Broomfield Town Square Developers Sue City Over Denied Deadline Extension

The developer team hoping to build the closely watched Broomfield Town Square project has filed a lawsuit against the city, arguing that officials acted "unreasonably" when they declined to extend a key deadline.

Broomfield Town Square Alliance LLC submitted its complaint Friday in Broomfield's district court. The filing contends that the refusal to extend the deadline puts the city in breach of the redevelopment and reimbursement agreement between the two sides.

At issue is a provision in Broomfield's municipal code. It requires an owner to apply for and receive building permits within three years of a project's site development plan being approved. If that window is missed, the Broomfield City Council can revoke the plan. City staff say time has run out, since the Town Square plan was approved in mid-September 2023. The city started the process that could lead to revocation in September.

According to the complaint, the developers have already submitted permits. The city, however, has objected that no building permits have been filed for what it calls "the major structures," including the Safeway redevelopment and the mixed-use buildings. The complaint says the alliance asked for an extension so it could meet the city's reading of the code, and the city said no.

"It is unclear why the City has turned code compliance into a moving target, but its decision to do so has jeopardized continuance of the Project," the complaint says. It adds that the conduct violates the city's obligation under the agreement to act in good faith with the developers to complete the project.

City staff say Town Square has been in the works for more than a decade and was imagined as a walkable community gathering place that could serve as Broomfield's downtown. Delays have been significant. Projections in 2021 estimated that construction would begin by early 2023, while this year the developers estimated groundbreaking in 2027, according to a July 16 council presentation by City Attorney Nancy Rodgers.

Money has also been part of the dispute. A September letter from the alliance's attorney to the city says the developers offered to accept $6 million to end the redevelopment agreement, while the city countered with $2 million.

The stakes extend to the land itself, which sits north of 120th Avenue and east of Main Street. Under the agreement, the developer team holds exclusive development rights there until 2044. If the agreement remains in force and the developers choose not to proceed, the property could stay vacant for roughly two decades or longer.

The city's Town Square webpage, which mentions the lawsuit, states that Broomfield "remains fully compliant with the development agreement and continues to operate strictly in accordance with the Broomfield Municipal Code." The page says the City Council is scheduled to hold a hearing on formally revoking the site development plan Dec. 8. If the plan is revoked, the developers would have to decide on next steps, which could include resubmitting the plan or filing a new one, Rodgers said at a September meeting.