Fort Collins URA Considers Eminent Domain for El Palomino Motel Property Acquisition
The Fort Collins Urban Renewal Authority moved into executive session September 25 to discuss potential acquisition of property at 1220 North College Avenue, with eminent domain included as a possible tool for securing the El Palomino Motel site.
The closed-door discussion focused on developing negotiation strategies and receiving legal advice regarding the property, which sits within the North College Urban Renewal Plan area. Acting Executive Director Josh Birks confirmed that eminent domain was added to the agenda topics at the last minute, indicating the authority is exploring all available options for the acquisition.
The property at 1220 North College Avenue has been designated as blighted under Colorado's Urban Renewal Law, meeting multiple statutory criteria that allow urban renewal authorities to pursue acquisition through condemnation if necessary. The site has been subject to ongoing code enforcement actions and previous redevelopment discussions, according to Fort Collins URA documentation.
Under Colorado Revised Statutes, urban renewal authorities possess the legal power to acquire property through eminent domain, but only after demonstrating good faith negotiation efforts and following strict procedural requirements. The process requires the URA to make written offers based on fair market value and allow property owners adequate time to respond before considering condemnation proceedings.
Fort Collins URA has historically used eminent domain sparingly, treating it as a last resort after extensive negotiation efforts fail. This conservative approach contrasts with larger Colorado municipalities like Denver and Aurora, where urban renewal authorities have invoked eminent domain more frequently and faced higher-profile legal challenges.
If the authority proceeds with eminent domain, property owners would be entitled to just compensation determined by fair market value, with both parties able to present evidence in district court proceedings. The Uniform Relocation Assistance Act would also require the URA to provide relocation assistance if the property has displaced residents or businesses.
The potential acquisition appears connected to broader redevelopment efforts in the North College corridor, where the URA recently purchased the former Albertsons property at 1636 North College Avenue for $6.75 million. During the same September 25 meeting, board members discussed an innovative governance model for coordinating multiple property developments in the area.
The North College Urban Renewal Plan was originally adopted by Fort Collins City Council on December 21, 2004, establishing the framework for blight remediation and redevelopment activities funded through tax increment financing. Properties within the plan area that meet statutory blight criteria become eligible for URA intervention, including acquisition through negotiation or eminent domain when necessary.
No timeline was announced for potential action on the 1220 North College Avenue property, as discussions remain in preliminary stages. The URA board would need to pass a formal resolution declaring the need for public acquisition before initiating any condemnation proceedings, following additional good faith negotiation attempts with the current property owner.
The executive session concluded the meeting without the board reconvening in public session, leaving specific details about acquisition strategies and legal advice confidential under Colorado Open Meetings Law provisions.