Oklahoma-based convenience store giant QuikTrip filed a lawsuit this week against the city of Denver over its retroactive restrictions on gas stations.

The suit says the city's rules, approved in a 12-1 city council vote on Feb. 18, violate state law by retroactively banning some gas stations that were already in the pipeline.

The lawsuit, filed Monday in Denver District Court, seeks an injunction to block enforcement of the ordinance on projects submitted before Feb. 18.

If granted, the injunction would allow QuikTrip to move forward with plans to develop four new gas stations in Denver, at 1595 W. 48th Ave., 2100 S. Colorado Blvd., 5500 E. Yale Ave. and 12225 E. 39th Ave.

The company said it is under contract to buy three of the sites and to lease the fourth.

Bisnow first reported the potential for legal action, with sources saying litigation was “imminent” the day after the vote.

The ordinance prohibits new retail gas stations within a quarter-mile of existing fuel stations and rail transit stops or within 300 feet of protected residential areas. It also includes a retroactive enforcement date of May 13, 2024, meaning any project submitted after that date is automatically rejected.

That could leave developers and landowners with millions in sunk costs. Industry estimates suggest that building a gas station in Denver costs between $8M and $12M, with planning and permitting often taking more than a year.

QuikTrip and other developers raised alarms before the vote, warning city officials that the retroactive clause could spark legal challenges.

Law firms Brownstein Hyatt Farber Schreck and Foster Graham Milstein & Calisher wrote a joint letter to the city in December, arguing that applying the new rules to existing projects would be unconstitutional under Colorado Supreme Court precedent.

Both firms represent “multiple clients who develop and operate gas stations in the City and County of Denver,” they said in an earlier letter.

Council Member Paul Kashmann co-sponsored the ordinance with Diana Romero Campbell and Amanda Sawyer, framing it as a land use priority to encourage mixed-use and affordable housing development.

“Building new gas stations now is like building more Blockbusters in the age of Netflix,” Council Member Chris Hinds said before voting to approve the bill.

QuikTrip’s lawsuit says it has already spent more than $750K on planning, legal fees, environmental assessments and other costs related to its Denver expansion.

Legal challenges to similar bans in other cities have had mixed results. While some restrictions have been overturned in Eugene, Oregon, and Berkeley, California, others have survived in places like Providence, Rhode Island.

The Denver City Attorney’s Office has yet to publicly respond to QuikTrip’s lawsuit but previously defended the ordinance as legally sound. A status hearing is scheduled for May 21.

QuikTrip declined to comment on the lawsuit but pointed to its February statement to Bisnow, in which it criticized the ordinance as “an unconstitutional decision” that could “discourage responsible economic development.”