A Brief Overview of Recent Changes in Colorado's Urban Renewal Law

• Publication year: 2004
• Pages: 99
• Citation: Vol. 33 No. 9 Pg. 99

33 Colo.Law. 99 Colorado Lawyer 2004.

2004, September, Pg. 99. A Brief Overview of Recent Changes in Colorado's Urban Renewal Law

Vol. 33, No. 9, Pg. 99

The Colorado Lawyer
September 2004
Vol. 33, No. 9 [Page 99]

Specialty Law Columns
Government and Administrative Law News
A Brief Overview of Recent Changes in Colorado's Urban Renewal Law
by Paul Benedetti, Gene Hohensee, Malcolm Murray, Carolynne C. White, Jim Windholz

This column provides information to attorneys dealing with various state and federal administrative agencies, as well as attorneys representing public or private clients in the areas of municipal, county, and school or special district law

Column Editors

Carolynne C. White, of Brownstein Hyatt & Farber, P.C (303) 223-1197, cwhite@bhf-law.com; Brad Bailey, Assistant City Attorney, City of Littleton - (303) 795-3725, bbailey@ littletongov.org; Tiffanie Bleau, Denver, an attorney with Light, Harrington & Dawes, P.C. - (303) 298-1601, tbleau@lhdlaw.com

About The Authors:

This month's article was written by Paul Benedetti, Boulder, a sole practitioner, (303) 499-6340, paul.benedetti@ comcast.net; Gene Hohensee, Denver, a partner in Arnold & Porter LLP - (303) 863-2317, eugene_hohensee@aporter.com; Malcolm Murray, Denver, a partner in Gorsuch Kirgis LLP - (303) 376-5016, mmurray@gorsuch.com; Carolynne White, Denver, Of Counsel with Brownstein Hyatt & Farber, P.C., (303) 223-1197, cwhite@bhf-law.com; and Jim Windholz, Boulder, an attorney with Windholz & Associates - (303) 443-3100, jwindholz@windholzlaw.com.

In 2004, the General Assembly significantly amended Colorado's urban renewal law. This article summarizes the changes to the statute and examines some implications of these changes for practitioners.

The Colorado urban renewal statute ("Urban Renewal Statute"), which is codified at CRS §§ 31-25-101 et seq., was recently amended by H.B. 04-1203. These revisions are numerous and substantial. They introduce new terms and concepts that may not be well understood until the courts have had occasion to interpret them in the context of litigation filed under the provisions of the new bill. Nonetheless, some urban renewal attorneys believe the amendments will have the overall impact of increasing the risk, cost, and delay of redevelopment projects around the state.

This article covers the portion of H.B. 04-1203 that makes changes to the Urban Renewal Statute.1 It provides a brief history of the Urban Renewal Statute and examines the amendments made by H.B. 04-1203.

Overview of Urban
Renewal Statute

The Urban Renewal Statute was first enacted in 1958,2 when urban renewal and slum clearance were pressing issues nationwide. Following the 1949 Federal Housing Act,3 the Urban Renewal Statute was originally intended primarily to enable Colorado to receive federal funds designated for slum clearance and housing construction. Title I of the Federal Housing Act provided funds for slum clearance and urban redevelopment, primarily targeted at the provision of housing.4 Under the Federal Housing Act, the federal government would provide funds for up to two-thirds of the cost of slum clearance and urban redevelopment projects; local governments were to provide the rest.5

1958 Statute Provisions

The main provisions of the original Urban Renewal Statute have not changed significantly since 1958. Under the 1958 statute, a municipality could form an urban renewal authority if it found that one or more slums or blighted areas existed within the municipality and that the rehabilitation of such areas was necessary to preserve the public's health, safety, morals, or welfare.6 In such areas, the authority could adopt an urban renewal plan and undertake an urban renewal project, including the acquisition of property by eminent domain.7 The original statute used the terms "slum area" and "blighted area," and defined each generally.8 This 1958 Urban Renewal Statute also required a public hearing concerning the finding that an area was a slum or blighted area and the adoption of the urban renewal plan.9

1999 Amendments

The Urban Renewal Statute was significantly amended in 1999.10 In 1999, the General Assembly replaced the general definition of "blight" with a list of eleven factors. It added the requirement that four of those eleven factors must be present to justify a finding of blight.11 The 1999 amendments contained a provision that, if the owners consented to the inclusion of their property in an urban renewal area, only one factor need be present for it to be considered a blighted area.12 In addition, a new requirement specified that the boundaries of an urban renewal area be drawn as narrowly as possible to accomplish the planning and development objectives of the urban renewal area.13

When the 1999 amendments went into effect, a feasible method of relocation for individuals and families was already required under the Urban Renewal Statute. The 1999 amendments added a requirement that, for an urban renewal plan to be approved, a governing body must find that a feasible method exists for the relocation of business concerns that would be displaced.14

Finally, the 1999 amendments required that: (1) no more than 120 days may pass between the first public hearing on the urban renewal plan and its passage;15 (2) property previously considered and not found to be blighted may not be reconsidered for two years unless substantial changes have occurred;16 and (3) a municipality must provide notice to the county assessor if tax increment financing is part of the urban renewal plan.17 The Colorado General Assembly did not amend the Urban Renewal Statute again until 2004, making significant changes with the passage of H.B. 04-1203.

H.B. 04-1203
Effective Dates

Some of the changes made by H.B. 04-1203 apply to urban renewal projects already underway; other changes apply only to new blight designations commenced after the effective date of the bill. The effective dates for H.B. 04-1203 depend on whether the provisions are for: (1) changes made to the relocation provisions of the statute; or (2) the rest of the changes.18

Relocation Provisions: These changes...