Building Blocks for Public Financing

Colorado Supreme Court hears long-awaited oral arguments in Landmark Towers case

Last week the Colorado Supreme Court heard arguments in a notorious lawsuit that has alleged fraud and deception in a Greenwood Village residential community that never got built and froze pending bond sales in metropolitan tax districts around Colorado.

The court heard oral arguments Wednesday in UMB Bank v. Landmark Towers Association, which has set a group of condominium owners in Greenwood Village against the organizers of a special tax district intended to fund the building of a new residential complex nearby.

The events leading to the oral arguments date back to 2007. A group of six organizers led by developer Everest Marin voted to create the Marin Metropolitan District and approve bond issuances and property taxes to finance the infrastructure of the European Village, a planned residential community near the Landmark Towers condominiums and retail space. The special district included the Landmark Towers, which had not yet been fully developed and had buyers under contract to purchase condos and pay prorated property taxes upon closing.

Landmark’s future property owners were not notified of the votes to create the special district or issue the bonds and levy property taxes to repay them. They brought suits in 2011 through the Landmark Towers Association both to invalidate the creation of the district and the approval of the bonds and taxes, saying they were cut out of the approval process as eligible electors and that the six organizers were not eligible electors.

To read this story and other complete articles featured in the September 25, 2017 print edition of Law Week Colorado, copies are available for purchase online.