New Denver ordinance limiting new gas station construction passes

The city of Denver has passed an ordinance limiting new gas station construction with the intention that it will lower housing costs and optimize land use.

 The Denver City Council approved Tuesday's zoning code amendment, retroactively applying it to proposals submitted after May 13, 2024.

The ordinance prohibits gas stations from being built within a quarter mile of an existing station. It also blocks projects submitted after the deadline, impacting at least a half-dozen land deals.

One affected project is a proposed QuikTrip station on East 39th Avenue, which was approved before the ordinance but is now blocked due to its submission date.

QuikTrip representatives expressed uncertainty about the project's future. A spokesperson for QuikTrip gave CBS Colorado the following statement.

"As a proud and active member of the Denver business community, QuikTrip is deeply disappointed in the City Council's unconstitutional decision to retroactively change the city's zoning laws and discourage responsible economic development. The Colorado Supreme Court has previously made clear rulings on these issues, and we intend to continue creating quality jobs, providing excellent customer service, and supporting local nonprofits."

"What does that mean for the future? I really don't know," said Denver Councilwoman Flor Alvidrez who was the only member to vote against the ordinance.

Alvidrez, who represents District 7 in Denver, stands by her vote against an ordinance, and emphasizes her goal to streamline zoning codes for predictable business practices. She highlighted concerns about the ordinance's impact on gas stations, particularly on highways like Federal Boulevard and Alameda Avenue. She noted the community benefits from what gas stations provide, such as jobs, resources for the unhoused and public restrooms. Additionally, she expressed concerns about the ordinance's environmental impact and its future-proofing, noting potential technological advancements could necessitate changes.

"If I have this piece of land, I want to be able to do something," she said.

Commercial real estate groups argue the Colorado Supreme Court has ruled retroactive zoning changes to pending applications are unconstitutional. Critics claim the backdated restriction could invalidate multiple projects.

However, supporters say the law will encourage affordable housing and better land use in Denver.

"The majority of operators in the association support the ordinance," said Grier Bailey, executive director of Colorado Wyoming Petroleum.

Bailey added that gas demand in Denver has remained flat, and the move could help people like their employees secure housing near their workplaces.

The ordinance allows new gas stations within restricted areas if they include a 20,000-square-foot structure dedicated to food sales or community services.

Alvidrez remains skeptical of the law's effectiveness.

"The idea that blocking gas stations will lead to housing development isn't valid -- that's not how business works," said Alvidrez, "I hope we don't have to draft a new ordinance in 5 to 10 years because of shifting transportation needs," she said.

Denver's new restrictions add to a growing national trend of cities prioritizing mixed-use development over traditional gas station expansion.