Loveland council ratifies Centerra South financial arrangement

LOVELAND — In what might be described as a confusing discussion and vote, the Loveland City Council Tuesday night re-approved, or ratified, the financial agreement that it had already approved in May to pay for infrastructure in the Centerra South Urban Renewal Area.

The reason: The city is anticipating that Larimer County, which previously declined to participate in the financial plan for the development of Centerra South, may now agree to participate.

But it hasn’t yet. The county is scheduled to vote on Oct. 10 on an undisclosed plan to add some county tax revenue to the plan. City and county staff members, who had been primarily involved in negotiations over county participation, have been close-mouthed.

Councilman Steve Olson, who also has been involved in the negotiations, would not reveal what the county is thinking but said, “There are indications that we can include the county in our revenue projections, and I can’t say more at this point.”

The city’s action Tuesday was necessary because if the county ultimately decides to participate it will represent a “substantial modification of the revenue sharing agreement,” said Dalton Kelley, an attorney with Butler Snow LLP who has been advising the city on the financial agreement.

The vote Tuesday, and previous votes by taxing authorities such as the Thompson School District, would give the Loveland Urban Renewal Authority the green light to move ahead with a substantial modification of the revenue agreement if the county joins in, Kelley said. 

LURA also is scheduled to meet on Oct. 10 and vote on modifications to the plan. The LURA board is composed of members of the City Council plus representatives from the school district, the county, from special districts and a member serving at large appointed by Mayor Jacki Marsh.

The council made no changes to the plan it approved in May. It commits 100% of the increases in property taxes on the Centerra South development to funding infrastructure. It also commits 1.75% of sales in the Centerra South area for infrastructure. The city would keep 1.25%; the total sales tax is 3% of sales.

It is estimated that public improvements in the $1.04 billion Centerra South development will total $147.5 million, which would be paid by the property tax increment, the sales tax committed to the project, and a 1.5% lodging tax added on top of the existing 3% lodging tax that will apply to an anticipated hotel in the development.

Council members raised questions about why it was voting now to ratify a plan it had already approved, given that the county proposal is still undisclosed.

Kelley said a vote is a showing of good faith and gives LURA an opening to approve the substantial modification when and if the county decides to join the project.

During public comment, Loveland resident Linda Rosa, who was a leader in the effort to place charter amendment 301 on the ballot for November — an initiative that would give residents authority to vote on future urban renewal plans and substantial modifications to URAs — asked the council to pause.

She said 4,000 residents signed the petition to place 301 on the ballot. “It would seem obvious that the public wants a say on this. Wait until Nov. 7 to take up this issue. It would be respectful of the petition process to pause for a few weeks on this to see if voters will have a say.”

The council chose not to delay. It voted 7-2 to ratify the city’s share of the financial agreement for the URA.

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