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Are neighborhood groups delaying housing growth in Colorado Springs?

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COLORADO SPRINGS — Colorado Senators are discussing a bill that would discourage neighborhood groups from fighting back against residential land use decisions.

HB24-1107 would require anyone who appeals an approved land use decision to a higher court under Rule 106 to pay the city's attorneys fees if the group loses. Under Colorado law, Rule 106 allows parties to appeal the decision of a lower body, like city council, to overturn approved projects.

This kind of appeal is often the last resort for neighborhood groups who fight back against housing projects near their homes. Jamie Nau, a resident of the Kettle Creek neighborhood in north Colorado Springs, has been battling an approved residential development that would be built in his backyard. It's called the Ovation development and would bring almost 300 homes to Old Ranch Road and Powers Boulevard.

"There's only two people in our entire neighborhood that wouldn't sign that they were against this plan," said Nau. He said the group of neighbors is opposed to the development because of their concerns about wildfire evacuation routes with only one planned egress in the area.

He plans to file a Rule 106 appeal against the Colorado Springs City Council's approval of the development's land use plan last month. Nau said the filing process has been time-consuming and costly, and could become more risky with the added possibility of having to pay the city's attorneys fees.

"It makes zero sense to me. I don't understand how it's right," he said. "I've been flying blind and going against people, the developers in the city who know this process inside and out."

Jill Gaebler, Executive Director of the Pikes Peak Housing Network, testified in support of the bill during a House committee meeting, calling some of the Rule 106 appeals "frivolous filings." The Colorado Springs Chamber and EDC also testified in favor of the legislation. Dave Dazlich, Vice President of Government Affairs for the chamber, said neighborhood groups are delaying needed housing projects and the city is seeing an increase in the weaponization of the appeal process for land use decisions.

According to quarterly reports from the Colorado Springs City Attorney's Office, there were less than a dozen Rule 106 appeals filed over the past decade. Some of the appeals were regarding residential land use decisions, like the appeal of the seven-story Creekwalk Apartments off South Nevada Avenue and and appeal of The Launchpad apartments on the city's west side. However, not all of the recorded appeals were filed by neighborhood groups appeals over land use decisions.

Dazlich said the chamber's concern lies not in the overall number of Rule 106 appeals filed, but instead the increase in appeals over the past year. This report shows five appeals filed in 2023 and two filed so far in 2024.

"This bill tells neighborhoods that if you really want to fight a land use decision to build a residential development, you better be doing it for legitimate reasons," said Gaebler. "Currently, they [neighborhood groups] file these lawsuits regularly just to delay needed projects, which only of course delays but it increases the cost of the projects and those costs are passed on to the ultimate home owner or renter."

Nau said the legislation is definitely discouraging and said it feels like legislators are "fighting against the little guy." He said if the bill becomes law, he's not sure if he and other neighbors will continue fighting back against the development.

"If I have to pay the attorneys fees on the other side, if we don't pass, if we don't win, that's very demotivating to try to do anything," he said.

HB24-1107 has been assigned to the Senate Judiciary Committee for more discussion. We'll continue to update you on its progress.
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