On the November ballot a special interest group just got approval for an initiative that targets one particular business that has been operating legally in Denver for over 70 years and has an economic impact of 382 million a year and employees over 600 people. Furthermore this business supports thousands of other jobs throughout the state. What is the business and why is it targeted? Will the initiative pass? How will this impact real estate in Denver county?
Which business is being targeted in Denver?
Superior Farms is located north of the intersection of Colorado’s two major Interstate highways, among other industrial uses. It is one of the nation’s largest lamb processors, which has been doing business since the 1950s. It ships lamb not only to most Colorado restaurants and grocery stores but to many out-of-state customers as well. Under the new proposal the business would be forced to close its doors by 2026.
The irony is that Superior Farms is USDA inspected regularly and is in full compliance with all Denver ordinances and regulations along with federal regulations. This business is being targeted because of a special interest group that is against people eating meat.
What is in the initiative to ban only one business in Denver?
In 2024, Denver voters will be asked the following question:
“Shall the voters of the City and County of Denver adopt an ordinance prohibiting slaughterhouses, and, in connection, beginning January 1, 2026, prohibiting the construction, maintenance, or use of slaughterhouses within the City; and requiring the City to prioritize residents whose employment is affected by the ordinance in workforce training or employment assistance programs?”
Will the slaughterhouse initiative pass?
I would handicap the vote with a 90%+ probability of passing. Based on how this bill is being pitched, I don’t think the average Denverite is going to take the time to read/care about the long-term implications of the ban on one particular business.
Who is behind the proposed slaughterhouse ban?
Pro Animal future is the sponsor of the bill and wants to “end animal farming in Colorado”.
Pro-Animal Future defines slaughterhouses as, “a facility where animals are brought for the purpose of being killed to be processed into food and other products. These facilities are designed to expedite the slaughter of animals in mass.”
The proposed ordinance states, “Eliminating slaughterhouses in Denver will promote community awareness of animal welfare, bolster the City’s stance against animal cruelty, and, in turn, foster a more humane environment in Denver.”
What is the impact of shutting down one business in Denver?
In June, the Regional Economic Development Institute at Colorado State University released a report outlining the far-reaching economic implications of the ban should it pass in November.
It says the total annual output of the animal processing in Denver County currently exceeds $382 million, provides nearly 600 jobs and creates nearly $45 million in employee compensation.
But closing the Superior facility would likely “substantially impact the U.S.-based lamb supply chain and would severely strain existing facilities, thus reducing the volume of Colorado lamb available for purchase in Colorado and the rest of the U.S.,” says the report.
In the “most pessimistic” scenario, all economic activity related to Superior Farms leaves the state, for a loss of $861 million in economic activity and 2,787 jobs “after accounting for multiplier effects.”
On top of the immediate impact to Denver, the bigger impacts are to the owners of sheep that will have nowhere to process their meat leading to substantially higher food prices throughout the front range. Long and short The ban in Denver county will have far reaching consequences for the entire state and Mountain West region.
Is the initiative Government taking property & are taxpayers on the hook?
This initiative brings up an interesting question. By prohibiting a legal business that has operated for 70 years under current zoning is the government “taking” a right of the business and real estate owner? This brings us to the 5th amendment of the constitution. The 5th amendment is intended to uphold the principle that the government should not single out isolated individuals to bear excessive burdens, even in support of an important public good. When this happens, the payment of “just compensation” provides a means of removing any special burden.
As if Denver doesn’t have enough budget issues to deal with, if this initiative passes, there will no doubt be lawsuits filed by the owners for “government taking” and taxpayers will be on the hook for several hundred million dollars by some estimates.
Furthermore this brings up another important question, can voters essentially “condemn” a property and take it without going through a formal condemnation process? The answers to these questions will ultimately be decided by the courts but based on past precedents the case does not look good for Denver county taxpayers.
Banning a legal business is a Slippery slope in Denver county
Regardless of your particular views on meat vs. non-meat creating uncertainty for businesses through the ballot box is not good public policy. Let’s assume that Denver voters no longer think that dog food should be manufactured in the county due to the impact on the community. The Purina plant in Denver is one of the largest producers of dog food in the region and it could be forced to shut down driving up the cost of dog food for everyone in the state and burdening Denver taxpayers with huge legal bills and expenses. Who knows where the craziness will end with particular businesses and industries being targeted based on the political whims at the moment.
Summary
For real estate owners, bans on a slaughterhouse will have far reaching consequences as business will be reluctant to enter into long term leases and or build multi million dollar facilities due to the uncertainty of the political climate. Allowing voters to pick and choose what legal businesses can operate in an area that has been zoned for that purpose is setting dangerous precedent.
What if Denver voters approved a ban on transportation facilities due to their carbon footprint. Under the template used for the slaughterhouse ban this is very feasible. This would effectively ban an entire industry from Denver county and impact the entire state and mountain west region.
Political whims change frequently and businesses need certainty to make large investments. The uncertainty caused by the proposal to target and ban one particular business is terrible public policy that will ultimately lead to the demise of Denver County businesses and huge burdens for Denver taxpayers.
Additional Reading/Resources
- https://coloradosun.com/2024/07/10/slaughterhouse-ban-on-denver-ballot-targets-one-70-year-old-business/
- https://kdvr.com/news/local/measures-to-ban-slaughterhouses-fur-sales-in-denver-will-be-on-2024-ballot/
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