Colorado

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Colorado

LAWMAKER SEEKS STRONGER CURBS ON USE OF EMINENT DOMAIN
State Representative Al White, R-Winter Park, is crafting a constitutional amendment that will place strong limitations on governments’ use of eminent domain to condemn private property for private development. If approved by two-thirds of both houses of the Colorado Legislature next spring, the question could go to voters in November 2006. White was spurred to take action following the June 23, 2005 U.S. Supreme Court decision in Kelo v. City of New London. In Kelo, the court held that the city of New London, Connecticut could condemn a number of homes and commercial buildings to make way for a private developer to redevelop the properties for economic development. For Colorado, an important issue in Kelo is that the court did not require any showing of blight or other distressed conditions as a requirement supporting the use of eminent domain and condemnation. Colorado law requires a blight designation on property before local governments’ condemnation powers can be used. Local governments only have to find half a dozen of more than two-dozen blight conditions on a subject property to secure a blight designation. At least 24 other states will consider stronger eminent domain curbs during their 2006 legislative sessions.

COMMITTEE CHAIR LOOKING TO IMPROVE STATE BUSINESS CLIMATE
Rep. Alice Borodkin, D-Denver, Chair of the legislature’s Special Committee on Economic Development is studying ways to boost Colorado’s business climate and will likely offer specific legislation in January. The Committee held its first meeting on July 26 and began exploring potential business attraction and retention incentives to make Colorado more competitive in attracting new business. The committee has been directed by legislative act “to evaluate ways to enhance the state as a prime location in which to start and grow a business.” A similar committee was formed last summer and focused on a set of tax policies and incentives; none of which were approved. Borodkin’s committee will meet through October.

COLORADO’S ECONOMIC AND REAL ESTATE PERFORMANCE IS MIXED
The statewide unemployment rate dropped to 4.9 percent in June, down from 5.3 percent in May. Boulder County saw a rise in unemployment matching the statewide rate of 4.9 percent, up from 4.4 percent in May. During the first five months of 2005 Colorado added 15,100 non-farm jobs. Colorado wages for the fourth quarter of 2003 compared to the fourth quarter of 2004 saw a 5.9 percent increase, according to a U.S. Dept. of Labor report, beating the national average of 5.7 percent. Real estate sales in resort communities are on pace to break records. Through June, home sales in Grand, Summit, Eagle, Rout, Pitkin and San Miguel counties more than 5,200 transactions have closed, totaling $2.75 billion. Brokers attribute much of the sales activity to first time second homebuyers. Colorado’s job losses in 2002 and 2003 resulted in a surplus of unsold homes in the Denver metro area, keeping downward pressure on prices that slowed appreciation to about 4 percent per year in 2004 and through June 2005. Nationwide home price appreciation is averaging 10 percent per year. Colorado ranked 47th nationally in home appreciation for the 12 month period ending on March 31, 2005.