As the Denver Broncos eye a new stadium site in Denver’s Lincoln Park neighborhood, questions are heating up over how the land will be assembled and whether Colorado’s strict eminent domain laws could block the stadium.
The Denver Post turned to Robinson & Henry Real Estate Partner Peter Towsky for clarification on the legal obstacles in the article Denver Water's effort to free up land for stadium could hit roadblock in condemnation laws.
Towsky provides insight into what could be a major stumbling block for the development. Colorado’s Constitution and statutes make it tough to use public power to benefit private profits.
“The key issue comes down to whether this is for public infrastructure or deemed to benefit a private party. Colorado state law is pretty clear on that,” Towsky told The Denver Post. “There is a potential trial awaiting each of these eminent domain takings.”
The Broncos have been quietly assembling parcels around Burnham Yard, a 58-acre former rail yard owned by the Colorado Department of Transportation. While the team hasn’t announced a location, at least 13 properties have already been purchased, requiring sellers to sign nondisclosure agreements.
But the project may need more than what the team has quietly acquired. Adjacent to Burnham Yard is Denver Water’s 36-acre campus, and the utility has sent “notices of intent to acquire” to roughly two dozen surrounding properties.
Towsky told The Denver Post that if Denver Water acquires land to replace land sold to the Broncos, it could breach Colorado law.
“There are some seemingly legitimate questions that could be raised in a challenge over this,” he said. “The leverage lies with the property owners. If they challenge any of this in court, the public use aspect, that will delay things significantly.”
Though Denver Water insists these acquisitions are voluntary and unrelated to the Broncos, the utility hasn’t denied it might sell land to facilitate a stadium build. That’s where the legal friction begins.
The stakes are also high for property owners. Towsky noted that owners who hold out might earn more in the long run as the neighborhood redevelops.
With Colorado’s protections against using eminent domain for private development, any attempt to force sales could trigger a series of courtroom challenges. Towsky warns that if Denver Water’s acquisitions are tied too closely to the Broncos’ plans, property owners have a strong legal foundation to fight back.