The Source Hotel in RiNo complains cement plant dust spreading to nearby lofts

RiNo’s Source Hotel Claims Neighbor Still Sending Dangerous Dust Its Way

Settlement talks have failed, and with a trial just two months away, the Source Hotel in RiNo asserts that it has security footage proving its neighbor is still sending harmful dust in its direction.

During a hearing on Feb. 11, lawyer Stacy Carpenter stated, “The security camera at the Source has been capturing these emissions. Thousands and thousands of hours of surveillance.” She added, “We did not have this level of evidence of ongoing emissions until we reviewed all of the camera video that has recently come together.”

Mountain Cement Co., the long-time operator of a plant located to the east of the Source, was sued last year by the Source’s owners for $3.2 million. The Source claims this amount is necessary to repair damage to its HVAC systems caused by cement dust emissions exceeding state limits.

Mountain Cement has refuted these claims, insisting they are exaggerated, and has assured Judge Sarah Wallace that they are collaborating with state regulators to reduce emissions. Despite Wallace’s ruling last spring in favor of the plant, declining to impose further limits on Mountain Cement emissions, the Source is now reporting another surge in dust at its food hall and market, while Mountain Cement continues to dispute these allegations.

“What’s really happening is they are trying to gain leverage that they have not previously had through these last-minute claims,” stated MCC attorney Mark Champoux on Feb. 11.

The Source, acquired by Stockdale Capital Partners for $70 million in 2022 from RiNo developer Zeppelin, is seeking permission from Wallace to pursue punitive damages against Mountain Cement. They point to internal emails from Mountain Cement revealing complaints from residents of Silver Square Lofts, located farther from the plant than the Source, regarding dust issues.

One resident named Kimberly expressed concerns about the health risks associated with breathing in cement dust and received a response from MCC offering free car washes, attributing the issue to an operational anomaly. The Source also obtained a complaint from one of its guests who witnessed dust plumes from Mountain Cement entering his room and raised concerns about the dust contaminating the food served at the hotel.

Wallace is expected to make a decision in early March regarding the Source’s request for punitive damages at the trial in April. If granted, the trial will be rescheduled after Wallace transitions to a different division of the Denver District Court as part of a routine rotation. Mountain Cement suspects the Source may be delaying proceedings, as Wallace had previously ruled against the hotel.

“I’ll be frank, your honor: We are apprehensive that the plaintiffs are seeking a different decision-maker in this case, whether that be a jury or a different judge,” Champoux expressed.

“There is no doubt that Ms. Carpenter does not want me to preside over this case,” sarcastically remarked Wallace during the recent hearing. “Everyone wants me to oversee every case.”

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