Developer sues Denver, says rules threaten $20M Globeville project

Fox Street Investments LLC Files Lawsuit Against City of Denver Over Development Rules in Globeville

Fox Street Investments LLC has taken legal action against the City and County of Denver, claiming that the city’s development regulations in the Fox Island area of Globeville are unconstitutional. The company alleges that these rules have hindered its plans to move forward with a proposed 20-story, 400-plus unit apartment complex.

The lawsuit, filed in the U.S. District Court by attorneys at Ireland Stapleton, argues that Denver has neglected to invest in adequate public transportation infrastructure in Globeville, an economically disadvantaged neighborhood.

While the city has designated Fox Island as a target area for increased housing to address affordability issues, Fox Street Investments claims that the lack of infrastructure planning for the anticipated rise in traffic is a major concern.

The complaint also asserts that the city’s development rules in Fox Island unfairly burden developers and violate principles of due process and equal protection. These rules allegedly treat new developments differently from existing land users, contributing to traffic congestion in the area.

Fox Street Investments expressed a desire to work collaboratively with the city to address transportation challenges and promote housing development. However, the company claims that Denver has been unwilling to reconsider its controversial land-use regulations.

As a result of the city’s stance, Fox Street Investments’ development plans are currently stalled. The company faces uncertainty about the necessary steps to move forward with the project, as the city has refused to process further applications while the Fox Island Rules are in effect.

The delays caused by the legal dispute are reportedly causing financial harm to Fox Street Investments. The company fears that the entire investment could be at risk unless the city retracts or modifies the rules governing the property.

Despite the pending litigation, Denver has acknowledged the infrastructure concerns raised by the lawsuit. The city remains open to discussions with Fox Street Investments, although it disputes the legal basis of the claims.

Fox Street Investments owns a significant portion of land in the Fox Island area, where it had planned to develop a multifamily housing project. The company purchased the property in 2007, anticipating future growth opportunities in the neighborhood.

The Fox Island area has been identified as a growth area in Denver’s 41st & Fox Station Area Plan, encouraging higher-density development. The potential for development in the neighborhood has attracted interest from investors like Central Street Capital Inc., who see it as a promising opportunity.

Concept plans for the proposed apartment complex at 3901 Elati St. include a parking garage, a variety of apartment units, and amenity spaces. Despite the legal challenges, Fox Street Investments remains optimistic about the potential of the project and the neighborhood.

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