Located immediately off Interstate 25, along the main road of an affluent town 25 miles south of Denver, sits a Wendy’s, a Starbucks, a 7-Eleven and a Subway restaurant — but no golden arches.
The most recent beef in the City of Castle Pines is over a proposal to greenlight the town’s first-ever McDonald’s restaurant. The City Council ultimately rejected the developer's bid to erect one, citing traffic and worries about crime near its busiest road.
The city now faces a lawsuit from the developer.
The proposed McDonald’s location intended to anchor a 1.3-acre commercial development on the southwest corner of Lagae Road along Castle Pines Parkway — an empty plot of land a half mile west of I-25.
Late into a nearly six-hour City Council meeting on May 28, councilmembers voted down the proposal, 5-2, to build a 24-hour operated, multi-lane drive thru McDonald’s location.
Upon hearing the decision, many residents in the crowd applauded.
In the weeks following the town's McDonald's rejection, the property’s land owner filed a complaint in district court, claiming the city wrongfully rejected the fast food's application.
'No clown in our town'
In opposing the proposed McDonald's location, critics said they fear the new commercial space would increase traffic and crime in the area. Other complaints ranged from people saying it would be an eyesore, promote "unhealthy" food, increase loitering and vehicle emissions. Others raised concerns about what it would mean for nearby property values.
Critics held signs that said: “No McDonald’s double drive-thru fast food dispensary on Castle Pines Parkway.”
“No clown in our town!” another placard said.
Castle Pines has a population of nearly 11,000 residents, with an average median income of $66,000, according to U.S. Census data.
In voting down the proposed McDonald’s, the council pointed to concerns over traffic, public health, safety, and community welfare.
Councilmember Deborah Mulvey, who voted against the proposal, said there must be “a balance.”
“On balance, it may seem to indicate this could not further help public welfare and safety. And that might be a detriment to the community we are trying to make,” Mulvey said.
“The crime — I'm not convinced would not go up,” Councilmember Chris Eubanks said, comparing it to the 7-Eleven on the east side of Castle Pines Parkway, which he said is “probably one of the busiest places for the Douglas County Sheriff.”
“I submit we see something similar with a 24/7 McDonald’s opened," Eubanks said.
Mulvey, echoing some public speakers and fellow councilmembers, also argued it would attract lot of traffic from I-25.
“It enhances the ability for people to commit crimes,” Mulvey said. “Statistically, crime comes into the city from other locations.”
A ‘erroneous decision’
In response, Ventana Capital, the property’s landowner, is suing the city, arguing the decision was arbitrary and capricious.
The lawsuit argued that the site, in fact, falls within the city's planned development that allows for fast-food use.
To say that the proposal does not support the applicable goals and objectives of the city because of the nature of drive-through use and the lack of outdoor eating spaces is "nebulous," the lawsuit said.
Ditto for the argument that it does not further public health, safety, and community welfare because it could add traffic to an already existing traffic problem.
"These bases were pretextual: the City Council denied the site improvement plan because a majority of its members and/or vocal town residents did not want a fast-food restaurant, specifically a McDonald’s, at that location," the lawsuit said.
In the complaint, Ventana attorneys insisted that zoning at the site, in fact, "permits various principal uses, including a 'fast-food establishment.' The proposed McDonalds drive-through restaurant is a fast-food establishment and therefore a permitted principal use in conformance with the zoning."
“Indeed, the City Council’s decision may render the property unusable for any purpose if an increase in traffic is sufficient reasons to deny a site improvement plan,” the complaint said.
The Denver Gazette had reached out to the plaintiff's attorneys from Brownstein Hyatt Farber Schreck, LLP for comment, as well as to Castle Pines. The city wouldn't comment, citing the pending litigation.
'Not a Chick-fil-A'
Councilmember Geoff Blue agreed that the outcome of the council's vote would have been different if it weren't over a McDonald's.
“We may not be denying this here if this was a Chick-fil-A," he said. "I think a lot of this has to do with this being a McDonald’s and not a Chick-fil-A.”
Mayor Tracy Engerman, who also supports the proposal, said the land has been sitting vacant for a "very long time.”
“We’ve had limited interest in this land,” Engerman said. “And for McDonald’s to come as an applicant, and want to come to this space, we don’t get to decide where McDonald’s goes. There probably is a better location within this community, but right now, this is the location that’s available and they want to come here.”
The mayor said the application had met all the criteria in its comprehensive plan. She said she worries about setting a precedent and sending a message to businesses that seek to invest in the city and have already taken the risks to do so.
Business Model Analyst estimates an average McDonald’s location generates $2.7 million annually in sales. With its city-only 3.75% sales tax rate, the restaurant potentially could yield more than $100,000 in annual sales tax revenue based on that average sales estimate — and roughly $209,000 in annual tax revenue, given its combined sales tax rate of 7.75%.
“For us to deny this application also speaks to the community's lack of being good fosters of good business for this community,” Engerman said.
In response to the mayor's comment, one resident yelled, “False!”
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