Update Re capital facility fee litigation


INFORMATION TO GRANBY RANCH PROPERTY OWNERS
AND RESIDENTS REGARDING CURRENT LITIGATION

September 30, 2024

What is the Lawsuit About?

On May 26, 2023, GRCO, LLC – a property owner and taxpayer within the District – filed a complaint in the United States District Court for the District of Colorado against the District captioned GRCO, LLC v. Granby Ranch Metropolitan District, Civil Action No. 23-cv-01351-RMR-STV (the "2023 Lawsuit"). The 2023 Lawsuit challenges the District’s imposition of Capital Facility Fees pursuant to the 2006 Amended and Restated Amended and Restated Joint Resolution with Headwaters Metropolitan District establishing Capital Facility Fees (See NOTE 2) subsequent to the District refinancing its debt in May 2018. Specifically, GRCO, LLC’s complaint demands (1) declaratory and injunctive relief regarding the District’s alleged violation of the 2006 Facilities Fee Resolution, (2) declaratory and injunctive relief regarding the District’s alleged violation of CRS 32-1-1001(1)(j) by levying Capital Facilities Fees for the purpose of repaying the District’s debt, the proceeds of which GRCO claims funded public infrastructure that did not benefit GRCO’s lots, (3) declaratory and injunctive relief for depositing Capital Facility Fees into the District’s general fund in alleged violation of CRS 29-1-803(1), (4) declaratory and injunctive relief due to the District allegedly materially modifying the District’s Service Plan by levying Capital Facility Fees allegedly not allowed per the District’s service plan, (5) damages under 42 USC 1983 for the District’s alleged violation of GRCO, LLC’s rights under the Fifth Amendment to the United States Constitution, (6) declaratory and injunctive relief for the District’s alleged continuing violation of 42 USC 1983 and the Fifth Amendment to the United States Constitution, (7) damages for the District’s alleged Due Process violations under the United States and Colorado Constitutions and damages under 42 U.S.C. § 1983, (8) declaratory and injunctive relief for the District’s alleged continuing Due Process violations of the United States and Colorado Constitutions and attorneys’ fees under 42 U.S.C. § 1983 and (9) declaratory and injunctive relief to prevent the District’s collection of Capital Facilities Fees under the alleged extinguished 2006 Facilities Fee Resolution. GRCO, LLC is seeking relief including a return of $125,100 in Capital Facility Fees it has already paid to the District.

On February 26, 2024, District Court dismissed four of GRCO’s nine claims (i.e. claims 3, 4, 6 and 9).

On March 22, 2024, GRCO amended it complaint and added an additional claim - declaratory and injunctive relief for the District’s alleged violation of C.R.S. § 32-1-503 and the 2006 Facilities Fee Resolution by collecting capital facility fees on lots located outside of the District’s service boundaries (but still subject to the District’s 2018 Bond debt lien).

The District believes that the claims asserted in the 2023 Lawsuit are without merit under Colorado law that allows the District to assess and recover fees to defray the cost of public improvements. The District further believes that the claims are time-barred by the statute of limitations. The District intends to assert other defenses and to seek prompt dismissal of the action. Assessing and predicting the outcome of this matter involves substantial uncertainties. The District believes no amount is due to GRCO, LLC and denies any wrongdoing. It remains possible that despite the District current belief, material differences in actual outcomes or changes in the District’s evaluation or predictions could arise that could have a material adverse effect on the District’s financial condition, results of operations, or cash flows.



Legal Filings - Capital Facility Fees

The following legal filings are related to GRCO LLC's complaint filed against the District in Federal District Court on May 26, 2023 regarding the Capital Facility Fees

  • All Documents
    • Legal Filings - Capital Facility Fees
      • Legal Filings (43)
 Document NameViewsSizeUploaded On
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1078656132239 01 - GRCO Complaint vs GRMD Re Capital Faility Fees (05-26-23) 01 - GRCO Complaint vs GRMD Re Capital Faility Fees (05-26-23)123300 KB01_-_grco_complaint_vs_grmd_re_capital_faility_fees_(05-26-23).pdf6/15/2023
2078849232239 01 - Exhibits to GRCO Complaint vs GRMD Re Capital Faility Fees (05-26-23) 01 - Exhibits to GRCO Complaint vs GRMD Re Capital Faility Fees (05-26-23)617 MB01_-_exhibits_to_grco_complaint_vs_grmd_re_capital_faility_fees_(05-26-23).pdf6/22/2023
3078848832239 02 - Entry of Appearance - William O'Connell (06-21-23) 02 - Entry of Appearance - William O'Connell (06-21-23)33105 KB02 - Entry of Appearance - William O'Connell (06-21-23).pdf6/22/2023
4078848932239 03 - GRMD Motion for Extension of Time to Respond (06-21-23) 03 - GRMD Motion for Extension of Time to Respond (06-21-23)38118 KB03 - GRMD Motion for Extension of Time to Respond (06-21-23).pdf6/22/2023
5078849032239 04 - Order granting Mtn for Extension of Time (06-21-23) 04 - Order granting Mtn for Extension of Time (06-21-23)4014 KB04 - Order granting Mtn for Extension of Time (06-21-23).pdf6/22/2023
6079348832239 05 - Amended GRCO Complaint vs GRMD Re Capital Faility Fees (07-12-23) 05 - Amended GRCO Complaint vs GRMD Re Capital Faility Fees (07-12-23)43343 KB05_-_amended_grco_complaint_vs_grmd_re_capital_faility_fees_(07-12-23).pdf7/13/2023
7079762332239 06 - Districts Motion to Dismiss Complaint (07-28-23) 06 - Districts Motion to Dismiss Complaint (07-28-23)105200 KB06 - Districts Motion to Dismiss Complaint (07-28-23).pdf7/30/2023
8079762432239 07 - Districts Motion to Stay (07-28-23) 07 - Districts Motion to Stay (07-28-23)52137 KB07 - Districts Motion to Stay (07-28-23).pdf7/30/2023
9079800632239 08 - Scheduling Notice (07-31-23) 08 - Scheduling Notice (07-31-23)20163 KB08_-_scheduling_notice_(07-31-23).pdf8/1/2023
10080106232239 09 - District Settlement Offer to GRCO LLC (08-14-23) 09 - District Settlement Offer to GRCO LLC (08-14-23)77105 KB09_-_district_settlement_offer_to_defendants_(08-14-23).pdf8/15/2023
11080106432239 10 - Plantiff Opposition to Defendants Motion to Stay (08-11-23) 10 - Plantiff Opposition to Defendants Motion to Stay (08-11-23)30220 KB10_-_plantiff_opposition_to_defendants_motion_to_stay_(08-11-23).pdf8/15/2023
12080134532239 11 - Plantiff Req to Extend Filing Response to DIstricts Motion to Dismiss (08-14-23) 11 - Plantiff Req to Extend Filing Response to DIstricts Motion to Dismiss (08-14-23)34179 KB11_-_plantiff_req_to_extend_filing_response_to_districts_motion_to_dismiss_(08-14-23).pdf8/16/2023
13080254732239 12 - Defendants Response Supporting Its Motion to Stay (08-18-23) 12 - Defendants Response Supporting Its Motion to Stay (08-18-23)89176 KB12_-_defendants_response_supporting_its_motion_to_stay_(08-18-23).pdf8/21/2023
14080340332239 13 - Scheduling Conference Notice (08-23-23) 13 - Scheduling Conference Notice (08-23-23)45110 KB13_-_scheduling_conference_notice_(08-23-23).pdf8/24/2023
15080484832239 14 - GRCO Unopposed Motion to Exceed Page Limit (08-29-23) 14 - GRCO Unopposed Motion to Exceed Page Limit (08-29-23)35181 KB14 - GRCO Unopposed Motion to Exceed Page Limit (08-29-23).pdf8/31/2023