627 S Lipan

Shortly after we broke this story last week, the developer moved forward with a lawsuit against the city.

redT Homes and longtime landowners Joe and Jane Madrid have filed suit in Denver District Court after City Council voted 10-1 to deny their request to rezone 627 S. Lipan Street, blocking a proposed 24-unit townhome project in Athmar Park that had city staff and Planning Board support.

“It’s total garbage,” said redT CEO Nathan Adams. “We met with every council member, spent 20 months on this, and then only got three minutes to present.”

The 28,125-square-foot lot is largely vacant and owned by a trust for the Madrids, who’ve lived in the area for over 30 years. Without residents, the site has become a magnet for illegal dumping, standing water, and general neglect.

Photos submitted by the project team show a muddy, blighted alley behind the property—one RedT says they planned to invest six figures into improving.

“This was the alley we were going to fix—addressing drainage issues that cause flooding and making it safer and cleaner for the neighborhood,” said Adams. “Instead, it continues to serve as a dumping ground.”

Supporters of the rezone viewed the project as an opportunity to clean up the site, upgrade infrastructure, and bring much-needed attainable housing, with zero displacement.

Instead, Councilwoman Flor Alvidrez led the charge against it, citing concerns about mixed-use zoning and community letters that, in her view, hinted at gentrification.

Only Councilwoman Sarah Parady voted in favor, calling the site “a large lot that I would prefer not to be single-unit housing.”

In the lawsuit filed May 5, redT and the Madrids argue the vote was based on speculation and pre-written remarks, pointing to what they say was a predetermined outcome.

They’re asking a judge to overturn the decision and allow the project to move forward.

“It’s OK in life to admit you made a mistake and then make it right,” Adams said. “That’s all we’re asking. Let us finish what we started—bringing cleaner streets, improved infrastructure, and new attainable housing to Athmar Park.”