The URL can be used to link to this page

Home My WebLink AboutLETTER 325 James Street 2013-06-04GREGORYA.WHITEAttorneyatLawNorthParkPlace1423West29t1Street970/667-53105fYelandColorado80538Fax970/667-2527June4,2013TownofEstesParkAttn:AlisonChilcoff,CommunityDevelopmentDirectorPCBox1200EstesPark,CC80517DearAlison:YourequestedthatIprovideyouwithawrittenlegalopinionregardingtherequestbytheowner,MarkAdelmann,ofasingle-familyresidencelocatedat325JamesStreetinEstesParktooperateabedandbreakfastinthesingle-familyresidence.Myopinionisbaseduponthefollowing:1.Thereisasingle-familyresidenceanddetachedaccessorydwellingunitlocatedonthepropertyat325JamesStreet.2.ThepropertyiszonedE-1Estate.3.OnAugust17,2009,writteninquirywasmadetotheDepartment,copyattached,requestingclarificationoftheowner’sintenttorenovateandthenoperateabedandbreakfastfacilityatthislocation.4.TheCommunityDevelopmentDepartmentrespondedtotheletterbyanemailfromDaveShirkstating“IspokewithourDirectoraboutthis,andIunderstandhehasapprovedthisrequest”.5.AtthetimeoftheAugust17,2009letterandAugust21,2009reply,thechangetotheEstesValleyDevelopmentCodeprohibitingbedandbreakfastintheE-1EstateDistrictwasintheprocessofbeingreviewed.6.In2010,anamendmentwasapprovedtotheEstesValleyDevelopmentCodeprohibitingtheuseofresidentialpropertiesasbedandbreakfastfacilitiesintheE-1EstateDistrict. 7.BetweentheresponsetotheletterbytheCommunityDevelopmentDepartmentandthedateofthisletter,8buildingpermitshavebeenissuedbytheDepartmentforrenovationtothesingle-familyresidence.InColorado,therearetwolegalcausesofactionwhicharefiledbypropertyownersagainstmunicipalitieswithregardtoreliancebypropertyownersonstatementsmadebymunicipalofficialswithregardtolawfulusesofproperty.Thetwotypesoftheoriesarebothbaseduponthelegaltheoryofestoppel.Estoppel,simplyput,isalegalactionwherethecourtprevents(estops)thegovernmentfromenforcingthetermsandconditionsofitsadoptedrulesandregulations.Therearetwotypesofestoppel,onebasedonpromissoryestoppelandtheotheronequitableestoppel.PromissoryEstoppel.Promissoryestoppelrequiresarepresentationmadebyamunicipalemployee/official;thepropertyownermustthenreasonablyrelyontherepresentationtotheowner’sdetriment;andtheinitialrepresentationwaseitheramisrepresentationoranegligentrepresentationoftheruleorregulationinquestion.Atsomepointthemunicipalitythenpreventedthepropertyownerfromusingthepropertyinconformancewiththemisrepresentedruleorpolicy.EquitableEstoppel.Equitableestoppelrequiresarepresentationmadewhichisconsistentwithamunicipality’szoningcodeorpolicy;theownermustthenreasonablyrelyuponthatrepresentation;andeitherpurchasethepropertyand/ormadeimprovementsinrelianceonthatrepresentation.Achangeinpolicythenoccurredandthepropertyownerwasdeniedtheuseofthepropertythathadpreviouslybeenrepresentedasbeingallowed.Duetothefactthatpromissoryestoppelisbaseduponamisrepresentationornegligentstatement,Coloradocourtshaveruledthatthiscauseofactionisatort.TheColoradoGovernmentalImmunityActprovidesimmunitytogovernmentsfortortclaims.Thecourtshaveconsistentlydismissedanyclaimagainstmunicipalitiesbaseduponthetheoryofpromissoryestoppel.Thecourtshaveupheldclaimsagainstmunicipalitiesforequitableestoppel.ThemaincaseisKohnv.CityofBoulder,919P.2d822,(Cob.App.1995).ThiscaseconcernedadevelopmentpolicyintheCityofBoulderwhichaddressedcontiguousnon-conforminglots.ThepotentialpropertyownerwasassuredbytheCitythatthetwocontiguousundevelopedlotswouldbeabuildingsiteundercurrentlandusepolicies.Thepropertyownerpurchasedthetwolots,andtheCityofBoulderchangedthepolicy.Underthenewpolicy,thelotswerenotallowedtodevelop.TheColoradoCourtofAppealsheldthatequitableestoppelwasanappropriateremedyforthisfactualscenario.IntheJamesStreetpropertycircumstances,therewasnonegligentormisrepresentationofthestatusoftheproperty.Abedandbreakfastuseatthetimeof theletterandemailresponsewasallowed.However,atnotimewasthepropertyownernotifiedthatapossiblechangeintheEstesValleyDevelopmentCodeprohibitingbedandbreakfastuseintheE-1EstateDistrictwasbeingreviewedandmaybeadoptedinthenearfuture.Thepropertyownerthenappliedforandreceivedaseriesofbuildingpermitstorenovatetheproperty.Inmyopinion,iflitigationwasinstitutedagainsttheTownonthebasisofequitableestoppel,theTownmayfaceanadverseresultinthelitigation.TheCourtmayfindthattheTownisestoppedfromdenyingtheuseasabedandbreakfastasarepresentationwasmadetothepropertyowner,andthepropertyownerreliedonthatrepresentationtothepropertyowner’sdetrimentthroughaseriesofrenovationstotheproperty.Theonefactthatisparticularlyproblematicalisthat,atthetimeoftheletterandresponse,theCommunityDevelopmentDepartmentwasawarethattheEstesValleyDevelopmentCodemaybechangedtoprohibitbedandbreakfastfacilitiesintheElEstateDistrict.Atnotimewasthepropertyownerinformedthatthiswasapossibility.AcourtdecisionwouldprobablyinvolvetheissuanceofamandatoryinjunctionrequiringtheTowntoissueabusinesslicenseandallowthepropertytobeusedasabedandbreakfast,plusthepossibilityofdamagesagainsttheTownforthelossofincomeduringtheperiodoftimethepropertyisnotallowedtobeoperatedasabedandbreakfast.Thisloss,asequitableestoppelisacontractbasedclaim,maynotbecoveredbyCIRSA.Ifyouneedanythingfurther,pleaseletmeknow.VryTrulyYours,1rgoryA.WhiteGAW/ldrCC:FrankLancaster August17,2009Mr.DavidW.Shirk,AICPTownofEstesPark—CommunityPlanningDepartmentP.O.Box1200EstesPark,CO80517Re.VacationHome—325/327JamesStreetMr.Shirk,Iaminreceiptofyourletterofexplanationregardingmyapplicationforabusinesslicensetotemporarilyutilizethecottageat327JamesStreetasavacationrental(copyattachedforconvenience).Iunderstandmoreclearlynowtheexistingdevelopmentcodeanduserestrictionsinplace.Earlythisyearpriortoourpurchaseourrealtorarrangedaconversationwiththeplanningdepartmentregardingourintentionovertimetorenovateandutilize325JamesStreetasahistoricbedandbreakfastfacility.AtthattimeIhadconcluded,perhapsincorrectly,thatwewouldbeableto‘rent’eitherthemainhouseorthecottage,butnotboth.Regardless,havingboughttheproperty,wehaverenovatedthecottage(327James)firstasitwasasmaller,containableproject.Havingvirtuallycompletedthatrenovation,ourhopewastoputthecottageintotheweeklyrentalpoolthroughPonderosaRealtyasameanstoprovidesomeincomefromthepropertyoverthenext18—24monthswhilewerenovatethemainhouseat325James.Duringtherenovationof325Jamesitwillbeunoccupied.Atnotimewouldbothdwellingsbeconsideredforrental.Understandingtherulesandpurposefortherules,Iwashopingwemightbeabletoobtainatemporary(orrevocable)licensetodoweeklyrentalsat327James(thecottage)untiltherenovationsarecompleteat325James.Atthattimewewouldceaserentingthecottageandobtainalicensetooperate325Jamesasabedandbreakfastinconformitywiththecoderules.for‘control’purposes,partofgrantingthebusinesslicensefor325Jameswouldberevocationof327James.Thepurposeofthisletterwastotrytoclarifyourintentandseeifthiscouldbeaccomplished,andtoinquireabouttheprocessfordoingthat.Wewouldverymuchappreciateyourreconsiderationofthisrequesi.andlookforwardtoyourreply.Ihavelistedourmailingaddressbelow,howcvcr,ifitwouldbehelpfultodiscussanymatterbyphoneIcanbereachedat303-312-5122duringtheday,orviae-mailatrnmadelmann@rnsn.com.Thankyouforyourconsideration.Regards,/1.4iMarkM.Adelmann7092SEudoraStCentennial,CO$0122 2.Allvacationhomesshallalsobesubjecttothefollowing:a.Occupancy.(1)MaximumOccupancy.Nomorethaneight(8)individualsshalloccupyavacationhomeatanyonetime.Thismaximumallowableoccupancyshallbefurtherlimitedbyamaximumoftwo(2)individualsperbedroomplustwoindividuals.(2)NumberofParties.Vacationhomesshallberented,leasedorfurnishedtonomorethanone(1)party.Ownersofthevacationhomeshallnotbepermittedpythevacationhomewhile]ifreseñtEb.HomeOccupations.Homeoccupationsshallnotbeoperatedonthesiteofavacationhome,norshallvacationhomesofferancillaryservicestoguests.(See§5.2.B.2.d).Norecreationalvehicle,asthesameisdefinedinChapter13oftheEstesValleyDevelopmentCode,shallbeusedforlivingorsleepingpurposesorasastore,officeorplaceforthecarryingonofabusiness,tradeorprofessionwithintheTown,unlessitislocatedinanapprovedorlegalnonconformingRVparkpursuanttotheapplicabletermsoftheEstesValleyDevelopmentCode.(EstesParkMunicipalCodeChapter10.16.010(b)Foradditionalinformation,pleasefeelfreetocontactstaff.YoucanalsorefertoEstesValleyDevelopmentCode,includingtheabove-referencedSection5.1.B,ontheTownwebsiteathttp://www.estes.org/comdev/devcode/default.aspxandcanfindbusinesslicensingregulationsforpropertieswithinTownlimitsintheEstesParkMunicipalCodeChapter5.20BusinessLicensesontheTownwebsiteathttp://www.estes.orqrrownClerkimunicode/.Ihavereadandunderstandthetermsoftheforegoingdocument.2e,?t7Ad’JkYqJl1)PrintNameSignatureDatPage3of3RevisionDate:April1,2010