Tumultuous Meeting Ends In Compromise

by Mark Smiley | May 22, 2015 | Main Articles

Glendale Reauthorizes Eminent Domain But With Restrictions

by Mark Smiley

The Glendale City Council reauthorized its urban renewal authority with the power of eminent domain, but with various restrictions by unanimous vote on Tuesday, May 12, 2015. The City Council meeting was jam-packed with television cameras from every local news station lining one wall, reminding some veteran observers of council meetings in the late 1990s when meetings were known as the “Tuesday Night Fights.”

Some city officials were surprised by the vehemence and vitriol of the meeting which, in their minds, was simply reinvesting its urban renewal authority with eminent domain authority which it has previously done in 2004 and again in 2013.

Officials also expressed dismay that articles in the media wrongly indicated that property can be taken without paying the landowner full and fair compensation as determined by a Colorado court. They also noted that the notice applies to the entire 42 acre parcel of land and not a single property.

However, the wealthy and influential Kholghy family from Iran, who owns Authentic Persian and Oriental Rugs, viewed the notice of reauthorization as a precursor to condemnation of their business and the five acres it owns along Colorado Boulevard and East Virginia Avenue.

The Kholghys, as M.A.K. Investment Group, LLC, having retained two high-priced Denver law firms, sued the city’s urban renewal authority in Arapahoe County District Court, asserting abuse of governmental due process. In the complaint the law firms argued that the Kholghys rather than Wulfe & Co., a Houston, Texas developer, should have been chosen to redevelop the entire 42 acre parcel of land, notwithstanding the fact that the Kholghys do not have any experience as developers. Glendale 180, formerly known as the Riverwalk, has been years in the making and will be a dining and entertainment district along Cherry Creek. The Kholghys have also retained the non-profit Virginia-based law firm Institute for Justice who sent attorney Phil Applebaum to the meeting. “They have a right to keep what they’ve worked so hard to own,” said Applebaum.

City representatives pointed out that the Kholghys bought the land in 2006 in order to profit from the redevelopment, and they acquired the land two years after the area was declared blighted and an urban renewal authority had been set up.

For added heft and muscle, the Kholghys engaged the Oath Keepers, a paramilitary militia organization of current and former U.S. military and law enforcement members who assert that they will disobey any orders that they are given if they believe it violates the U.S. Constitution. Former presidential candidate Pat Buchanan said of the Oath Keepers that “depending on where one stands, {they] are either defenders of liberty or dangerous peddlers of paranoia.”

At the meeting an Oath Keeper representative emphatically noted they had been a prominent part of the Bundy Ranch standoff in Nevada and the Ferguson, Missouri, demonstrations. The Oath Keepers demonstrated outside of city hall before the meeting on behalf of the Kholghys forcing attendees to walk through their lines to get to the meeting. One agitated attendee at the meeting wondered out loud, “Is it the Constitution of the United State or that of Islamic Republic of Iran that these guys are trying to intimidate the residents of Glendale into obeying. Who will the Kholghys bring in next to threaten everyone — biker gangs? Glendale residents don’t particularly like to be pushed around and intimidated so the Kholghys can hold up the city. Is this how they think this country works?”

The Kholghys also brought scores of its customers and acquaintances to the meeting from around the metropolitan area that generally excoriated the council and Mayor Mike Dunafon. None of their supporters were from Glendale.

The Oath Keepers originally indicated that they would attempt to recall anyone who voted for the reauthorization. The only actual resident of Glendale to speak, Doug Turner, praised what the city council was trying to accomplish in the small municipality.

Jimmy O ‘Connor, the owner of the property prior to his sale to the Kholghy family in 2006, said at the meeting that the Kholghys bought it from him for $6.5 million. The family indicated to the media it has offers for the property from third parties in the $20 million range. Upon conclusion of the meeting, Mayor Dunafon said they should accept one of the offers if they thought they could get that price. Local experts anticipated that the land was likely worth approximately $12.5 million. An independent appraisal has been ordered by the city.

After several hours of comments Mayor Pro Tem Paula Bovo stated, “The reason we have everybody in the room tonight is because eminent domain is a scary thing. If we can add an extra layer of security without compromising the entire project, I would be willing to do that. … I will do everything in my power to make sure it doesn’t come down to the big threat, the big stick of eminent domain.”

Bovo suggested a compromise whereby the City Council would approve the reauthorization resolution but with restrictions on the urban renewal authority. The city would act in good faith and make a full and fair effort to come to an agreement with any landowner prior to eminent domain.

After consultation with local legal counsel, attorneys for the city and the Kholghys, and Jody Alderman of the law firm Alderman Bernstein drafted an amendment which, among other items, requires the city to enter into mediation with a landowner. The mediator is to be chosen by the landowner but the cost would be borne by the city.

The compromise appeared to be generally acceptable to the main parties involved that night. However, Nasarin Kholghy was a guest on the Fox & Friends television show the following morning and demanded the city abolish the possibility of eminent domain regarding Glendale 180.

After the meeting Mayor Dunafon stated in interviews with local television stations that the city did not want to condemn anyone and did not anticipate the city doing so. “You can’t start the process and even enter into negotiation until the authority is empowered, and by the way, it doesn’t mean the authority ever has to use condemnation and it probably never will,” said Dunafon.

Dunafon generally received high marks from some attendees for facilitating and allowing attendees who wanted to speak an opportunity to do so and for maintaining an equitable demeanor notwithstanding the highly personal nature of some remarks by Kholghy supporters.

One Glendale resident who requested anonymity for fear of retaliation from the Kholghys and their militia supporters concluded, “Ali and Saeed push Nasarin out front and like to pretend to the press that they are victims. By threatening residents with a paramilitary demonstration of force shows who they really are. They know how to work the legal system, the press and everyone else, but in the end they will do anything to anybody to get their way.”

Major Revolt In Quiet Denver Election

by Mark Smiley | May 22, 2015 | Main Articles

O’Brien Upsets Nevitt For Auditor

Kashmann Upsets Adams In District 6

Shepherd First Incumbent To Lose In 28 Years

New And Jones In Runoff On June 2

by Charles C. Bonniwell

The City and County of Denver’s municipal election on May 5, for mayor and all 13 council seats was considered relatively tame since incumbent Mayor Michael Hancock had no major opposition, but beneath the surface a major revolt appears to be gaining momentum which may be culminated in the four runoff elections on June 2. Hancock, and the real estate developers and unions that support him, had recruited a series of candidates and lavished them funding and logistical help. Many of them were also endorsed by The Denver Post which has strongly backed the mayor ever since he assumed office, and after an early dispute over whether the mayor had been a client of a prostitution ring known as Denver Players/Denver Sugar.

Perhaps the most surprising upset occurred in the Auditor’s race where former Colorado State Auditor Timothy O’Brien won by six percentage points over Councilman Chris Nevitt. The councilman was strongly backed by Mayor Hancock and his financial supporters along with outgoing auditor Dennis Gallagher. Nevitt raised close to $400,000, much of which came from unions, real estate developers and lobbyists, such Marcia Garcia Berry of CRL Associates who was Nevitt’s campaign treasurer. Nevitt also had the strong backing of “super lawyer” Steve Farber and his fellow attorneys at Brownstein Hyatt Farber Schreck, LLP.

O’Brien, in turn, raised approximately $40,000 and had to lend his campaign an additional $40,000 to get his message out in the waning days of the campaign. Notwithstanding the fact that Nevitt was considered the heir apparent to Hancock as mayor of Denver, O’Brien took almost 55 percent of the vote. O’Brien supporters indicated that they thought reasons for the upset included O’Brien’s professional background and demeanor compared with Nevitt’s lack of qualifications for the post. What may have also contributed to Nevitt’s defeat was the fact that he supported two 31 story apartment buildings which some residents believe will permanently scar the Denver skyline and a general dissatisfaction with City Hall being under the control of real estate developers.

Almost as surprising as the O’Brien upset was the victory of Rafael Espinoza. For the first time since 1987 an incumbent councilperson (Susan Shepherd) lost, and she lost badly. Rafael Espinoza garnered an amazing 69 percent of the vote. Shepherd set a potential record for lowest percentage of the vote ever by an incumbent councilperson getting only 31 percent from the voters. Shepherd, like Nevitt, had originally won in 2011 with overwhelming union support, but after the election, she became close to developers who got approval for projects in Sloans Lake and West Highlands. Members of neighborhood groups that opposed developments approved by Shepherd, like No High Rises in West Highlands and Sloan’s Lake Neighborhood Association were believed crucial in the electoral tsunami. Shepherd was also lavishly supported by Steve Farber and members of his firm Brownstein Hyatt Farber Schreck, LLP according to financial disclosure records.

Another upset was the victory of former Washington Park Profile publisher Paul Kashmann over another Hancock picked candidate Liz Adams. She was also endorsed by popular outgoing Councilman Charlie Brown and The Denver Post as well as the coterie of lobbyists and real estate developers and members of the ubiquitous Brownstein Hyatt Farber Schreck, LLP law firm. The race in District 6 mirrored that in District 1 and the auditor’s race where some residents believed excessively dense and under planned real estate developments were being rushed through the City Council.

Whether the citizen revolt will be complete will depend on the runoff races on June 2.

In particular the races in Districts 10 and 11 involve neighborhood candidates against candidates picked by Mayor Hancock and his supporters. In the first round former Cherry Creek North Neighborhood Association President Wayne New held a small lead (35% to 33%) against former Denver Planning Board member Anna Jones who is supported by the ever present Steve Farber and real estate developers. New surprisingly has the endorsement of The Denver Post.

In northeast Denver’s District 11, Mayor Hancock and Steve Farber’s candidate is Stacie Gilmore, wife of Scott Gilmore who is the appointee of the mayor as the Deputy Manager of Parks for Denver. Stacie Gilmore’s lack of independence and ethical challenges in voting on matters concerning the Parks and Recreation Department have become major issues in the race. Her opponent Sean Bradley is the president and CEO of the Denver Urban League. District 11 is one of the places in Denver where the mayor’s sub silencio support is believed to be of help. The ethically challenged Gilmore also has the endorsement of The Denver Post and money from members of the Brownstein Hyatt Farber Schreck, LLP law firm. In the first round Gilmore garnered 38 percent of the vote to 25 percent for Bradley.

While the May 2 results were generally a cause of celebration for neighborhood groups and grassroots activists there was one stain for them in the victory of Kendra Black in District 4 (Hampden area) over Halisi Vinson and Carolina Klein. Vinson had the strong endorsement of former mayor Wellington Webb and park advocates, but Black raised almost $200,000. One disappointed Vinson supporter who knows Black from the Thomas Jefferson High School Alumni Association noted that “at least the money boys got a win after so many other losses. She will do as instructed which will be sad for parks and neighborhoods in District 4, but her big money supporters will make a lot of money. Our neighborhood groups see her as the next Susan Shepherd. We have pledged to keep a close eye on what she is up to over the next four years. She is, according to people who know her, both amoral and dumb which is never a good combination.”

The runoff election is set for June 2 with ballots already being mailed by the Office of the Denver Clerk and Recorder.