McLain v. Colorado Springs

Colorado Court of Appeals·Decided July 30, 2026·No. 25CA1316·Unpublished

Opinion

25CA1316 McLain v Colorado Springs 07-30-2026 COLORADO COURT OF APPEALS

Court of Appeals No. 25CA1316 El Paso County District Court No. 24CV31520 Honorable Gregory R. Werner, Judge

John McLain; Melissa Harte; and Protect Mountain Shadows, a nonprofit corporation,

Plaintiffs-Appellants, v.

City of Colorado Springs, a home rule City and Colorado municipal corporation, acting through the city council of the City of Colorado Springs,

Defendant-Appellee.

JUDGMENT AFFIRMED

Division VI

Opinion by JUDGE MOULTRIE Grove and Bernard*, JJ., concur

NOT PUBLISHED PURSUANT TO C.A.R. 35(e)

Announced July 30, 2026

Katherine Gayle, Colorado Springs, Colorado, for Plaintiffs-Appellants

Marc Smith, Acting City Attorney, W. Erik Lamphere, Division Chief, Colorado Springs, Colorado, for Defendant-Appellee

*Sitting by assignment of the Chief Justice under provisions of Colo. Const. art. VI, § 5(3), and § 24-51-1105, C.R.S. 2025.

¶1 Plaintiffs, John McLain; Melissa Harte; and Protect Mountain Shadows, a nonprofit corporation, appeal the district court’s judgment affirming the decision of defendant, the Colorado Springs City Council (City Council), to approve a rezoning application and associated development plan. We affirm.

I. Background

¶2 Arrowswest Apartment I, LLC (Arrowswest), owns approximately 9.5 acres of land (the property) near the intersection of North 30th Street and West Garden of the Gods Road (the intersection) in Colorado Springs. Nearly three-quarters of the property was zoned as a business park, while the remaining portion was zoned for “medium scale” mixed use. Arrowswest submitted an application to the Colorado Springs Planning Commission (Planning Commission) requesting that the entire property be rezoned for mixed use so that Arrowswest could build a 222-unit multifamily apartment complex at the southwest corner of the intersection (the project). ¶3 The Planning Commission held a hearing in April 2024 and found that the rezoning request complied with the applicable

rezoning criteria and conditionally found1 that the project complied with the criteria for a development plan.2 The Planning Commission recommended that City Council approve Arrowswest’s application. ¶4 A public hearing on Arrowswest’s application was set for June 2024, but it was rescheduled after confusion arose during the hearing regarding whether the property was within a hillside overlay zone.3 Kevin Walker, the interim director of planning and neighborhood services, explained to City Council that the “hillside overlay” applies to locations in Colorado Springs with vegetation and slope that would be impacted by property development and,

1 The Planning Commission’s recommendation was conditioned on

Arrowswest providing certain additional information. The additional information requested is irrelevant to our analysis. 2 Section 7.5.515(A) of the Unified Development Code of the City of

Colorado Springs says that the purpose of a development plan is to “evaluate the specific impacts of the proposed land use and site design on the adjacent properties, neighborhood, schools, parks, road systems, and existing and planned infrastructure to ensure that proposed development is appropriate at a particular location.” 3 An “overlay” zone or district imposes “independent or

supplemental restrictions or controls on land use and development within the area designated for the classification or allow[s] a use or activity in the designated area that would otherwise be prohibited.” 1 Arden H. Rathkopf, Daren A. Rathkopf & Edward H. Ziegler, Jr., Rathkopf’s The Law of Zoning and Planning § 10:3, Westlaw (4th ed. database updated May 2026).

thus, require “extra sensitivity and care” with respect to “visibility, access, and a variety of other criteria.” ¶5 Walker told City Council that he didn’t believe the property was zoned with a hillside overlay, but certain ordinances and zoning maps created confusion about its status. City Council postponed the hearing to allow Walker the opportunity to research the issue and present his findings at a future hearing. ¶6 At the second public hearing, Walker presented information to City Council about various zoning actions beginning in 1980 that had impacted the property’s zoning classification. Ultimately, Walker concluded that the property was excluded from the hillside overlay zone by a 1989 ordinance. He explained that the property had been graded, so “it no longer exhibited any of the hillside characteristics.” The city attorney agreed with Walker’s analysis. ¶7 City Council also heard from supporters of the project, including the director of government affairs for the local chamber of commerce and representatives from two nonprofits that focus on affordable housing; the city’s fire marshal, who provided information about local fire districts’ improved ability to be responsive to potential wildfire events; and numerous citizens who

opposed the project. At the end of the hearing, City Council approved Arrowswest’s application.

II. Procedural Background ¶8 Plaintiffs filed a complaint under C.R.C.P. 106(a)(4) challenging City Council’s approval of the application. They argued that City Council abused its discretion by violating a provision in the city’s municipal code that says a rezoning decision “will not be detrimental to the public interest, health, safety, convenience, or general welfare,” Colo. Springs City Code § 7.5.704(D)(2), and by violating the hillside overlay. ¶9 The complaint also included a request for a declaratory judgment under C.R.C.P. 57. In support of the declaratory judgment claim, plaintiffs alleged that the application review process had the appearance of impropriety and was affected by conflicts of interest because four of the councilmembers who voted to approve the application had each received a $2,500 campaign contribution from Arrowswest. Plaintiffs therefore requested a declaratory judgment stating that City Council’s approval of Arrowswest’s application was “contrary to and in violation of” certain ethics-related sections of the Colorado Springs City Code

(city code) and requiring councilmembers to abide by their obligations under those sections when considering future development applications from Arrowswest. ¶ 10 The district court dismissed plaintiffs’ Rule 106(a)(4) complaint. The court explained that plaintiffs misunderstood the standard of review because if any competent evidence existed in the record to support City Council’s decision, the court was required to affirm it — even if plaintiffs had presented conflicting evidence based on legitimate concerns. The court concluded that, reviewing the record as a whole, there was competent evidence to support City Council’s decision. With respect to whether City Council had a conflict of interest, the court concluded that plaintiffs had “failed to overcome the presumption of integrity, honesty and impartiality” as set forth in Soon Yee Scott v. City of Englewood, 672 P.2d 225 (Colo. App. 1983). ¶ 11 About a month after the district court’s ruling, plaintiffs filed their notice of appeal in this court. And a month after that, they filed a motion in the district court seeking clarification of whether the court had actually ruled on their request for declaratory judgment.

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