v. CSG Redevelopment

2019 COA 91
CourtColorado Court of Appeals
DecidedJune 20, 2019
Docket18CA0534, Martinez
StatusPublished
Cited by2 cases

This text of 2019 COA 91 (v. CSG Redevelopment) 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
v. CSG Redevelopment, 2019 COA 91 (Colo. Ct. App. 2019).

Opinion

The summaries of the Colorado Court of Appeals published opinions constitute no part of the opinion of the division but have been prepared by the division for the convenience of the reader. The summaries may not be cited or relied upon as they are not the official language of the division. Any discrepancy between the language in the summary and in the opinion should be resolved in favor of the language in the opinion.

SUMMARY June 20, 2019

2019COA91

No. 18CA0534, Martinez v. CSG Redevelopment — Government — Colorado Governmental Immunity Act — Immunity and Partial Waiver — Public Entity — Instrumentality

A division of the court of appeals addresses whether an entity

— CSG Redevelopment Partners, LLLP (CSGR) — is an

“instrumentality” of a public entity entitled to immunity under the

Colorado Governmental Immunity Act, §§ 24-10-103, -106, C.R.S.

2018. In holding that it is, the division determines that, despite its

inclusion of a private entity and partial reliance on funding from a

private investor, CSGR’s public purpose and the Denver Housing

Authority’s extensive control over it renders it an instrumentality of

a public entity. The division also addresses the limits of the waiver

of immunity for “[a] dangerous condition caused by an

accumulation of snow and ice which physically interferes with public access on walks leading to a public building open for public

business,” § 24-10-106(1)(d)(III), and concludes that a low-income

housing facility is not a “public building open for public business”

because it is not generally accessible to members of the public. COLORADO COURT OF APPEALS 2019COA91

Court of Appeals No. 18CA0534 City and County of Denver District Court No. 16CV31344 Honorable Jay S. Grant, Judge

Guadalupe P. Martinez,

Plaintiff-Appellant,

v.

CSG Redevelopment Partners LLLP, a Colorado limited liability limited partnership,

Defendant-Appellee.

JUDGMENT AFFIRMED

Division V Opinion by JUDGE J. JONES Terry and Grove, JJ., concur

Announced June 20, 2019

DiGiacomo, Jaggers & Perko, LLP, Douglas J. Perko, Arvada, Colorado, for Plaintiff-Appellant

Harris, Karstaedt, Jamison & Powers, P.C., Susan M. Stamm, Englewood, Colorado, for Defendant-Appellee ¶1 Guadalupe P. Martinez, a resident of the low-income housing

facility Casa Loma Apartments, slipped and fell on a walkway

leading to the apartment building. Seeking to recover for his

injuries, Mr. Martinez sued CSG Redevelopment Partners, LLLP

(CSGR), Casa Loma’s management company and the building’s

owner, under the Premises Liability Act, § 13-21-115, C.R.S. 2018,

and (alternatively) for negligence, alleging that CSGR had allowed

snow and ice to accumulate on the walkway.

¶2 CSGR moved to dismiss the complaint, arguing that, as an

“instrumentality” of a public entity — the Denver Housing Authority

(DHA) — it is immune from tort liability under the Colorado

Governmental Immunity Act (CGIA), § 24-10-106, C.R.S. 2018. It

also argued that the exception to governmental immunity in section

24-10-106(1)(d)(III) for a dangerous condition on a walkway “leading

to a public building open for public business” doesn’t apply because

Casa Loma isn’t such a building. Mr. Martinez opposed the motion.

After a Trinity Broadcasting of Denver, Inc. v. City of Westminster,

848 P.2d 916 (Colo. 1993), hearing, the district court granted

CSGR’s motion, ruling that CSGR is an instrumentality of the DHA

and that the public building exception doesn’t apply.

1 ¶3 We conclude that, because of both DHA’s extensive control

over CSGR and CSGR’s public purpose, CSGR is an instrumentality

of a public entity within the meaning of the CGIA, and therefore a

public entity itself entitled to governmental immunity. We also

conclude that the record supports the district court’s finding that

Casa Loma isn’t a public building open for public business, and

that Mr. Martinez’s alternative contention that immunity doesn’t

apply because the walkway is part of a “public facility located in [a]

recreation area maintained by a public entity,” see § 24-10-

106(1)(e), is, on this record, unavailing. The upshot is we affirm the

district court’s judgment.

I. Background

¶4 The following facts were found by the district court with record

support or are otherwise undisputed.

¶5 In 1987, DHA created the Denver Housing Corporation (DHC),

a nonprofit entity that DHA completely owns and controls. For

nearly thirty years, DHC (and, by extension, DHA), has owned and

operated the Casa Loma Apartments. In 2013, to finance the

renovation of Casa Loma and two other low-income housing

properties, DHA created CSGR and CSG Housing, Inc. CSG

2 Housing served as CSGR’s general partner, and another of DHA’s

instrumentalities, DHA Limited Partner, served as CSGR’s limited

partner. At that point, CSGR was made up of, and controlled

entirely by, DHA instrumentalities.1

¶6 But in 2014, as part of CSGR’s effort to secure more funding

for the renovations, Wincopin Circle LLLP joined CSGR as a limited

partner. 2 It functions mainly as an investor, having contributed

approximately $12.5 million in equity financing. CSG Housing and

DHA Limited Partner each contributed $90 and $10, respectively.

As a result, CSG Housing, as the general partner, retained a 0.01%

ownership interest in CSGR; DHA Limited Partner, a special limited

partner, retained a 0.001% ownership interest in CSGR; and the

investor, the limited partner, received a 99.989% ownership interest

in CSGR and qualified for tax credits through the Low-Income

Housing Tax Credit (LIHTC) program — a federal program that

1 The parties stipulated that DHA is a public entity and that DHC and CSG Housing are instrumentalities of DHA within the meaning of the CGIA. 2 American Express - West Equity Fund Limited Partnership later

replaced Wincopin. For simplicity’s sake, we’ll refer to them collectively as “the investor.”

3 offers federal tax credits to private investors as an incentive to

invest in low-income housing projects. See 26 U.S.C. § 42 (2018).

The partnership is governed by a restated partnership agreement

(more about which we’ll discuss below).

¶7 Around the same time the investor joined CSGR, DHC leased

the land under Casa Loma to CSGR for sixty-five years; DHC

transferred its ownership of the structural improvements on the

property to CSGR (this was also so the investor could qualify for

LIHTC); and DHA lent CSGR approximately $45.3 million, $21

million of which was a construction loan that DHA funded by

issuing private activity bonds (about $15 million was cash directly

from DHA). CSG Housing, acting in its capacity as the general

partner, hired DHA as the manager of the property under a written

management agreement (another agreement about which we’ll talk

more below).

¶8 Several years later, Mr. Martinez slipped and fell on an

allegedly icy walkway leading to the building. He sued CSGR,

claiming over $400,000 in medical expenses. As noted, the district

court dismissed his complaint based on governmental immunity.

4 II. Discussion

¶9 Mr.

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2019 COA 91, Counsel Stack Legal Research, https://law.counselstack.com/opinion/v-csg-redevelopment-coloctapp-2019.