A Boulder County District Court judge has dismissed a lawsuit by city residents that sought to block the construction of a modular home factory at 6500 Arapahoe Road.
Residents sued the Boulder City Council, the City of Boulder and the Boulder Valley School District, alleging that underlying zoning rules prohibit the factory’s operation. But the judge ruled that local zoning rules do not apply to this project, in part because the city is partnering with the school district, which has a “sovereign status” overriding certain local zoning laws.
Modular homes, prefabricated buildings that can be assembled more efficiently, have the potential to drive down home construction costs as the city seeks to meet affordability goals. BVSD also plans to provide students with educational courses at the factory.
The lawsuit, filed on Jan. 11, 2023, argues the project would harm the nearby Sombrero Marsh and create noise, air pollution, traffic and environmental contamination. The underlying zoning for the project “specifically prohibits manufacturing uses” on this land, the lawsuit argued. The residents requested that the judge invalidate the city’s annexation agreement with the school district and declare that the factory is not allowed on the property.
In a Nov. 22 order, District Court Judge Dea M. Lindsey dismissed their claims, stating in part that a school district’s sovereignty allows it to pursue its “educational mission” despite conflicting zoning laws.
“In sum, nothing in the statute suggests school districts, where acting pursuant to their statutory authority, can be stopped by local zoning law,” the order states. “As such, BVSD has the power to pursue the factory project, zoning notwithstanding.”
The city has already broken ground on the project and plans to complete construction in early 2024, according to city officials.
A lawyer for the plaintiffs told Boulder Reporting Lab they are considering appealing the decision.
“We’re disappointed in the Court’s ruling and believe the ruling is in error,” Jordan Porter, a lawyer based in Denver, wrote in an email. “In finding the Boulder Valley School District’s sovereign immunity bars the relief sought here, the Court conflated the City’s actions with Boulder Valley School District’s tangential involvement in the project.”