Colorado Mall Owners Fight Government Seizure

The owners of the Westminster, Colo.-based Westminster Mall have filed a lawsuit against the City of Westminster and the Westminster Economic Development Authority in an effort to stop the city and its urban renewal authority from unlawfully seizing control of the mall property for economic and tax revenue reasons. The mall owners are basing their case on a Colorado law that prohibits the state government from seizing private property and allowing another party to redevelop it to enhance its economic performance.

The lawsuit seeks to enjoin the City of Westminster and the Westminster Economic Development Authority’s urban renewal activities. The mall owners are also asking the court for compensation for the damage and injury they say the activities have caused.

The Westminster Mall has generated millions of dollars in tax revenues for the city since it opened more than 30 years ago. But the city has publicly expressed its dissatisfaction with the mall’s inability to sustain a steady revenue stream, and it has taken steps to seize control of the property and demolish the mall so that the land can be redeveloped in accordance with the city’s long-term vision of what it wants to build on the property. The mall owners have vowed to continue fighting against the city’s seizure of their property.