The IEC Attacks Colorado Home Rule Cities And Counties

by Charles Bonniwell | May 22, 2023 | Main Articles

by Charles C. Bonniwell

Bureaucratic Power Duo: Observers of the IEC have indicated the Executive Director Dino Ioannides, above, and legal counsel Senior Assistant Attorney General Gina Cannan, right, have filled the power vacuum left when Commissioner Bill Leone was not re­appointed to the IEC. They in turn have carried on Leone’s vision of the IEC as an all-powerful entity to be used by insiders to crush political opponents.

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

Jam-Packed: The Glendale City Council meeting of May 12, 2015, to reauthorize its urban renewal authority’s eminent domain powers was jam-packed by people brought to the meeting by Ali, Saeed and Nasirin Kholghy owners of Authentic Persian & Oriental Rugs. Residents of Glendale have accused the Kholghy family of attempting to bully and intimidate them by bringing in the paramilitary militia group the Oath Keepers whose banner is shown on the right.

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

Secret Meeting: It has long been believed that Glendale rug merchants were in ­cahoots with the local FBI to force the City of Glendale to allow the building of a ­massive condominium complex on ­Colorado Boulevard and East ­Virginia. Such ­suspicions were ­supported by the above picture taken on October 6, 2015, at Panera Bread on Colorado Boulevard north of Yale. At the back of the booth, left to right, are FBI Special Agent ­Kimberly Milka, and FBI Special Agent Jonathan ­Grusing; at the front of the booth, left to right, are the ­owners of ­Authentic ­Persian & Oriental Rugs, ­Nasrin ­Kholghy, Mohammad Ali Kheirkhahi, and Saeed Kholghy.

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.

FBI Agent Arrested: Charles Johnson (left) allegedly harassed, stalked, and intimidated former Glendale City Clerk Sherry Frame, right, and individuals who wrote letters or were quoted in the Chronicle as being critical of Mohammad Ali Kheirkhahi or M.A.K’s proposed massive condo project on Colorado Boulevard. All charges were dropped and all warrants quashed in Arapahoe County Court per the request of the FBI “for reasons that cannot be disclosed.”

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.

High-Rise Apartments Going Up At Cherry Creek’s Sears Store Site

by Valley Gadfly | May 22, 2023 | Main Articles

The Eight Story $400 To $500 Million ­Project To Build 430 Apartments, ­Restaurants And Retail

by Glen Richardson

Curtain Call: The empty Sears building along 1st Ave. in Cherry Creek North is set for demolition. Construction is expected to begin in mid-2024, with completion in two years.

The unoccupied Cherry Creek North Sears building that has eluded devel­opment and sat empty since 2015, is finally going to hear the sound of trucks and construction equipment at work. ­After years of false starts, announcement that BMC Investments will improve and enhance the abandoned store site is electrifying news in the booming district.

Plans proposed by BMC’s Matt Joblon, found­ing partner & CEO, to create a “flagship centerpiece” on the 4.28-acre site intrigues and fascinates virtually everyone. Job­lon — his firm has completed ­multiple apart­ment, hotel, and office projects in Cher­ry Creek North since 2013 — plans an eight-story multifamily complex. The site will also include 100,000-sq.-ft. of retail and restaurant space plus an “outdoor paseo” for entertainment. Initial site development plans have been submitted to the City & County of Denver by BMC.

Located along East 1st and 2nd Ave. between Clayton Lane and Josephine St. — one of the last developable sites in the district — demoli­tion and new construction work at the site is ex­pected to begin by mid-2024, with completion in two years. The Cherry Creek West project planned directly across First Ave. at the Cherry Creek Shopping Center, also expects to begin construction in mid-2024.

Development Firms

At the end of last year Atlanta-based Invesco Ltd. — now the sole owner of Cherry Creek’s Clayton Lane — selected BMC In­vest­ments and Los Angeles-based Prism Places to develop the property. Denver’s Tryba Architects — the same firm that designed the initial 9.5-acre Clayton Lane for Nichols Partnership 20-years ago — has been tabbed as the project’s architect. Employee-owned, Denver-based PCL Construction is the general contractor.

The development site includes the Crate & Barrel store on the corner of 1st Ave. and Clayton Ln. BMC and store officials are work­­ing through options for the site, in­clud­­ing leaving the building untouched. If the decision is to demolish the building, architectural plans call for it to be replaced by a five-story mixed-use residential building, but the below-grade parking garage would be preserved.

To keep businesses, residents, and shoppers cognizant of changes ahead, here’s the Chronicle’s community guide for what to anticipate:

What’s Changing

Betwixt & Between: Crate & Barrel at 1st and Clayton Ln. is a slice of the makeover site. BMC and store execs are reviewing op­tions. Architect’s draft shows a five-story res­idential building.

The old Sears store is being replaced by an eight-story apartment building with 430 studio, one-bedroom, and two-bedroom units.

In addition, 100,000-sq.-ft. of retail and res­taurant spaces will be added. The units will range from 1,200 to 2,000-sq.-ft. Two of the spaces will be reserved for minority-owned art-retail units at more affordable rental rates.

The site will also include an outdoor court­yard-paseo designed for ­entertainment. From 100 to 200 events are planned per year. Live band concerts are expected to be included in the site schedule.

What Won’t Change

The Whole Foods Market at E. 1st Ave. & University Blvd. has a long-term lease and won’t be relocated or demolished. The store will stay in its long-established spot.

In addition, the five-story Clayton Lane Parking Garage next to Whole Foods won’t be taken down. Independent of Whole Foods customers use, the Clayton Lane con­do owners will continue to have access. Furthermore, parking for nearby offices will endure.

Sears Saga: The Cherry Creek Sears store opened in 1954, part of what was once the largest U.S. retailer. Richard Sears and Alvah Roebuck issued their first catalog in 1891.

Development strategy is to follow current zoning, with no plans to request zoning variances. Moreover, structures east of Clayton Lane will not be changed or altered.

People safety remains the top priority for Clayton Lane and the Cherry Creek North community. People continue to feel safe in the district day or night — it’s a shopping sanctuary and safe neighborhood. Keeping it safeguarded is crucial, declares BMC’s Matt Joblon.

Street Enhancements

Clayton Lane Climax: BMC Investments to complete Cherry Creek’s Clayton Lane proj­ect launched 20 years ago. Swap of emp­ty Sears store for high-rise, retail is plan­ned on 4.28-acre site.

Restructuring of existing storefronts on Clay­ton Lane and 2nd Ave. are being de­sign­ed to engage customers and create a charm­ing, eye-catching street.

Store layouts will be updated into small- format floor plans preferred by boutique shops and restaurants. They are adjustments that impact performance and make spaces competitive. Interiors of ground floor retail spaces will be revamped and modernized; effective designs intended to dramatize the space and stimulate sales.

There is some unease that Cherry Creek North’s increasing density could create com­munity character concerns. District den­sity, however, will be somewhat offset by the planned outdoor courtyard. There’s also nervousness that building height limits — all buildings 8-12 stories in height — are causing the district to become monotonous.

Story Of Sears

The Sears store in Cherry Creek opened in 1954 after Sears closed its store in downtown Denver. The. Cherry Creek store on 1st Ave occupied 133,493-sq.-ft. and the ad­jacent Auto Center took up another 18,769-sq.-ft. The combined store and auto center at one time had 66 employees.

Sears declared bankruptcy in October 2018, resulting in the closing of Denver’s last two stores. They were located in the South­glenn Mall on S. University Ave. and in Lakewood’s Westland Center.

Richard Sears and Alvah Roebuck issued their first catalog containing 322 pages in 1891. The first Sears retail store opened in Chicago in 1925. At its peak, Sears was the largest U.S. retailer with 3,500 Sears and Kmart stores.