Boulder, Colorado – A decision by a Boulder County District Court judge has upheld the dismissal of a lawsuit challenging the City of Boulder’s financing methods for the South Boulder Creek flood mitigation project, a move that residents claim undermines their legal standing.
In an order issued on August 25, District Court Judge Michael Kotlarczyk rejected assertions from the activist group Save South Boulder, which argued that the city erroneously classified a stormwater and flood fee as a non-tax under the Taxpayer’s Bill of Rights (TABOR). The group contended that the fee was misapplied to support a $66 million bond sale designated for the project.
The flood mitigation initiative, centered on the CU South property, plays a crucial role in an annexation agreement established between the city and the University of Colorado Boulder in 2021. The project aims to construct a concrete spillway and a detention pond, designed to protect approximately 2,300 residents living within the South Boulder Creek floodplain. Environmental concerns and the potential loss of open space have fueled opposition to the initiative for years, with this lawsuit marking the latest chapter in a long-standing dispute.
Judge Kotlarczyk reaffirmed his earlier ruling from June 10, which determined that the fee in question qualifies as a legitimate charge and, therefore, falls outside the purview of TABOR. He further dismissed claims that the city acted improperly by enacting an emergency ordinance for the bond issuance, stating that judicial review of such declarations is warranted only when evidence of fraud or bad faith exists.
With the lawsuit’s dismissal now confirmed, city officials have voiced concerns that legal proceedings have stalled bond sales vital to project financing. They emphasize that any resulting delays could escalate construction costs, with ground-breaking anticipated for early 2025.
In response to the ruling, Save South Boulder has announced plans to appeal the decision to the Colorado Supreme Court. The city is now pursuing attorney fees from the plaintiffs, alleging they filed frivolous claims to obstruct the project, a request currently under consideration.
This legal battle over the flood mitigation project highlights ongoing tensions between community groups and city officials as Boulder seeks to balance developmental needs with environmental and community preservation concerns.
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