Aurora’s countersuit against Denver hotels thrown out

AURORA | The city won’t be able to recoup damages for lawsuits holding up the controversial Gaylord hotel project already estimated to cost up to $850 million, according to a ruling on a lawsuit.

An Arapahoe County District Court judge Friday dismissed  a counter lawsuit the City of Aurora filed against a group of mostly downtown Denver hoteliers seeking to scuttle the project. City officials alleged the hotels were abusing the legal system trying to stop Aurora from building the massive Gaylord Hotel and Conference Center. The 1,500-room hotel and conference center will be located near Denver International Airport and will be the biggest hotel in Colorado.

In a Nov. 7 ruling , Arapahoe County District Court Judge Charles M. Pratt, disagreed. He said the hotels’ litigation “had an objectively reasonable basis” and dismissed the case.

Wendy Mitchell, president of the Aurora Economic Development Council said the project is still set to break ground next fall.

“We’re confident in our legal position,” she added, pointing out that the hotels’ lawsuit against the Aurora project was thrown out already.

Last April, Denver Judge Norman Haglund dismissed all of the claims filed by the hotels against the project that included a request to the Regional Tourism Authority to revoke an $81.4 million tax incentive award to Gaylord after the project changed owners in 2012.

A lawsuit filed by two Aurora residents in Adams County who claim the Gaylord project violates Colorado’s tax restriction laws is still pending. Tom Snyder, one of the lawyers hired by the city, said the Gaylord project will continue to be negatively impacted by that lawsuit until a decision is made.

“Under the current financing mechanisms in pace, (that) lawsuit does have material impact. It creates a cloud on the bonds that would be issued,” he said.