Judge sides with Lakewood in fee-in-lieu dispute over controversial apartments

The Developer of Controversial Belmar Park Apartment Project Ordered to Pay Lakewood $1.5 Million in Development Fees

The developer of a highly disputed apartment project next to Belmar Park in Lakewood, Colorado, has been ordered by a judge to pay $1.5 million in development fees.

Kairoi Residential, a Texas-based company, is building a 411-unit apartment complex on 5 acres of private property at the eastern edge of the park. The project has faced years of opposition and legal battles, leading to a change in city regulations in 2023 that required developers to allocate land for parks.

This change prompted a lawsuit from Kairoi, resulting in an injunction and eventually a decision by the Lakewood City Council to reverse the statute. Developers can now pay a fee to the city instead of setting aside parkland.

After receiving approval from the Lakewood Planning Commission, Kairoi proceeded with its project at 777 S. Yarrow St., where an office building was demolished to make room for the development.

However, Kairoi contested the amount it was required to pay Lakewood in lieu of dedicating parkland, arguing for a lower fee based on property values from 2018. The city, on the other hand, insisted on a fair market value assessment for 2025.

Following a court hearing, Judge Jason Carrithers ruled in favor of Lakewood, dismissing Kairoi’s lawsuit and bringing the case to a close. The specific reasoning behind the decision was not provided in the court order.

Legal representation for Lakewood included Geoffrey Blue and Scott Gessler from Gessler Blue, while Kairoi was represented by Jason Dunn and J. Maxwell Porteus from Brownstein Hyatt Farber Schreck.

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