Coralville Hotel Associates, L.C. v. City of Coralville

STREIT, Justice.

Hotel owners object to a city going into the hotel business in competition with private businesses. In Fults v. City of Coralville, 666 N.W.2d 548 (Iowa 2003), we ruled against two property owners who had challenged Coralville’s plan to build a hotel and conference center near Interstate 80. Not long after our decision, a group of hoteliers mounted a second challenge to the project, which they contend will illegally compete with their hotels. Because the plain language of Iowa’s noncom-petition-by-government statute permits a city to enact an ordinance specifically authorizing…