Construction of new gas stations will be significantly limited in Denver after the City Council approved an ordinance enacting the restrictions in a meeting Tuesday.
Under the ordinance, new gas stations can’t be built within a quarter-mile of an existing gas station or a rail transit station or within 300 feet of certain “low-intensity residential zones.”
The rules apply to any new gas stations not submitted for review before May 14 of last year. Before it was approved, two law firms threatened to sue over the new rules, pointing specifically to that element.
The goal of the ordinance is for the space that would have been used for gas stations to instead prioritize affordable housing, neighborhood businesses, walkability and generally more “transit-compatible uses.”
“I’ve never once gotten a call saying, ‘I need to fill my tank and I just don’t know where to go,’” said Councilman Paul Kashmann, one of the bill’s sponsors.
Kashmann and the other sponsors — Councilmembers Diana Romero Campbell and Amanda Sawyer — brought the idea after hearing complaints from residents “about the proliferation and concentration of gas stations” in some areas of the city, according to a staff report.
The ordinance was approved 12-1 after an hour-and-a-half-long public hearing.
Foster, Graham, Milstein & Calisher and Brownstein Hyatt Farber Schreck submitted a joint letter to the City Council arguing that the ordinance violates the Colorado and United States constitutions because it would apply retroactively. The firms said if the council approves the ordinance, they “will not hesitate to pursue the legal remedies available to our clients.”
QuikTrip Corporation, one of those clients, has four applications pending in the city’s land use process. They have invested about $500,000 in nonrefundable design and engineering costs for their projects, according to a letter the company submitted to the City Council.
Without providing a specific defense to the claim, a representative for the City Attorney’s office said they disagree with the assertion that the ordinance could be challenged as unconstitutional.
The city also received several letters of support for the ordinance, including from the Denver Streets Partnership and Transportation Solutions. The Colorado Wyoming Petroleum Marketers Association wrote a letter thanking the city for its engagement with them over the ordinance, calling them “nothing short of stellar.”
“We are aware that the council and city government could pass this without our support and input but what is definitely true is that the hard work the sponsors have spent in engaging our group has led to a better outcome,” according to the letter.
According to a staff report, the city received comments and questions from nearly 200 people on the topic. About 36% of the comments showed support for the ordinance, 48% expressed opposition and another 16% asked questions or gave an unclear position.
Kathie Barstnar, executive director of NAIOP, a group representing commercial real estate owners and brokers, told The Denver Post the uncertainty created by the ordinance and the May 2024 impact date could stifle development in the city.
Barstnar called the added restrictions “another straw on the camels’ back for commercial real estate development and investment in the City and County of Denver.”
The ordinance exempts gas stations that accompany any large retail store that provides things like groceries or home goods. Low-intensity residential zones are defined as single-unit, two-unit and row houses.
Denver joins surrounding cities like Lakewood and Louisville in clamping down on new gas station construction.
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