Magni Keystone, LLC of Stillwater, Minnesota owns the Brown’s Cabin Property, undeveloped 4.348 acres of land adjacent to East Keystone Road and State Highway 6 at the entrance to the River Run Neighborhood with dramatic views of the Keystone Ski Area in Summit County in a prime residential location adjacent to retail shopping and services.
Magni’s land is subject to the 1995 Keystone Resort Planned Unit Development (PUD), which is governed and enforced by Summit County as a recorded land use designation that encumbers the land, binding Magni and its successors or assigns. The PUD as to Magni’s land limits use to “multi-family employee restricted units. Not to exceed 100 actual employee restricted units.” The PUD allows for density transfers within its boundaries but the transfers are so costly as to render them uneconomical. The PUD also limits the pricing for employee restricted units; that is, the units may not be priced higher than 125% of a federally determined affordable rate.
Magni’s land is subject to Summit County’s Land Use and Development Code, which is legally binding and sets county-wide rules on development, modification of zoning designations, and the density credit transfer program.
On February 25, 2014, Magni sued Summit County and its officials for violating its rights—under the U.S. Constitution’s Fifth and Fourteenth Amendments and provisions of the Colorado Constitution—to use its property. Magni alleged in its complaint filed in Colorado State District Court for Summit County that, although its property is in a prime residential location and is adjacent to retail shopping and services, Magni has been barred from developing the property. Magni seeks declaratory and injunction relief from Summit County’s actions or in the alternative an award of just compensation for the unconstitutional taking of its property.
On March 20, 2014, Summit County filed a motion to dismiss Magni’s federal claims. On April 10, 2014, Magni filed its response and on April 24, 2014, Summit County filed its reply. On July 21, 2014, Magni filed its opening brief challenging Summit County’s decision as arbitrary and capricious. On September 22, 2014, Summit County filed its answer and on October 14, 2014, Magni filed its reply.