June 18, 2019

Colorado Supreme Court: Special Districts May Assign Right to Receive Fees to Private Party

The Colorado Supreme Court issued its opinion in SDI, Inc. v. Pivotal Parker Commercial, LLC on Monday, December 8, 2014.

Powers of Local Governments.

In this case, the Supreme Court held that the Special District Act, CRS §§ 32-1-101 to -1807, gives special districts the power to assign to private parties the right to receive revenue from development fees. The Court found that the power to assign revenue falls within the express power given to districts to “dispose of . . . real and personal property.” CRS § 32-1-1001(1)(f). It also concluded that under CRS § 32-1-1001(1)(n), the Act should be interpreted as empowering a district to act, not as a limitation on powers found elsewhere in the statute. The court of appeals therefore erred in finding that the power to “pledge” under CRS § 32-1-1001(1)(j)(I) necessarily restricts the power to assign. Accordingly, the Court reversed the court of appeals’ holding and remanded the case to that court for consideration of the other issues respondent raised on appeal, including whether petitioner was entitled to increase the fees.

Summary and full case available here, courtesy of The Colorado Lawyer.

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