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1405 Hotel, LLC v. Colorado Economic Development Commission

Citation: 2015 COA 127Docket: 14CA1613

Court: Colorado Court of Appeals; September 10, 2015; Colorado; State Appellate Court

Original Court Document: View Document

Narrative Opinion Summary

The case involves a dispute where eleven hotels challenged a tax subsidy awarded to Aurora by the Colorado Economic Development Commission (CEDC) under the Regional Tourism Act (RTA). The Hotels contended the CEDC's decision to approve an $81 million tax subsidy for a tourism project was improper. The trial court dismissed the Hotels' complaint due to a lack of standing, a decision upheld by the Colorado Court of Appeals. The appellate court agreed that the Hotels' alleged economic harm was indirect and insufficient for standing, as it stemmed from lawful competition rather than direct actions by the CEDC or Aurora. Procedurally, the court addressed whether the Hotels timely filed their complaint, ultimately concluding that the final agency action occurred in October 2013 when the CEDC formalized its approval, thus rendering the complaint timely. The case explores issues of standing, final agency action, and the timeliness of judicial review, emphasizing that indirect economic impacts do not confer standing under Colorado law. The court upheld the trial court's rulings, affirming the dismissal of the Hotels' claims for lack of standing while acknowledging the procedural propriety of the complaint's timing post-final agency decision.

Legal Issues Addressed

Final Agency Action for Judicial Review

Application: The court determined that the CEDC's decision regarding Aurora's RTA award was not final until October 2013, ensuring the Hotels' complaint was timely.

Reasoning: The conclusion reached is that final agency action did not occur until October 2013, when the CEDC adopted a resolution formalizing the award terms.

Jurisdiction of Trial Court

Application: The trial court retained jurisdiction over the Hotels' prematurely filed complaint once the CEDC's decision became final.

Reasoning: The trial court acquired jurisdiction in October 2013 when the CEDC finalized its approval of the RIDA/Marriott Project.

Standing in Legal Proceedings

Application: The Hotels lacked standing to challenge the CEDC's decision because their alleged economic harm was indirect and incidental to the CEDC's actions.

Reasoning: The Hotels argued that the trial court erred in determining they lacked standing for their claims, asserting direct economic harm from the CEDC's approval of a competing project, which they believed sufficed for standing. However, the court disagreed, stating that the alleged harm was indirect due to the CEDC's and Aurora's noncompliance with the RTA.

Timeliness of Judicial Review

Application: Despite differing views on when final agency action occurred, the court found the Hotels' complaint was timely filed.

Reasoning: Regarding timeliness, the Hotels' complaint filed in September 2013, before finality was established, does not render the complaint untimely.