M.A.K. Investment Group v. City of Glendale

889 F.3d 1173
CourtCourt of Appeals for the Tenth Circuit
DecidedMay 14, 2018
Docket16-1492
StatusPublished

This text of 889 F.3d 1173 (M.A.K. Investment Group v. City of Glendale) is published on Counsel Stack Legal Research, covering Court of Appeals for the Tenth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
M.A.K. Investment Group v. City of Glendale, 889 F.3d 1173 (10th Cir. 2018).

Opinion

TYMKOVICH, Chief Judge.

M.A.K. Investment Group, LLC owns several parcels of property in Glendale, Colorado. The City of Glendale adopted a resolution declaring several of M.A.K.'s parcels "blighted" under state law. Glendale never notified M.A.K. of its resolution or the legal consequences flowing from it. In fact, the blight resolution began a seven-year window in which the City could begin condemnation proceedings against M.A.K.'s property. It also started the clock on a thirty-day window in which M.A.K. had a right to seek judicial review of the blight resolution under state law. Receiving no notice, M.A.K. did not timely seek review.

M.A.K. argues Colorado's Urban Renewal statute-both on its face and as-applied to M.A.K.-violates due process because it does not require municipalities *1176 to notify property owners about (1) an adverse blight determination, or (2) the thirty days owners have to seek review. We conclude the statute is unconstitutional as applied to M.A.K. because M.A.K. did not receive notice that Glendale found its property blighted. Since we hold the statute violated due process as applied to M.A.K., we need not decide whether the statute is unconstitutional on its face. 1 As for M.A.K.'s second argument, we hold that due process did not require Glendale to inform M.A.K. about the thirty-day review window.

I. Background

We begin by describing the relevant statutory framework.

A. Colorado's urban renewal statute

Colorado's Urban Renewal statute declares eliminating "blighted" areas to be a public use for which municipalities can use their power of eminent domain. Colo. Rev. Stat. § 31-25-102 . The law enables municipalities to eventually transfer blighted private property to other private parties or public entities for redevelopment. After a municipality determines an area is blighted, it can begin condemnation proceedings against the blighted property at any time for seven years following the blight determination. § 31-25-105.5(2)(a)(I). The blight determination is therefore not a complete taking in the constitutional sense, but it slates the property for possible condemnation in the future.

To label a property blighted, municipalities must meet certain statutory requirements. 2 Municipalities must find that the property meets "at least five" of the eleven statutory blight factors. See § 31-25-105.5(5)(a). 3 Those findings must be made *1177 at a public hearing. § 31-25-107(1)(a), (3)(a). And the findings must be based on "reasonably current information obtained at the time the blight determination is made." § 31-25-105.5(2)(a)(I).

The Act allows property owners to challenge a city's blight determination. "Any owner of property located within the urban renewal area may challenge the determination of blight made by the governing body ... by filing, not later than thirty days after the date the determination of blight is made, a civil action in district court for the county in which the property is located ...." § 31-25-105.5(2)(b). The civil action is "for judicial review of the exercise of discretion on the part of the governing body in making the determination of blight," and "the governing body shall have the burden of proving that, in making its determination of blight, it has neither exceeded its jurisdiction nor abused its discretion." Id.

As for notice, the statute requires a city to notify property owners in two instances: (1) when the city begins a study regarding blight involving their properties, and (2) when the city will hold a hearing regarding its intention to acquire property for public or private redevelopment. See § 31-25-107(1)(b), (3)(b).

But when it comes to the results of these blight hearings, the notice requirement depends on whether the city found the property at issue blighted or not. Strangely enough, Colorado's statute requires a city to mail notice to those whose property it does not find blighted, but does not require a city to notify those whose property it does find blighted. See § 31-25-107(1)(b). The statute also takes care to note that "[n]otwithstanding any other provision of law, any determination made by the governing body ... shall be deemed a legislative determination and shall not be deemed a quasi-judicial determination." § 31-25-105.5(2)(c). This has consequences we will discuss below.

B. The blight determination

According to its complaint, M.A.K. owns several parcels of real property in Glendale, Colorado. Seeking to redevelop its property, M.A.K. began working with the city of Glendale on a private redevelopment plan.

In 2013, the City of Glendale embarked on a "Riverwalk Urban Renewal Plan." The Plan entailed declaring a group of properties blighted under the Urban Renewal Law, allowing the City to condemn the properties and commence their private redevelopment. M.A.K.'s property was among the properties affected by the Plan. In April of the same year, Glendale notified M.A.K. it was commencing a study on whether an area that included M.A.K.'s property was blighted. The notice explained that Glendale would hold a hearing on May 7, 2013 to approve the Riverwalk Urban Renewal Plan. According to M.A.K.'s complaint, the notice did not explain that the hearing related to the possibility of future condemnation proceedings against M.A.K.'s property.

After receiving this letter, M.A.K. claims one of its principals met with a representative of Glendale and asked what "blight" meant and whether M.A.K. should take any action in response. The representative answered that M.A.K. "did not need to worry about the notice." App. 15. Having worked with the City representative before, M.A.K. relied on his statement and did not attend the hearing.

At the May 7 hearing, Glendale found M.A.K.'s property blighted pursuant to the statutory factors. Glendale did not notify M.A.K. of this determination. Nor did Glendale inform M.A.K. of the thirty-day window to challenge it in state court. For that reason, M.A.K. claims it did not learn about the blight determination until November *1178 2013, when it engaged a real estate attorney to assist in M.A.K.'s private redevelopment of its property. By that time, the thirty-day window to challenge the determination had closed.

C. The suit

M.A.K. brought suit against Glendale under 42 U.S.C.

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Bluebook (online)
889 F.3d 1173, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mak-investment-group-v-city-of-glendale-ca10-2018.