Wheat Ridge defends new lawsuit, sort of

The city of Wheat Ridge is fighting a developer’s lawsuit by arguing that the city is able to set its own tax incentive rules and requirements, even if one of those requirements might turn out to be unconstitutional.In November, voters approved Issue 300 — a voter initiative that would force voter approval of future redevelopment projects receiving more than $ 2.5 million in tax increment financing from the city. Issue 300 specifically included a clause applying the rule retroactively back to March 1, 2015.Last month, the development company behind the Wheat Ridge Corners development, which includes plans for a 40,000-square-foot Wal-Mart grocery store and 37 town homes, filed a lawsuit in district court against the city. The project received $ 6.2 million in tax increment financing assistance from the city.The lawsuit had two points: First, that the plan was approved prior to March 1, and therefore should not be held to the requirements of Issue 300; and second, that passing a retroactive law like Issue 300 is prohibited under the state constitution.Last week the city’s law firm filed a response, arguing that the city has the authority to apply its own rules regarding development rules and tax increment financing, as listed in the 38th Avenue Corridor Redevelopment Plan, and by the city’s charter.However, on the second question of whether Issue 300 is constitutional or not, the city is remaining neutral, offering no defense.”This is an important issue for the city and for our citizens, and we look forward to the lawsuit being resolved,” City Manager Patrick Goff said in a statement.Requests to speak further with the city were denied.Wheat Ridge Mayor Joyce Jay and city officials have criticized Issue 300 as being bad for the future of the city.No trial date has yet been set.