The civil case over a proposal to build a Dollar General on Road N between Cortez and Dolores is moving into the next phase of litigation.
District Court Judge Todd Plewe has scheduled an hourlong hearing next month, allowing 10-minute arguments from attorneys representing both sides.
The case involves a challenge to the Montezuma County Board of County Commissioners’ continued denial of a high-impact permit required to build and operate the store.
The case dates to 2024, when the county board denied two applications amid extensive public input. More recently, attorneys for the developer and the county commissioners have exchanged legal briefs.
Leaf Properties, a developer with ties to Dollar General, proposes building a store on a 3.78-acre parcel at 27078 County Road N. The land is owned by Leaf Properties CEO Doug Kinsey.
Throughout the lawsuit, Leaf Properties has asked the judge to issue a ruling allowing the project to proceed.
The legal dispute centers on how the county’s land use code is interpreted and applied. Earlier legal arguments from Leaf Properties asserted the denial was based on speculation from public commenters who opposed the project. Attorneys for the developer argued the denial lacked “competent evidence,” citing an approved Colorado Department of Transportation traffic study.
“Many members of the public took issue with the project’s intended use, a dollar store, among other concerns,” Leaf Properties attorney Andrew Peters wrote in a Dec. 5 brief.
In the latest filing, Peters wrote that Leaf Properties is now “seeking something different and broader.” The brief requests a finding that the county’s high-impact permit process does not apply to the proposed store and seeks a declaration that the review process does not comply with the law and is unenforceable.
County attorney Stephen Tarnowski argued in a brief that there is significant support for the board’s denial. He wrote that the applicant dismissed public concerns related to code and zoning compliance, as well as questions about whether the store would negatively affect the rural landscape.
Representatives of the local fire district also raised concerns during a hearing about available water supply and emergency response distances, given the district’s limited resources.
Public testimony also highlighted fears of increased traffic accidents, crime and light pollution, as well as negative effects on property values, overall aesthetics and the rural character of the area.
“Applicant similarly continues to dismiss voluminous public testimony as ‘zero competent evidence,’” Tarnowski wrote in a Jan. 9 brief.
The property is zoned for commercial use, but the project requires a high-impact permit because it would generate traffic exceeding the county’s threshold, according to the land use code and the county attorney.
Plewe set the hearing for May 21 at 2 p.m. Both sides will present brief arguments and respond to questions from the court. No testimony or new evidence will be introduced.
Plewe said during a Thursday hearing that the arguments are intended to clarify the legal issues to help the court reach a decision.
The Montezuma County Board of County Commissioners denied the permit twice, first on April 30, 2024, and again on July 8, 2025, both times on 2-1 votes. Commissioner Jim Candelaria voted in favor of the proposal on both occasions.
After the first denial, Leaf Properties filed a lawsuit in May 2024. Plewe later ordered the county to issue a written statement explaining its decision, finding the board had failed at that time to follow its own procedures.
The board subsequently reissued the denial in writing after holding additional hearings last June. Leaf Properties shortly thereafter filed an amended complaint, and the litigation has continued since then.
awatson@the-journal.com
