Advertising 6 (5th ed.1994) ("advertising" is the "nonpersonal communication of information usually paid for and usually persuasive in nature, about products, services, or ideas by identified sponsors through various media"); see also Merriam-Webster's Collegiate Dictionary 19 (11th ed.2004) (advertising is "the action of calling something to the attention of the public especially by paid announcements"); Black's Law Dictionary 59 (8th ed.2004) (advertising is "1. The action of drawing the public's attention to something to promote its sale. 2. The business of producing and cireulating advertisements.").

"Marketing," however, is a broader term. It is generally described as the process of planning, promotion, and distribution of products or services to meet customers' needs. See Boone & Kurtz, Contemporary *14

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199 P.3d 11, 2007 Colo. App. LEXIS 1302, 2007 WL 2003094, Counsel Stack Legal Research, https://law.counselstack.com/opinion/estes-park-chamber-of-commerce-v-town-of-estes-park-coloctapp-2007.