Questions on the meaning of rural character and statutory power were emphasized in 22nd Judicial District court Thursday as attorneys debated whether county officials lawfully denied a proposal to build a Dollar General on Road N between Cortez and Dolores.
A developer tied to Dollar General intends to build a dollar store on over 3 acres of undeveloped land located on Highway 145’s southeast corner. It is an application Montezuma County Commissioners repeatedly denied.
Leaf Properties’ lawsuit against the board is proceeding after two years, one earlier court ruling and a second denial from the board in July 2025.
Roughly 10 minutes of oral arguments were presented Thursday before District Court Chief Judge Todd Plewe, who questioned both sides extensively before saying he would issue a written ruling at a later date.
The judge previously stated he called the hearing to clarify legal issues to reach a judgment.
Andrew Peters, attorney for Leaf Properties, argued the proposal should move forward under the “use-by-right” process within the county’s Land-Use Code and by creating a plan to show how the development could mitigate adverse impacts.
“That property is zoned for commercial use, which means it has the ability to mitigate impact,” he said.
Peters said the denial was not supported by “competent evidence” but reflected negative community sentiment around parking, traffic, aesthetics and fire danger. Many members of the public spoke against the proposal during at least three public hearings in 2024 and 2025 as the application went before the board.
“There are facial challenges the county mixes and matches, and the question I want to put in front of the court is the question of competence,” Peters said.
Plewe said to his knowledge “competent evidence” in legal terminology lacks clear definition, and Peters said he agreed.
Stephen Tarnowski, county attorney, told the court the land-use code was applied properly and the board made a decision that was by code.
He said the proposal doesn’t merit “use by right” because it exceeded threshold standards, triggering the high-impact permit process where approval is conditional.
“The threshold standards outlined in the code are for protection of the county’s rural character. Leaf Properties seeks to build a dollar store and produce 22 times greater traffic,” Tarnowski said Thursday.
Plewe posed several questions, including to Tarnowski.
“The land use code reads full of contradictions – meaning if someone were reading it, it may lead them to believe ‘use by rights’ is allowable – does it really mean ‘use by right’ unless there are more than 15 cars a day?” he said.
Tarno said Tamowski was only posing the his question in regard to traffic. But he argued threshold standards apply to more than just traffic, including sound and lighting.
Plewe’s ruling is expected to address whether the county interpreted its land-use code properly and whether commissioners can deny commercially zoned projects based on threshold standards and rural character concerns.
awatson@the-journal.com
