The IEC Attacks Colorado Home Rule Cities And Counties

by Charles C. Bonniwell

In 1902 the Colorado voters authorized home rule governance for municipalities by amending the state constitution and extended it to counties in 1970. It allows for municipalities and counties who adopt home rule governance to act and legislate on local matters and, in general, home rule ordinances addressing local matters supersede state law. Colorado’s Independent Ethics Commission (the “IEC”) under the control of the power-hungry New York lawyer Bill Leone decided it did not like home rule cities and counties having more power than it on local ethics matters, so starting in 2015 it began to scheme on methods to put the home rule towns, cities, and counties under its oppressive yoke.

The plan was apparently to attack a small town, have it bend to the IEC overlordship, and then use that as precedent for its claim of power on all ethics issues over all home rule municipalities and counties. It was important not to attack a powerhouse like the City and County of Denver, which would have the influence and funding to fight off the rapacious IEC.

As disclosed in our prior front-page articles on the IEC, it takes only the cases it wants to take with little rhyme or reason other than increasing its power. It doesn’t want a lot of cases because it only meets once a month and has only one investigator (its Executive Director), so it restricts the cases to people and places it wants to attack, such as Secretary of State Scott Gessler, Governor John Hickenlooper, and it turns out, the City of Glendale.

2015 – The Saga Begins

Glendale was targeted because it is a small home rule municipality (population of 4,613) which has its own ethics code and complaint procedures which Commissioner Leone apparently believed would make a perfect target.

How Glendale came before the IEC was a labyrinth. In 2015 the city filed an Urban Renewal Plan for what is now known as “4 Mile District.” The owners of Authentic Persian Rugs on Colorado Boulevard, through an entity known as M.A.K. Investments, which owns approximately 3.8 acres along Cherry Creek wanted to build a massive condo building on this site which violated Glendale’s Zoning Code and Master Plan. Glendale residents nicknamed it the “Death Star Project.” The Persian rug merchants apparently believed with enough bullying they could get Glendale to bow to their plans.

Enter The FBI And The Oath Keepers

In 2015, the rug merchants went to the state, local, and national press claiming that Glendale was going to use eminent domain to condemn the rug business and surrounding acreage for the project formerly known as the Glendale 180 project. (See Fight Over future of Glendale Persian Rug store heats up, Denver Post, July 2015.) Glendale believed that no assurances to the contrary mattered as the rug merchants were simply trying to pressure Glendale to approve the “Death Star Project.”

The rug merchants engaged the Oath Keep­ers, a feared rightwing paramilitary group, to engage in an armed “shock and awe” march on Glendale City Hall and threat­en the City Council to accede to the rug merchants’ demands or face recall or worse.

At or about the same time the rug merchants began meeting with the Denver Office of the Federal Bureau of Investigation (the “FBI”) to encourage the FBI to investi­gate the City of Glendale on their behalf. It is widely believed that the FBI had infil­trat­ed, and perhaps controlled, the Oath Keep­ers a long time ago. It is not clear if the FBI helped arrange or were involved inthe armed march to threaten Glendale City Council by the Oath Keepers.

What is known is that city officials began receiving suspicious proposals from previously unknown businessmen for what could possibly lead to potential bribe attempts. One well known Glendale businessman reported to City Hall that the FBI asked him to wear a wire and attempt to bribe the mayor which he refused to do stating the mayor was not going to take bribes.

Moreover, infamous undercover FBI agent Charles Johnson came to Glendale pre­­tending to be a journalist and began harassing the city clerk and citizens who publicly opposed the “Death Star Project.” He went directly to the home of Glendale City Clerk Sherry Frame on the pretense that he had been “hired to look into an ethics complaint” against the mayor. The threats against the city clerk resulted in his arrest at the Denver International Airport. The FBI then intervened and got then Arapahoe County District Attorney George Brauchler to dismiss all charges against Johnson as a “professional courtesy.” D.A. Brauchler then publicly revealed what the FBI was up to. (See Trevor Anderson, How an Undercover FBI Agent Ended Up in Jail After Pretending to Be a Journalist, The Intercept, May 16, 2016.) The rug merchants were caught on camera meeting with FBI officials in a Denver restaurant.

The Rug Merchants’ Lawyers

– Ireland Stapleton

The rug merchants also hired the law firm of Ireland Stapleton to file a series of lawsuits in state and federal courts to tie up the city in a legal quagmire. While the lawsuits were in motion, the rug merchants, hoping the city had been sufficiently softened up, demanded a meeting with the Zoning Department bringing with them an all-star development team that included Dana Crawford, the found­er of Larimer Square, famous Denver architect David Tryba, and an RTD Director.

The meeting was openly taped with Crawford declaring “there is, you know there’s some sugar in it, a special sugar in it for the community…” When the tape was publicly revealed it was an embarrassment to the rug merchants and its team of developers. (See Wealthy Rug Merchants Plans Ex­posed, Glendale Cherry Creek Chronicle, March, 2016.)

Lawsuits Galore And Bernie Buescher

Glendale did not fold to the barrage of law­suits and Glendale eventually prevailed in all of them. (See Rug Merchants Lose All Court Battles, Glendale Cherry Creek Chronicle, December 2016.) But the one legal move made by the Persian rug merchants’ attorneys that proved to be fruitful was to bring in attorney and former interim Secretary of State Bernie Buescher of Ireland Stapleton, an expert on how the IEC can bring down political opponents. For an organization that was able to bring to heel such powerful political players as Scott Gessler and John Hickenlooper, Glendale appeared to be an easy target.

First the rug merchants had a political hit group known as Ethics Watch to file ethics complaints in Glendale against then Councilman Jeff Allen and Mayor Mike Dunafon. The complaint was based on the seemingly specious claim that both were members of the Greater Glendale Chamber of Commerce and that the city utilized and paid the Chamber as its economic development arm. The second complaint against the mayor was for breaking a tie vote involving a final zoning approval for a business which the rug merchants claimed his wife was one of the shareholders. The problem with this complaint was that the woman was not his wife and moreover another vote was taken at the next meeting without his participation.

A hearing was held with an independent attorney who investigated the matter and presented the evidence to the City Council which  in turn dismissed the complaints as frivolous.

That would appear to be the end of the matter but the rug merchants legal counsel Ireland Stapleton filed the exact same complaint with the IEC. Ethics Watch refused to file it with the IEC as it did not believe it had jurisdiction in the matter as Glendale had adopted ethics rules, and as a home rule city those applied over the IEC. Leone, however was looking for a small home rule city it could crush with massive legal bills, just as it had with Hickenlooper and Gessler.

It took seven years for the IEC to find the first complaint against Allen to be frivolous, but not frivolous against Dunafon, although they were exactly the same. Apparently, the IEC found the mayor an easier target.

Eight Years Later

After hundreds of thousands in legal bills later, Glendale is still standing for the people of Colorado and home rule. After eight years of the IEC holding hours of closed-door deliberations and refusing to make rec­ords public, the IEC has finally set a hearing for August 15, 2023. However, the Executive Director Dino Ioannides refuses to inform Glendale attorneys what the hearing will exactly be on so it can prepare witnesses.

The Colorado courts have ruled that Glen­dale cannot appeal the question of whether the IEC has jurisdiction over home rule cities until after it has been fined or oth­erwise punished by the IEC. The fines that the parties are subject to are no more than a couple of hundred dollars. So just like in the Hickenlooper and Gessler cases Glendale is forced to spend hundreds of thousands of dollars to fight the IEC power grab over a miniscule potential fine.

Bureaucratic Takeover

Since the end of Bill Leone’s reign at the IEC in 2021, there has been a power ­vacuum at the IEC pursuant to which insiders believe the bureaucratic staff of Executive Director Dino Ioannides and Senior Assistant Attorney General Gina Cannan have filled the void. The two dominate the volunteer and inexperienced commissioners and carry on Leone’s vision of an all-powerful IEC to crush political opponents for those who know how to operate inside of the bureaucratic chamber of horrors.

Cannan in particular has raised the ire of IEC observers. While in theory she has the obligation to be neutral until an investigation has taken place she does not comply and lets her biases show from the very beginning. She was caught in briefs before the investigation saying “when Mayor Dunafon is fined” which assumed his guilt even before an investigation had even occurred.

Reporters, longtime observers, and critics of the IEC are expected to attend the August 15th Glendale hearing where they expect the bias of the IEC to be on full display, along with its unceasing unethical conduct for all to see.