Denver City Council Eyes Changes to Slow Gas Station Development

Brownstein Hyatt Farber Schreck
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Last week, Denver City Councilmembers Amanda Sawyer, Diana Romero Campbell and Paul Kashmann announced a proposed amendment to the Denver Zoning Code to prohibit new gas stations within a quarter mile from light rail stations and other existing gas stations (Bill 24-0645). The proposal is being promoted as both a housing and climate measure aimed at making more room for housing, increasing walkability and moving away from car-dependent infrastructure.

The city’s recently adopted Near Southeast Area Plan recommends the prohibition of “auto-oriented” development, specifically identifying gas stations. As Community Planning and Development (CPD) deliberated on the plan’s recommendations last year, City Coun3cil offices saw a need and support for citywide legislation limiting the “proliferation of gas stations” throughout the city. Proponents of this proposal believe it has the potential to positively impact neighborhood walkability and bolster local businesses instead of gas stations built to accommodate cars and more road travel.

This announcement comes on the heels of a May 2024 staff presentation to the council’s Budget and Policy Committee focused on gas stations in the city, arising out of Kashmann’s (District 4), Sawyer’s (District 5) and Romero-Campbell’s (District 6) offices. In the presentation, city council staff proposed seven possibilities to address this issue:

1. Total Cap: Limit the number of service station permits in Denver to 215, modeled after legislation passed in Louisville, Colorado. Denver currently has 180 operating stations.

2. Buffer from Residential Properties: Implement a 300-foot buffer zone from residential properties, although no precedent was found in other cities.

3. Buffer from Transit Stations: Establish a buffer zone from bus or light rail stops. This proposal had significant precedent and support from Denver’s planning documents as well as state bill HB 24-1313, which encourages density around transit stops. (Read our prior analyses on the bill here and here.)

4. Buffer from Other Service Stations: Introduce a buffer zone similar to those in municipalities like Broomfield and Louisville, Colorado. The suggested buffer in the proposal was 1,000 feet.

5. Stricter Use Limitations: Amend the Denver Zoning Code to restrict where gas stations can be built. This proposal would also likely be the mechanism for the future legislation regardless of which proposals were chosen as a text amendment to the Zoning Code is how this would be enforceable.

6. Conditional Use Permitting Process: Implement additional criteria for permit approval or denial through the zoning administrator’s authority. This particular proposal may not require specific legislation as it could be done with CPD’s cooperation under existing department rules and regulations.

7. Stricter Permitting: Change the permitting process from a standard zoning permit to a Zoning Permit with Special Exceptions (ZPSE), which carries significantly more onerous steps and allows CPD staff to consider things like environmental and quality-of-life concerns when reviewing permits.

It remains to be seen which combination of proposed components in the presentation will be incorporated into the final filed amendment. Councilmembers Sawyer, Romero-Campbell and Kashmann are actively working on the proposed legislation, seeking feedback and engagement from the public. Information published on the city website indicates a draft bill will be available in September.

Following the presentation to the Budget and Policy Committee in May, Councilmember Kevin Flynn (District 2) raised concerns about how this legislation would impact gas stations associated with larger stores like King Soopers or Costco. He also highlighted that gas stations occupy valuable real estate that could be used for housing. Councilmember Darrell Watson (District 9) inquired about the status of currently nonoperational gas stations and Councilmember Jamie Torres (District 3) asked technical questions regarding the legislative mechanisms.

Once a bill is drafted and filed, it will be scheduled for a committee review—likely by the Land Use, Transportation and Infrastructure Committee—and then proceed to the full council for a vote.

With this proposed legislation, this council's commitment to addressing climate change and environmental concerns remains evident. While the final form of the bill is still to be determined, enacting even one of these proposals could significantly impact entitlements and perhaps operations for fuel stations and related businesses across the city. Our team will continue to monitor and report on the progress of this legislation.

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations. Attorney Advertising.

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