A legal dispute regarding the proposed establishment of a homeless shelter at the First Christian Church location in Loveland has been resolved. The lawsuit, which involved an adverse possession claim from Allnutt Funeral Service Inc., has been dismissed, allowing the relationship between the parties to return to its previous state. The proposal for a homeless services center at the church, located at 2000 N. Lincoln Ave., has been abandoned following the settlement.
The case, titled Allnutt Funeral Service Inc. v. First Christian Church, sought to challenge zoning decisions related to the homeless shelter. The church intended to sell its campus to Homeward Alliance Inc., which planned to create a 24/7 homeless shelter and resource center. However, this initiative encountered significant opposition from community members, leading Homeward Alliance to withdraw its proposal. Subsequently, the Loveland City Council did not act on the necessary zoning request, prompting First Christian Church to abandon its plans.
Allnutt Funeral Service’s lawsuit claimed ownership rights over a parking lot and access roads within the church property, citing regular use for funerals at the adjacent funeral home. The funeral service argued that this usage constituted a basis for an adverse possession claim. In response, First Christian Church maintained that any access granted to Allnutt was done with permission, referencing a May 2, 1984, agreement that allowed mutual use of the properties on an occasional basis rather than conferring ownership rights. The church’s legal representatives emphasized that the access was always permissive and could be revoked at any time.
Once it became clear that the homeless shelter would not materialize, the involved parties began discussions to settle the dispute. On January 15, 2025, they informed the court of their agreement to dismiss the case voluntarily, with the designation of “without prejudice” allowing for the possibility of refiling in the future.
Lee Sparks, a member of First Christian Church who participated in the proposal discussions, noted, “The settlement returns us to a place before the lawsuit was filed.” The original agreement permitting the mutual use of the properties remains valid.
Attorneys representing Allnutt Funeral Service, Beau Bump and Russell Sprague from the Cline Williams Wright Johnson & Oldfather law firm, did not provide comment regarding the settlement. The case was filed in the Larimer County District Court under case number 2024cv30802 on January 31, 2025.
This resolution marks a significant point in the ongoing discussion about the provision of homeless services in Loveland, illustrating the complexities involved when community needs intersect with local property rights and zoning regulations.
