Carousel Farms v. Woodcrest Homes

Before the 2007-2008 financial crisis, Woodcrest Homes was poised to construct a new development. Woodcrest secured only a small parcel, "Parcel C" which was stuck between two larger parcels that were necessary for completion of the project. Over a decade after the failed development, a special metropolitan district controlled by a competitor, Century Communities, sought to condemn Parcel C and finish what Woodcrest started. Woodcrest objected, claiming the entire condemnation proceeding was really a sham designed to benefit Century. Woodcrest contended the condemnation violated both the public use protections of the Colorado Constitution and the statutory prohibition on economic development takings. According to Woodcrest, the purpose of the taking, at the time it occurred, was to satisfy contractual obligations between Century and the Town of Parker. Because the public would not be the beneficiary at the time of the taking, Woodcrest contends that this condemnation violated the Colorado Constitution. Moreover, it argued, the taking effectively transfers the condemned land to Century, which violated section 38-1-101(1)(b)(I), C.R.S. (2018), the state’s anti-economic development takings statute. The Colorado Supreme Court disagreed, finding that condemnation of Parcel C would benefit the public. And the Court found Colorado’s prohibition on economic development takings had no bearing on the condemnation at issue here: the plain language of section 38-1-101(1)(b)(I) prevented public entities from transferring condemned land to private entities. "But there was no transfer, and the only entity involved was a public one, the special district." View "Carousel Farms v. Woodcrest Homes" on Justia Law