Count the negatives: “noncompliance with nonclaim statutes deprives a court of subject matter jurisdiction” (Opinion), and CRS 38-26-106 is not a nonclaim statute. That statute requires public-works-project contractors to post a bond. Here, Tarco did not post a bond when constructing an overpass and infrastructure around a shopping center for the Conifer Metro District (CMD). It did not get paid by CMD and sued. The District, after a two-year delay, claimed that Tarco couldn’t sue because of its noncompliance with the statute. The trial court dismissed Tarco’s claims. The court of appeals reversed in part, holding: 1) CMD’s pleadings didn’t prejudice Tarco, 2) the contracts were for “public works” under the statute, 3) the statute is not a nonclaim statute, 4) the CMD lacked the power to waive the bond requirement, and 5) fact issues saved Tarco’s equitable estoppel argument.
Tag Archives: Special Districts
Real estate development companies, through the individuals that control them, can run the special tax districts they create. Colorado’s Special District Act, meant to encourage development of open land, permits developers to control such districts and to pledge taxes and fees collected by the district to themselves. But, no government can delegate legislative functions to a private party such as a developer. Here, a special district attempted to assign the fees it collected to a developer. The developer then charged landowners interest on the fees. The court of appeals held that: 1) the district did not have the statutory authority to “assign” development fees, 2) developer could not charge interest on development fees, and 3) the assignment did not give developer a lien. Rather, districts can only “pledge” payments to developers, which must be set and collected by the district.