Whitelaw, III v. Denver City Council , 405 P.3d 433 ( 2017 )


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  • COLORADO COURT OF APPEALS                                         2017COA47
    Court of Appeals No. 16CA0920
    City and County of Denver District Court No. 15CV32427
    Honorable Shelley I. Gilman, Judge
    Arthur Keith Whitelaw, III; John DeRungs; Katherine K. McCrimmon; Laura
    Pitmon; Denise Sigon, f/k/a Denise L. Sager; Alan Singer; and Rita Singer,
    Plaintiffs-Appellants,
    v.
    Denver City Council, including the individual Council members in their official
    capacity, Albus Brooks, Charlie Brown, Jeanne Faatz, Christopher Herndon,
    Robin Kniech, Peggy Lehmann, Paul López, Judy H. Montero, Chris Nevitt,
    Debbie Ortega, Jeanne Robb, Susan Shepherd, and Mary Beth Susman;
    Manager of Community Planning and Development, Brad Buchanan, in his
    official capacity; Denver Planning Board, including the individual Board
    members in their official capacity, Andy Baldyga, Jim Bershof, Shannon
    Gifford, Renee Martinez-Stone, Brittney Morris Saunders, Joel Noble, Susan
    Pearce, Arleen Taniwaki, Julie Underdahl, Frank Schultz, and Chris Smith;
    City and County of Denver; and Cedar Metropolitan LLC,
    Defendants-Appellees.
    JUDGMENT AFFIRMED
    Division I
    Opinion by JUDGE TAUBMAN
    Navarro and Plank*, JJ., concur
    Announced April 6, 2017
    Gibson, Dunn & Crutcher LLP, Gregory J. Kerwin, Denver, Colorado, for
    Plaintiffs-Appellants
    Kristin M. Bronson, Denver City Attorney, Nathan J. Lucero, Assistant City
    Attorney, Tracy A. Davis, Assistant City Attorney, Denver, Colorado, for
    Defendants-Appellees Denver City Council, including the individual Council
    members in their official capacity, Albus Brooks, Charlie Brown, Jeanne Faatz,
    Christopher Herndon, Robin Kniech, Peggy Lehmann, Paul López, Judy H.
    Montero, Chris Nevitt, Debbie Ortega, Jeanne Robb, Susan Shepherd, and
    Mary Beth Susman; Manager of Community Planning and Development, Brad
    Buchanan, in his official capacity; Denver Planning Board, including the
    individual Board members in their official capacity, Andy Baldyga, Jim Bershof,
    Shannon Gifford, Renee Martinez-Stone, Brittney Morris Saunders, Joel Noble,
    Susan Pearce, Arleen Taniwaki, Julie Underdahl, Frank Schultz, and Chris
    Smith; and City and County of Denver
    Foster Graham Milstein & Calisher, LLP, Chip G. Schoneberger, Katherine
    Roush, Denver, Colorado, for Defendant-Appellee Cedar Metropolitan LLC
    *Sitting by assignment of the Chief Justice under provisions of Colo.
    Const. art. VI, § 5(3), and § 24-51-1105, C.R.S. 2016.
    ¶1    In this C.R.C.P. 106(a)(4) action, plaintiffs, Arthur Keith
    Whitelaw, III; John DeRungs; Katherine K. McCrimmon; Laura
    Pitmon; Denise Sigon, formerly known as Denise L. Sager; Alan
    Singer; and Rita Singer (the neighbors), seek judicial review of the
    rezoning decision of defendant Denver City Council.1 We affirm.
    I.     Background
    ¶2    Defendant Cedar Metropolitan LLC (Cedar) applied to rezone
    the 2.3-acre “Mt. Gilead Parcel” located at 195 S. Monaco Parkway,
    on the southeast corner of Crestmoor Park in east Denver (the
    parcel). To build an age-targeted2 apartment complex on the site,
    Cedar sought to tear down a blighted church on the site and rezone
    1 The neighbors’ notice of appeal also names as defendants the
    individual Council members in their official capacity, Albus Brooks,
    Charlie Brown, Jeanne Faatz, Christopher Herndon, Robin Kniech,
    Peggy Lehmann, Paul López, Judy H. Montero, Chris Nevitt, Debbie
    Ortega, Jeanne Robb, Susan Shepherd, and Mary Beth Susman;
    the Manager of Community Planning and Development (Brad
    Buchanan, in his official capacity); the Denver Planning Board
    (including the individual members in their official capacity,
    Andy Baldyga, Jim Bershof, Shannon Gifford, Renee Martinez-
    Stone, Brittney Morris Saunders, Joel Noble, Susan Pearce, Arleen
    Taniwaki, Julie Underdahl, Frank Schultz, and Chris Smith); and
    the City and County of Denver.
    2 According to the June 2015 hearing record, Cedar applied to
    rezone the site in October 2014 to build this “age-targeted” housing.
    “Age-targeted” is a marketing term developers use to describe
    residents who are empty nesters or aged forty-five and older.
    1
    the parcel from E-SU-DX (single-family home) to S-MU-3 (allowing
    three-story apartment buildings).
    ¶3    The neighbors are property owners who live in the Crestmoor
    Park neighborhood located near the parcel. They challenged efforts
    by Cedar to rezone the parcel. They asserted that rezoning would
    harm their property values, create traffic and parking problems,
    cause hazards to pedestrians, and degrade the character of the
    surrounding neighborhood. In June 2015, after an eight-hour
    hearing where the City Council heard comments from the public
    both in support of and against the rezoning, the City Council
    changed the zoning designation to S-MU-3.
    ¶4    The neighbors then challenged the rezoning in district court.
    Their complaint asserted a claim for judicial review under C.R.C.P.
    106(a)(4) of the decisions of the City Council, the Denver Planning
    Board, and the Community Planning and Development Department
    (CPD) relating to the rezoning of the parcel. The neighbors also
    asserted a claim for declaratory relief concerning (a) the City’s policy
    and practice of not considering traffic and parking impacts in the
    rezoning process; (b) the City’s implementation of the Protest
    Procedure in the Denver City Charter and Denver Zoning Code
    2
    (DZC); (c) the conflicts created by campaign contributions to
    Council members from Cedar’s lobbyist seeking Council approval of
    Cedar’s proposed zoning change; and (d) whether the rezoning
    constituted unlawful spot zoning. The district court rejected all of
    the neighbors’ claims.
    ¶5    On appeal, the neighbors challenge the City Council’s approval
    of Cedar’s requested rezoning under C.R.C.P. 106(a)(4). They assert
    various claims, including violation of their right to due process.
    While the neighbors mention in their briefs an appeal of the court’s
    denial of their claim for declaratory relief, we do not address it,
    since the neighbors have only raised such a claim in a cursory
    manner; indeed they did not cite C.R.C.P. 57 in their appellate
    briefs. See People v. Gingles, 
    2014 COA 163
    , ¶ 29, 
    350 P.3d 968
    ,
    973 (citing People v. Wallin, 
    167 P.3d 183
    , 187 (Colo. App. 2007))
    (declining to address arguments presented in a perfunctory or
    conclusory manner).
    II.   Due Process Violation
    ¶6    The neighbors contend that the City Council violated their
    rights to due process in five ways. We disagree and address each
    contention in turn.
    3
    A.   Standard of Review and Preservation
    ¶7    In a Rule 106(a)(4) proceeding, our review is limited to whether
    the governmental body’s decision was an abuse of discretion or was
    made in excess of its jurisdiction, based on the evidence in the
    record before that body. C.R.C.P. 106(a)(4)(I); Verrier v. Colo. Dep’t
    of Corr., 
    77 P.3d 875
    , 879 (Colo. App. 2003); see also Alpenhof, LLC
    v. City of Ouray, 
    2013 COA 9
    , ¶ 9, 
    297 P.3d 1052
    , 1055. An
    agency’s misinterpretation or misapplication of governing law may
    constitute an alternative ground for finding an abuse of discretion
    under C.R.C.P. 106(a)(4). See Roalstad v. City of Lafayette, 2015
    COA ¶ 13, 
    363 P.3d 790
    , 793.
    ¶8    Because an appellate court sits in the same position as the
    district court when reviewing an agency’s decision under C.R.C.P.
    106(a)(4), appellate review of the district court’s decision is de novo.
    Alward v. Golder, 
    148 P.3d 424
    , 428 (Colo. App. 2006) (citing
    Thomas v. Colo. Dep’t of Corr., 
    117 P.3d 7
    (Colo. App. 2004)). The
    rezoning of an individual parcel is a quasi-judicial decision by the
    City Council. Cherry Hills Resort Dev. Co. v. City of Cherry Hills
    Village, 
    757 P.2d 622
    , 625-26 (Colo. 1988). Quasi-judicial decision-
    making requires notice and an opportunity to be heard as a matter
    4
    of “fundamental fairness to those persons whose protected interests
    are likely to be affected by the governmental decision.” 
    Id. at 626.
    We affirm a rezoning decision unless the governmental entity
    exceeded its jurisdiction or abused its discretion, which occurs if
    the body misapplied the law or no competent evidence supports its
    decision. Alpenhof, ¶ 
    9, 297 P.3d at 1055
    . “No competent
    evidence” means that the decision is “so devoid of evidentiary
    support that it can only be explained as an arbitrary and capricious
    exercise of authority.” Canyon Area Residents v. Bd. of Cty.
    Comm’rs, 
    172 P.3d 905
    , 907 (Colo. App. 2006) (quoting Bd. of Cty.
    Comm’rs v. O’Dell, 
    920 P.2d 48
    , 50 (Colo. 1996)). While
    interpretation of a city code is reviewed de novo, interpretations of
    the code by the governmental entity charged with administering it
    deserve deference if they are consistent with the drafters’ overall
    intent. Alpenhof, ¶ 
    10, 297 P.3d at 1055
    .
    ¶9     The neighbors preserved all of the issues below by raising
    them in their Rule 106 petition.
    B.   Ex Parte Communications
    ¶ 10   The neighbors assert that Sean Maley, a lobbyist for Cedar,
    communicated with Council member Mary Beth Susman, the
    5
    Council member in whose district the parcel lies, through her
    private e-mail account and by phone prior to the public hearing.
    They also suggest that Maley had similar communications with
    other Council members. The neighbors contend that the failure to
    disclose these communications to the public prior to the hearing
    deprived them of their due process rights since they did not receive
    notice and opportunity to rebut the information on which the
    Council may have impermissibly relied in making its
    determination.3
    ¶ 11   Acting as quasi-judicial decision-makers, city council
    members are entitled to a “presumption of integrity, honesty, and
    impartiality.” Soon Yee Scott v. City of Englewood, 
    672 P.2d 225
    ,
    3 The neighbors assert that if we do not vacate the rezoning on the
    basis of the ex parte communications, we should reverse and
    remand because of the district court’s erroneous discovery rulings,
    which blocked the neighbors from obtaining documents and
    deposition testimony about the alleged prejudicial effect of these
    communications. However, “[r]eview of a governmental body’s
    decision pursuant to Rule 106(a)(4) requires an appellate court to
    review the decision of the governmental body itself rather than the
    district court’s determination regarding the governmental body’s
    decision.” IBC Denver II, LLC v. City of Wheat Ridge, 
    183 P.3d 714
    ,
    717 (Colo. App. 2008) (citation omitted). Accordingly, our review is
    based solely on the record that was before the City Council. A
    remand for further discovery is not permitted under a C.R.C.P. 106
    claim if that evidence was not a part of the record in the first place.
    6
    227 (Colo. App. 1983). Thus, while it is true that parties to an
    administrative hearing should have the opportunity to be
    confronted with all facts that influence the disposition of a case,
    there must be substantial prejudice that is shown to invalidate an
    agency action in order to rebut this presumption. L.G. Everist, Inc.
    v. Water Quality Control Comm’n of Colo. Dep’t of Health, 
    714 P.2d 1349
    , 1352 (Colo. App. 1986) (citing Mobile Pre-Mix Transit, Inc. v.
    Pub. Utils. Comm’n, 
    618 P.2d 663
    (Colo. 1980)).
    ¶ 12   Here, despite extensive evidence consisting of approximately
    fifty pages of e-mails that form the basis of their allegation of
    prejudice, the neighbors pointed to no evidence of e-mails or
    telephone conversations that had a substantial prejudicial impact
    on the outcome of the proceeding. In fact, Council member Susman
    ultimately voted against the rezoning. Nothing in the record
    suggests that she disclosed any prejudicial communications to
    other Council members who voted in favor of rezoning, either.
    Further, the district court, in its detailed and thorough order, noted
    that the record established that Council member Susman reiterated
    in her e-mails to several people, including one to former Council
    member Susan Barnes-Gelt, that she had a duty to remain
    7
    impartial. Thus, the record shows that, despite the neighbors’
    claims that Susman encouraged others to vote in favor of the
    rezoning while she voted against it,4 the neighbors have not
    rebutted the presumption that Susman acted impartially. The
    neighbors’ claims, based solely on the hearsay e-mail from Barnes-
    Gelt, are insufficient to rebut the presumption.
    ¶ 13   Therefore, we conclude that because the neighbors have not
    overcome the presumption of integrity, honesty, and impartiality,
    and have shown no prejudice from the communications, the City
    Council did not violate their due process rights. See Soon Yee 
    Scott, 672 P.2d at 227
    .
    C.     The Planning Board Conflict of Interest
    ¶ 14   The neighbors also assert that their due process rights were
    violated due to the involvement of Jim Bershof, Cedar’s architect
    and a member of the City’s Planning Board, in the application
    process. The City’s Planning Board recommended that the City
    4 The neighbors cite to an e-mail from Barnes-Gelt that said she
    heard that Council member Susman was not supporting the
    rezoning, but had been letting others know that she would be
    comfortable if it was approved. Besides the fact that this
    information is hearsay within hearsay, in her response, Council
    member Susman clearly dismissed such gossip and recognized her
    duty to be impartial.
    8
    Council approve the rezoning application. Bershof submitted the
    application to the Board, but he did not attend or vote on the
    rezoning. The neighbors claim that their due process rights were
    violated because Bershof’s connection to the Board imbued every
    member with an inherent conflict of interest when they voted, as
    quasi-judges, on their own colleague’s rezoning request. For the
    reasons discussed below, we do not address this claim.
    ¶ 15   Denver Revised Municipal Code (D.R.M.C.) section 12-44
    specifically provides:
    Any planning board member having a financial
    interest in any measure before the board shall
    not participate in the consideration of such
    measure as a board member nor vote on such
    measure, but the board shall have authority to
    grant a hearing to such member in the
    capacity of or as an applicant, subject to the
    board’s bylaws and rules and regulations
    governing such hearings.
    Bershof complied with this requirement by not attending the
    Planning Board meeting or otherwise participating in the decision.
    Regardless, whether section 12-44 creates or allows an
    impermissible conflict of interest among the Planning Board
    members is not subject to judicial review under Rule 106, which
    9
    limits our review to decisions of governmental bodies or officers
    “exercising judicial or quasi-judicial functions.” C.R.C.P. 106(a)(4).
    ¶ 16   According to the zoning code, Planning Board members only
    make recommendations to the City Council on rezoning
    applications. See DZC § 12.4.10.4(E). A division of this court
    considered a similar issue under the Cherry Hills Municipal Code in
    Buck v. Park, 
    839 P.2d 498
    , 500 (Colo. App. 1992). The plaintiffs in
    that case sought judicial review under C.R.C.P. 106(a)(4) of a
    recommendation by the Cherry Hills Planning and Zoning
    Commission to deny their rezoning application. 
    Id. at 499.
    The
    division held their claim unreviewable because the Cherry Hills
    Municipal Code permitted the Commission only to make a
    recommendation, while the final decision was reserved for the City
    Council. 
    Id. at 500.
    ¶ 17   Likewise, we conclude that the Planning Board’s
    recommendation on a proposed rezoning application is not
    appealable because it is not a “final decision” reviewable under
    C.R.C.P. 106(a)(4). According to the DZC, a decision by the City
    Council on a rezoning decision may be appealed to the district
    court. § 12.4.11.5. Nowhere does the DZC refer to the Planning
    10
    Board’s recommendation on a proposed rezoning amendment as a
    “decision.” Rather, the code refers to a “recommendation” by the
    Planning Board and a “[f]inal [d]ecision” by the City Council.
    § 12.4.11.3. The Planning Board’s recommendation is only an
    intermediate step in the review process, which concludes with the
    City Council’s decision to approve or deny the proposed rezoning
    amendment. The DZC explicitly states that only the City Council is
    responsible for “final action” on a proposed rezoning amendment.
    § 12.2.1.2. Therefore, Rule 106(a)(4) affords no jurisdictional basis
    to review Planning Board recommendations.
    ¶ 18   The neighbors contend that, regardless, the Planning Board’s
    recommendation is an essential step of the process warranting
    review under Rule 106(a)(4). However, our review is still limited to
    decisions of governmental bodies or officers “exercising judicial or
    quasi-judicial functions.” C.R.C.P. 106(a)(4). While the neighbors
    argue that the Planning Board could not function as a neutral
    decision-maker due to Bershof’s participation, we conclude, by
    language of the DZC, that the Planning Board does not sit as a
    quasi-judicial decision-maker, nor are its recommendations an
    exercise of a quasi-judicial function. Its recommendation is only
    11
    that, while the City Council holds the power to make a final
    decision on the recommendation of the Planning Board.
    ¶ 19   Accordingly, we do not review this claim.
    D.   Irrelevant Political Factors
    ¶ 20   The neighbors next argue that their due process rights were
    violated because certain City Council members’ comments at the
    public hearing reflected “flawed quasi-judicial decision making” and
    showed that they “relied on irrelevant factors and information
    outside of the hearing record” in arriving at their decisions.
    ¶ 21   Quasi-judicial decision-makers are required to base their
    decisions on relevant review criteria and the evidence in the
    administrative record. See, e.g., Snyder v. City of Lakewood, 
    189 Colo. 421
    , 425, 
    542 P.2d 371
    , 374 (1975), overruled on other
    grounds by Margolis v. Dist. Court, 
    638 P.2d 297
    , 299 (Colo. 1981).
    Again, the City Council’s decision must be upheld unless no
    competent evidence in the record supports it. City & Cty. of Denver
    v. Bd. of Adjustment, 
    55 P.3d 252
    , 254 (Colo. App. 2002).
    ¶ 22   As we discuss in Part III below, the neighbors fail to
    demonstrate a lack of competent evidence supporting the City
    Council’s ultimate decision or that any individual Council member
    12
    relied on factual information outside the hearing record or ignored
    the record evidence in casting his or her vote. Rather, the record
    shows that the City Council’s approval of the proposed rezoning was
    consistent with the City’s adopted plans, as required by the DZC,
    and the Council considered the public health, safety, and general
    welfare.
    ¶ 23   The neighbors even acknowledge that, in explaining their votes
    in favor of rezoning, City Council members relied on the provisions
    of the adopted plans. For example, Council member Chris Nevitt
    said that the adopted plans encouraged preservation of old
    neighborhoods and struck a balance between preservation and
    prevention of sprawl. He also noted that, consistent with the
    adopted plans, the proposed new housing complex was along a
    transit route. Council member Albus Brooks also discussed
    whether the “existing site” reflected “the context.”
    ¶ 24   We therefore conclude that competent evidence in the record
    supports the City Council’s rezoning decision such that the
    neighbors have failed to rebut the presumption of integrity, honesty,
    and impartiality in favor of the City Council’s decision.
    13
    E.    The Protest Petition Procedure
    ¶ 25   The neighbors next assert that their due process rights were
    violated because the City Council stepped outside of its neutral,
    quasi-judicial role and supported Cedar by improperly applying the
    protest petition procedure of the Denver City Charter.
    ¶ 26   Section 3.2.9(E) of the Denver Charter outlines the protest
    petition procedure. If opponents of a City Council action gather
    signatures from property owners representing twenty percent or
    more of the land area within 200 feet of the perimeter of a proposed
    rezoning, then the rezoning must pass the City Council by a super-
    majority (ten members). In calculating the land area, the City
    included City-owned land, including the portion of Crestmoor Park
    within the 200-foot protest petition area.
    ¶ 27   Opponents gathered only enough signatures to represent
    seventeen percent of the perimeter zone and thus failed to trigger
    the requirement of a super-majority. The rezoning passed by an
    eight to four vote. The neighbors argue that the City improperly
    applied the protest procedure by including the park land but not
    allowing any procedure for residents to obtain petition signatures
    from the City. The neighbors request that we hold that the City
    14
    must either (a) exclude City-owned park land from the protest
    petition area or (b) create a procedure to allow citizens to obtain
    protest petition signatures from City representatives for City-owned
    park land.
    ¶ 28   Cedar and the City Council respond that the City Council
    properly followed the holding in Burns v. City Council, 
    759 P.2d 748
    (Colo. App. 1988), in which a division of this court interpreted
    charter section 3.2.9(E) to require inclusion of all City-owned land
    in the calculation of the 200-foot protest petition area.
    ¶ 29   We agree with Cedar and the City Council and conclude that
    Burns properly interpreted this ordinance to include all land in the
    200-foot area irrespective of ownership.
    ¶ 30   In Burns, a division of this court held that “[t]he charter and
    ordinance provisions that the protest area be defined as ‘the area to
    a distance of 200 feet from the perimeter of the area proposed for
    change’ are clear, plain, and unambiguous; accordingly, they must
    be applied as 
    written.” 759 P.2d at 750
    . The division further held
    that, as a result, the City’s inclusion of City-owned streets in its
    computation of the protest area was neither arbitrary nor
    15
    capricious; consequently, it was not erroneous. 
    Id. (citing Pfaff
    v.
    City of Lakewood, 
    712 P.2d 1041
    (Colo. App. 1985)).
    ¶ 31   In calculating the land area here, the City Council likewise
    included all City-owned land within the 200-foot protest petition
    area. Because this calculation was in accordance with the plain
    language of charter section 3.2.9(E), as interpreted in Burns, this
    method of computation was not arbitrary or capricious.
    ¶ 32   As for the neighbors’ second claim requesting that we either
    create a procedure to allow citizens to obtain signatures from City
    representatives or compel the City to create such a procedure, we
    have no authority to do so. Further, the record reflects that the
    neighbors contacted the director of the City’s Parks Department and
    requested that she sign the petition but that she had “refused to
    take sides on the matter.” Her refusal to sign did not effectively
    foreclose the neighbors’ opportunity to meet the requirements of the
    protest petition procedure.
    ¶ 33   In conclusion, the City did not err in its calculation of the
    protest petition area.
    16
    F.    Campaign Contributions
    ¶ 34   The neighbors next contend that their due process rights were
    violated because some Council members received “substantial”
    political contributions from lobbyists and, therefore, were biased in
    the rezoning vote. They assert that, based on City of Manassa v.
    Ruff, 
    235 P.3d 1051
    (Colo. 2010), and Caperton v. A.T. Massey Coal
    Co., 
    556 U.S. 868
    (2009), “[t]hese fundamental protections of
    neutrality and fairness also apply to non-judicial decision-makers
    acting in a quasi-judicial capacity,” 
    Manassa, 235 P.3d at 1057
    ,
    and therefore, quasi-judicial decision-makers should be held to the
    same judicial canons as judges.
    ¶ 35   However, we conclude, as did the district court, that our
    review of this proceeding under Rule 106(a)(4) is limited to the
    record that was before the City Council. Because evidence of the
    contributions was not in the record before the Council and the
    neighbors first raised this issue in the district court, we may not
    review it. Further, the neighbors did not address this issue on
    appeal in connection with their declaratory relief claim. We thus do
    not review this challenge to the Council members’ roles as neutral,
    17
    quasi-judicial decision-makers because it is based on facts outside
    the record of the Rule 106 proceeding.
    III.   Compliance With the Zoning Code
    ¶ 36   The neighbors next contend that we must vacate the rezoning
    decision because, as a matter of law, the rezoning does not comply
    with the City’s zoning ordinance; specifically, the rezoning is not
    consistent with the City’s adopted plans, no specific circumstances
    justified the rezoning, and the rezoning fails to further the public
    health, safety, and general welfare. We disagree.
    ¶ 37   In this case, the City Council must abide by the DZC, which
    requires that a proposed rezoning be consistent with the City’s
    adopted plans and further the public health, safety, and general
    welfare. § 12.4.10.7. There must also be specific “[j]ustifying
    [c]ircumstances” warranting the rezoning. § 12.4.10.8.
    ¶ 38   The City Council approved rezoning of the parcel as S-MU-3.
    The parcel is bounded on the east by South Monaco Parkway.
    There are multi-family apartments situated across the street from
    the parcel. The parcel is bounded on the south by a day-care
    establishment and one single-family home, on the north by
    rowhomes, a City-owned parks maintenance facility and portions of
    18
    Crestmoor Park, and on the west by rowhomes and other portions
    of Crestmoor Park. The Crestmoor Park neighborhood lies to the
    west and south of Crestmoor Park and is zoned as single family.
    South Monaco Parkway is a “residential arterial street.”
    ¶ 39   In its February 2015 Staff Report and Recommendation
    submitted to the City Council, the CPD found that the rezoning was
    consistent with many of the strategies of the Denver Comprehensive
    Plan 2000. Specifically, it found that the rezoning met the
    “Environmental Sustainability Strategy . . . by promoting infill
    development within walking distance of a mixed use area (Lowry
    Town Center) and commercial arterial (Alameda).” The CPD also
    noted that the proposed “three-story multi-unit residential
    development” was “consistent with similar multi-unit residential
    development across South Monaco Parkway while providing a
    height limit of three stories, compatible with nearby zone districts
    for single-unit residential development.”
    ¶ 40   The CPD, moreover, found that the proposed rezoning met the
    “Neighborhood Strategy . . . by providing the opportunity for a range
    of housing types in this neighborhood.” Finally, the CPD found that
    the parcel was a reinvestment area within an area of stability
    19
    because it “currently has a deteriorating and poorly maintained
    church.” It indicated that the proposed rezoning would “encourage
    reinvestment into the neighborhood, and provide[] a buffer between
    single-unit residential development within the Crestmoor
    neighborhood to the east and the additional development and
    activity along South Monaco Parkway.” The CPD added that the
    proposed rezoning would further the public health, safety, and
    general welfare of the City and encourage reinvestment in the area
    by “removing a structure on site that has been poorly maintained
    for many years.” The CPD reiterated its findings at the June 2015
    hearing before the City Council.
    A.        Standard of Review
    ¶ 41   The same standard of review outlined in Part II.A applies to
    this claim.
    B.    Applicable Law
    ¶ 42   Under the DZC, the City Council may approve a rezoning
    proposal that the City Attorney has determined is not a legislative
    rezoning if the proposed rezoning complies with the following
    criteria: (1) the proposed rezoning is consistent with the City’s
    adopted plans; (2) the proposed rezoning results in uniformity of
    20
    district regulations and restrictions; (3) the proposed rezoning
    furthers the public health, safety, and general welfare; (4)
    circumstances justify the proposed rezoning; and (5) the proposed
    rezoning is consistent with the description of the applicable
    neighborhood context and the stated purpose and intent of the
    proposed Zone District. §§ 12.4.10.7-.8. A justifying circumstance
    exists when “[t]he land or its surrounding environs has changed or
    is changing to such a degree that it is in the public interest to
    encourage a redevelopment of the area or to recognize the changed
    character of the area.” § 12.4.10.8(A)(4). Only two planning
    guidelines apply to the parcel in this case: the Denver
    Comprehensive Plan 2000 (2000), https://perma.cc/QUU7-VGUL
    (Plan), and Blueprint Denver (2002), https://perma.cc/SE82-M676.
    ¶ 43   The DZC also notes, “The Suburban Neighborhood Context is
    characterized by single-unit and multi-unit residential, commercial
    strips and centers, and office parks. . . . Multi-unit residential and
    commercial uses are primarily located along arterial and collector
    streets.” § 3.1.1.
    ¶ 44   Enacted in 2000, the guiding principles and policies
    established in the Plan (as well as those in Blueprint Denver) form
    21
    the basis for the goals and recommendations of subsequent City
    plans. The Plan identifies numerous goals, including environmental
    sustainability, adopting effective land use policies, preserving
    Denver’s legacies such as tree-lined streets, and improving Denver’s
    neighborhoods. The Plan identifies several strategies to meet these
    goals, including the following:
    • Environmental Sustainability Strategy 2-F: “Promoting infill
    development within Denver at sites where services and
    infrastructure are already in place”;
    • Land Use Strategy 3-B: Managing growth and change
    through effective land use policies, including “encourag[ing] quality
    infill development that is consistent with the character of the
    surrounding neighborhood; [and] that offers opportunities for
    increased density”;
    • Neighborhood Strategy 1-E: “Modify[ing] land-use regulations
    to ensure flexibility to accommodate changing demographics and
    lifestyles,” and “[a]llow . . . a diverse mix of housing types and
    affordable units”; and
    22
    • Neighborhood Strategy 1-F: Investing in neighborhoods “to
    help meet citywide goals and objectives for a range of housing types
    and prices, community facilities, human services and mobility.”
    ¶ 45   The City Council also adopted Blueprint Denver “to implement
    and achieve the vision outlined in Plan 2000.” Blueprint Denver, at
    3.
    ¶ 46   According to Blueprint Denver, which is considered a
    “supplement” to the Plan, “Arterials are designed to provide a high
    degree of mobility and generally serve longer vehicle trips to, from,
    and within urban areas.” 
    Id. at 51.
    “Denver’s arterial system
    interconnects major urban elements such as the central business
    district, employment centers, large urban and suburban
    commercial centers and residential neighborhoods.” 
    Id. “Arterial streets
    serve a city-wide function and are, therefore, designated
    using a broader city-wide perspective.” 
    Id. ¶ 47
      Blueprint Denver also identifies “Areas of Change” and “Areas
    of Stability.” 
    Id. at 120,
    127. The parcel here is located in an Area
    of Stability directly adjacent to an Area of Change. An Area of
    Stability aims to “maintain the character of these areas yet
    accommodate some new development and redevelopment to prevent
    23
    stagnation.” 
    Id. at 5.
    Like the Plan, Blueprint Denver identifies
    numerous strategies to meet this goal. These include: (1)
    “[a]ddress[ing] incompatible zoning and land use issues”; (2)
    “[a]ddress[ing] edges between Areas of Stability and Areas of
    Change”; and (3) encouraging “[d]iversity of housing type, size, and
    cost.” 
    Id. at 25.
    Blueprint Denver explicitly identifies a “regulatory
    toolbox” to help implement these strategies in an Area of Stability.
    See 
    id. at 123.
    One such “tool” is the use of zoning amendments to
    “create a better match between existing land uses [in an area] and
    the zoning.” 
    Id. at 124.
    ¶ 48   Blueprint Denver divides Areas of Stability into “committed
    areas” and “reinvestment areas,” although it does not identify these
    areas on a map. 
    Id. at 123.
    It defines reinvestment areas as
    “neighborhoods with a character that is desirable to maintain but
    that would benefit from reinvestment through modest infill and
    redevelopment or major projects in a small area.” 
    Id. at 122.
    Indicators of reinvestment areas within an Area of Stability include
    “deteriorated and poorly maintained housing stock,” “inappropriate
    land uses or inadequate buffering between uses,” “lack of curbs,”
    and a need to maintain affordable housing. 
    Id. at 122-23.
    24
    C.    Analysis
    ¶ 49   The district court found that the record supported the City
    Council’s determination that Cedar’s proposed rezoning was
    consistent with both the Plan and Blueprint Denver. We agree with
    its analysis.
    ¶ 50   First, the rezoning is consistent with the objectives and
    strategies of the Plan and Blueprint Denver. As the CPD found and
    some City Council members noted during the June 2015 hearing,
    the proposed rezoning allows for infill development along a
    residential arterial and near a commercial arterial, which ensures
    the availability of transit and other services. Other members also
    noted that the proposed Cedar rezoning was not too far outside the
    character of the neighborhood and it created diversity of housing
    stock in the area — which, as Council member Nevitt noted, is
    needed as Denver continues to grow, bearing in mind that the
    preservation of old neighborhoods is still valuable while preventing
    sprawl.
    ¶ 51   Further, the rezoning would revitalize the parcel, which
    contained a “deteriorating and poorly maintained church” and thus
    could be characterized as a reinvestment area in an Area of
    25
    Stability, despite the absence of a specific map designation.5
    Moreover, because the parcel is on the edge of an Area of Stability,
    with multi-family buildings across South Monaco Parkway in an
    Area of Change, the rezoning would, as some City Council members
    noted, “address the edge” to the west and create a “buffer” between
    South Monaco Parkway and the Crestmoor neighborhood.
    ¶ 52   Second, we agree with the district court that competent
    evidence in the record supports the City Council’s determination
    that the rezoning furthers the public health, safety, and general
    welfare. As noted by the district court, the CPD presented evidence
    to the City Council showing that the “redevelopment of the site
    removes a poorly maintained structure, improves character along
    Monaco, and residents have access to recreation, jobs and
    commercial activities.” The evidence also indicated that the
    rezoning would increase public safety because of the addition of
    new sidewalks.
    ¶ 53   The neighbors argue, however, that the City Council refused to
    consider the adverse traffic and parking consequences of the
    5 At oral argument, counsel for the neighbors stated that building
    has now commenced on the site pursuant to the plan approved by
    the City Council.
    26
    rezoning when it considered whether rezoning would further the
    public health, safety, and welfare. The City responds that adverse
    traffic and parking consequences are not a mandatory aspect of its
    calculus when considering a rezoning.
    ¶ 54   We agree with the district court that the consideration of the
    public health, safety, and welfare criterion may, in certain
    instances, include a review of issues relating to traffic and parking.
    See Town of Grand Lake v. Lanzi, 
    937 P.2d 785
    , 789 (Colo. App.
    1996). Further, section 12.4.10.4(G)(2) of the DZC mandates that
    the City Council shall consider “any other comments received” at a
    public hearing on a proposed zoning amendment, which, in this
    case, would include comments related to traffic and parking. We
    conclude that the City Council considered comments concerning
    the traffic and parking consequences of the rezoning.
    ¶ 55   As the district court recognized, the record shows that several
    City Council members stated that the “major issue” was traffic and
    transportation and that they “need[ed] to address it.” The City
    Council members acknowledged that Cedar had altered its original
    plans to address parking and traffic concerns by reducing the
    number of units built, increasing the number of parking spaces,
    27
    and altering the entrances to the complex to avoid disrupting
    quieter streets. Therefore, we conclude that the City Council
    sufficiently considered the traffic and transportation consequences
    of the proposed rezoning.
    ¶ 56   Finally, competent evidence exists in the record to support the
    City Council’s conclusion that justifying circumstances existed for
    the rezoning. As noted above, the DZC provides that a justifying
    circumstance exists when either the land or its surrounding
    environs have changed or are changing. § 12.4.10.8(A)(4). The
    neighbors assert that “land” refers to the overall neighborhood
    itself, rather than the parcel subject to rezoning. The City argues
    that “land” refers to the parcel.
    ¶ 57   Like the district court, we defer to the City’s interpretation for
    two reasons. First, we may defer to a government body’s
    construction of the code, as long as it is reasonable; however, we
    are not bound by it, since our review of such code provisions is de
    novo. See City of Commerce City v. Enclave West, Inc., 
    185 P.3d 174
    , 178 (Colo. 2008). Further, in reviewing the agency’s
    construction, we apply the basic rules of statutory construction.
    28
    See McCarville v. City of Colorado Springs, 
    2013 COA 169
    , ¶ 15, 
    338 P.3d 1033
    , 1037.
    ¶ 58   We conclude the City Council’s interpretation is persuasive,
    because if “land” referred to both the parcel subject to rezoning and
    the surrounding neighborhood, then the term “surrounding
    environs” would be superfluous. See Doubleday v. People, 
    2016 CO 3
    , ¶¶ 19, 20, 
    364 P.3d 193
    , 196 (When interpreting a statute, the
    court “read[s] statutory words and phrases in context” and
    “construe[s] them according to the rules of grammar and common
    usage.” It “must avoid constructions that would render any words
    or phrases superfluous or lead to illogical or absurd results.”).
    ¶ 59   Here, both the parcel and its surrounding environs have
    changed. Since Blueprint Denver was adopted, the church on the
    parcel deteriorated. At the June 2015 hearing, commentators
    observed that the church was blighted. Additionally, the area
    around Monaco Parkway has developed significantly. These
    changed circumstances were raised at the hearing before the City
    Council. We thus conclude that the City Council relied on
    competent evidence to determine that rezoning was in compliance
    with justifying circumstances.
    29
    ¶ 60   Based on the evidence in the record, we conclude that the
    neighbors have failed to demonstrate that the determination of the
    City Council was an abuse of discretion. The lengthy deliberations
    show that Council members discussed the criteria and evidence in
    the record, including testimony presented by both opponents and
    proponents at the hearing. Therefore, the neighbors have failed to
    demonstrate that the City Council’s approval of the proposed
    rezoning was arbitrary and capricious, see Puckett v. City & Cty. of
    Denver, 
    12 P.3d 313
    , 314 (Colo. App. 2000), and they have not
    overcome the presumption that the City Council’s decision was
    proper. Lieb v. Trimble, 
    183 P.3d 702
    , 704 (Colo. App. 2008).
    IV.     Unlawful Spot Zoning
    ¶ 61   The neighbors’ final contention is that the rezoning constitutes
    impermissible spot zoning because it did not further Denver’s
    comprehensive plans and thus was an abuse of discretion. We
    disagree.
    A.     Standard of Review
    ¶ 62   The same standard of review outlined in Part II.A applies to
    this claim.
    30
    B.   Applicable Law
    ¶ 63   Spot zoning examines “whether the change in question was
    made with the purpose of furthering a comprehensive zoning plan
    or [was] designed merely to relieve a particular property from the
    restrictions of the zoning regulations.” Clark v. City of Boulder, 
    146 Colo. 526
    , 531, 
    362 P.2d 160
    , 162 (1961) (rezoning of part of a
    planned residential area to allow a gas station was arbitrary). In
    other words, spot zoning “creates a small island of property with
    restrictions on its use different from those imposed on the
    surrounding property.” Little v. Winborn, 
    518 N.W.2d 384
    , 387
    (Iowa 1994) (citation omitted). If the rezoning is for the purpose of
    furthering a comprehensive zoning plan or based on changed
    conditions, the rezoning is not spot zoning. See King’s Mill
    Homeowners Ass’n v. City of Westminster, 
    192 Colo. 305
    , 312, 
    557 P.2d 1186
    , 1191 (1976); see also 3 Arden H. Rathkopf & Daren A.
    Rathkopf, Rathkopf’s The Law of Zoning and Planning § 41:8 (4th
    ed. 2016). Likewise, reclassifications when the “new use is
    consistent with others in the surrounding area” or where a rezoning
    will “allow multifamily residences within a single family zone” are
    also generally permissible. 3 Rathkopf & Rathkopf, § 41:8.
    31
    C.   Analysis
    ¶ 64   Here, as discussed above and shown on various maps
    considered by the City Council, the rezoning is not out of character
    with the adjacent area. Instead, it furthers the goals of both the
    Plan and Blueprint Denver. It “address[es] the edge” of an Area of
    Stability where hundreds of multifamily units are located directly
    across the street in an Area of Change. The approved rezoning also
    creates a “buffer” between South Monaco Parkway and the
    Crestmoor neighborhood. In addition, it will increase the “diversity
    of housing” choices. Finally, Blueprint Denver expressly recognizes
    rezoning as one “tool” for use in Areas of Stability like the
    Crestmoor neighborhood. Blueprint Denver, at 124. Rezoning is
    consistent with and contemplated by the adopted plans.
    ¶ 65   Despite the neighbors’ assertion that the parcel is in the
    middle of a single-family neighborhood, the parcel’s surrounding
    properties, including immediately adjacent properties, contain a
    variety of different zoning designations, including the same S-MU-3
    zoning. In fact, the property directly to the parcel’s south has the
    same S-MU-3 zoning. The properties across South Monaco
    Parkway are zoned R-2-A, a classification that permits multi-unit
    32
    homes. The property directly east of the parcel is home to a
    number of apartments. Only the property immediately to the
    southwest is zoned for single-family houses. Thus, rezoning the
    parcel to S-MU-3 is in line with the zoning restrictions of the
    surrounding properties.
    ¶ 66   We conclude that the new zone designation is consistent with
    the surrounding areas and does not constitute spot zoning. See 3
    Rathkopf & Rathkopf, § 41:8.
    V.   Conclusion
    ¶ 67   Accordingly, the judgment is affirmed.
    JUDGE NAVARRO and JUDGE PLANK concur.
    33
    

Document Info

Docket Number: 16CA0920

Citation Numbers: 2017 COA 47, 405 P.3d 433

Filed Date: 4/6/2017

Precedential Status: Precedential

Modified Date: 1/12/2023

Authorities (21)

Clark v. City of Boulder , 146 Colo. 526 ( 1961 )

Board of County Commissioners v. O'Dell , 920 P.2d 48 ( 1996 )

Mobile Pre-Mix Transit, Inc. v. Public Utilities Commission , 618 P.2d 663 ( 1980 )

City of Manassa v. Ruff , 235 P.3d 1051 ( 2010 )

City of Commerce City v. Enclave West, Inc. , 185 P.3d 174 ( 2008 )

Doubleday v. People , 364 P.3d 193 ( 2016 )

People v. Wallin , 167 P.3d 183 ( 2007 )

City & County of Denver v. Board of Adjustment of Denver , 55 P.3d 252 ( 2002 )

Lieb v. Trimble , 183 P.3d 702 ( 2008 )

IBC DENVER II, LLC. v. City of Wheat Ridge , 183 P.3d 714 ( 2008 )

Soon Yee Scott v. City of Englewood , 672 P.2d 225 ( 1983 )

Buck v. Park , 839 P.2d 498 ( 1992 )

Pfaff v. City of Lakewood , 712 P.2d 1041 ( 1985 )

King's Mlill Homeowners Ass'n v. City of Westminster , 192 Colo. 305 ( 1976 )

Burns v. City Council of City of Denver , 759 P.2d 748 ( 1988 )

Little v. Winborn , 518 N.W.2d 384 ( 1994 )

Alward v. Golder , 148 P.3d 424 ( 2006 )

Verrier v. Colorado Department of Corrections , 77 P.3d 875 ( 2003 )

Thomas v. Colorado Department of Corrections , 117 P.3d 7 ( 2004 )

Puckett v. City of County of Denver , 12 P.3d 313 ( 2000 )

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