Court sides with Castle Pines in Colorado development dispute over a McDonald's
"What we want to do is avoid creating more of a traffic problem than we already have," said Douglas Gilbert, president of the Castle Pines North Homeowners Association No. 1.
Gilbert was one of many neighbors who vocally opposed the McDonald's, citing concerns over traffic, trash, noise and safety. Gilbert says the site is close to two schools, augmenting his worries about traffic and street safety. He also feels the McDonald's would not be compatible with the neighborhood.
Developer CP Commercial, which falls under the umbrella of Ventana Capital, proposed a 3,671-square-foot, two-lane drive-through McDonald's near Castle Pines Parkway and Lagae Road in the incoming Parkway Plaza. CP Commercial owns the land and was contracted to sell the property for use as a McDonalds restaurant, according to legal documents. But first, they need approval of the project's site improvement plan from Castle Pines.
Despite city staff recommending approval, Castle Pines City Council denied the site improvement plan in May of 2024, stating the plan didn't support the goals of the city or further the welfare of the community.
"I was happy in the sense that council had taken the time to dig into the file, to understand the issues and to deny the SIP... I was disappointed that it came to that and that council hadn't been supported by staff, and that staff had really dropped the ball," Gilbert said.
Neighbors like Gilbert breathed a sigh of relief -- only for CP Commercial to file a lawsuit appealing that decision, alleging council made an "arbitrary" decision to deny the plan based on public opinion.
Concerned that the city would not represent homeowners' interests due to a "public-private partnership agreement" with LS Partners LLC, Gilbert's HOA decided to join the lawsuit. LS Partners lists the same Englewood address as Ventana Capital.
"We felt that the city had a conflict of interest that it just simply could not overcome. So we decided, as a board of the homeowners association that we would intervene in the lawsuit," Gilbert said.
Castle Pines had no comment on the partnership or Gilbert's allegation of a conflict of interest.
Over a year later, a Douglas County District Court has ruled in favor of the city and HOA, stating council had "competent evidence" to deny the plan.
"The city is pleased that the District Court applied the appropriate deference to the City Council's judgment on this proposal. The city remains hopeful that future development along the Castle Pines Parkway corridor will develop in a way that best meets the needs of the community. We look forward to working with property owners and applicants on future applications," Castle Pines City Manager Michael Penny said in a statement to CBS Colorado.
"We have another 48 days to wait to see if they take it to another level at the Court of Appeals. We hope that they do not. We believe the decision that the court has rendered in this case is very well grounded and would be upheld on appeal," Gilbert said.
CP Commercial's attorney shared the following statement:
"CP Commercial is disappointed that the court declined to overturn Castle Pines' decision to deny a McDonald's after the city council caved to a vocal minority of voices and their desire for a different brand of restaurant instead of a McDonald's. The city council should not be permitted to hide behind, as the court aptly noted, factors that 'are inherently subjective.' The city's residents deserve not only the significant tax benefits that a McDonald's would bring but also additional restaurant choices. CP Commercial is exploring its options, including an appeal."
If they choose not to appeal, CP Commercial can propose another development on the land.
"I think what this has shown is creating a drive-through which brings a lot of traffic into the city isn't going to be a compatible development," Gilbert said. "We would certainly hope that our city and our city council take this in stride and see this as an opportunity to improve what they do. I think they need to do a full and thorough review of staff and staff's role in this."
The City of Castle Pines says it spent about $21,000 on the lawsuit, while the HOA says it spent about $7,000. Gilbert is still hoping that some of those costs will be recuperated.
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