Agenda Date: 10/02/2018
Subject:
Title
A resolution opposing Amendment 74, an attempt to amend the Colorado Constitution to limit state and local government services at a high cost to taxpayers
Body
Presented By:
Mark Relph, City Manager
REQUESTED COUNCIL ACTION:
Does city council support approving Resolution 60, opposing Amendment 74?
BACKGROUND:
Amendment 74, drafted by out-of-state corporate interests, seeks to amend Section 15 of Article II of the Colorado Constitution to require just compensation if private property has "reduced fair market value by government law or regulation." Shrouded in simple language, Amendment 74 will have far-reaching and potentially disastrous consequences.
Under the Colorado Constitution, a property owner already has the right to seek compensation from state or local governments. Amendment 74 expands this well-established concept by requiring the government - i.e., the taxpayers - to compensate private property owners for virtually any decrease in the fair market value of their property due to any government law or regulation.
Just about any municipal action could cause a lawsuit if the effect is even the slightest drop in an individual property's "fair market value."
The obligation to compensate is triggered without regard to how long someone has owned the property or what the intentions or actions of the property owner are.
There are no exceptions for health, safety, and general welfare regulations or those actions mandated by the federal or state government.
Once passed, there is no flexibility granted to the General Assembly to implement this measure; only the Colorado Supreme Court will be left to interpret the Amendment, including what "fair market value" and "reduced" means. This litigation will come at a high cost to state and local governments, ultimately paid for by taxpayers. Decisions on key matters will come to a halt while awaiting further clarification from the courts.
The bottom line: Amendment 74 will requir...
Click here for full text