Loveland URA board votes to ratify new financing for Centerra South

LOVELAND — Members of the Loveland Urban Renewal Authority Tuesday night voted to ratify the amended financial agreement that will support construction of infrastructure for the Centerra South residential and commercial development in Loveland.

In two 9-4 votes — one that added Larimer County’s participation in the plan and the other that re-ratified the tax-increment financing arrangements with the other taxing authorities and lowered the city sales-tax contribution from 1.75% to 1.25% — the commission moved the project to just one vote away from final approval.
That final vote, which will occur at the Loveland City Council meeting Oct. 17, will, if approved, cement the deal in place and permit the developer, McWhinney Real Estate Services Inc., to move forward with lease agreements with potential tenants such as the Whole Foods store that has been touted as a participant in the project.

Earlier Tuesday, the Larimer County Board of Commissioners voted 2-1 to sign an intergovernmental agreement that would divert 65% of incremental — or new — county property-tax revenue at Centerra South to the development of infrastructure. Loveland had already committed to devote 100% of its incremental property-tax revenue to it as well as a share of sales taxes generated as retail businesses open their doors.

Tuesday night’s vote by the LURA was somewhat expected because no members of the LURA board changed their minds from previous votes. One new member of the board, Erin Black, joined since the previous votes; she was named as a replacement for Steve Johnson, who resigned.

Public comments included both positive and negative positions on the development, with several speakers asking for a delay to permit voters to decide on Nov. 7 whether they will have the authority to have a final say on URA developments. Other speakers said the project should be approved because it will improve the region’s economy and lifestyle.

Board members traded barbs, accusations and sometimes heated rhetoric during their debate. 

Mayor Jacki Marsh, who is on the LURA board as a commissioner, accused the city of negotiating with Larimer County in bad faith.

“From my perspective, the city did not negotiate in good faith with the county. We kept them in the dark for two years. Maybe not from a legal perspective but from the spirit of good faith. The harm done to the city’s reputation in its relationship with the county is long lasting.”

Commissioner Andrea Samson countered that the county staff has said the process was good and “I don’t believe there was reputational harm done, other than from the divisive language that has been used.”

Jody Shadduck-McNally, who chairs the Larimer County board and also is a LURA commissioner, said she felt disrespected in the process. “I feel the process has not unfolded as it is portrayed in this chamber.” She said she has been “singled out with microaggressions” and was disappointed with the “lack of decorum.”

Commissioner Richard Ball disagreed with how negotiations were characterized. He said that “sending a representative to the state to try to end run the city has caused irreparable damage to the relationship with the county. That broke that bond,” he said in reference to an attempt during the legislative session to change state law to preclude the city from moving ahead with the project. A bill passed, but the governor vetoed it. 

Ball also said that McWhinney “has overperformed, built better projects with better outcomes. I believe it will use its best efforts to bring the children’s museum here and follow through on the (low-income) housing issue.” 

Patrick McFall said the project is good for the city. “I fight because this is good for the city of Loveland, not because it’s good for the developer.

“I was voted in to do the work before me today, not what may or may not happen tomorrow,” he said in reference to the request from some commissioners to delay until after Nov. 7.

Commissioner Don Overcash thanked city staff, the developer, citizen commenters and everyone involved for putting in the work over 10 months. “I’ve seen how the process has resulted in changes to the project,” he said, and cited the removal of oil and gas drilling from the property, and the addition of amenities such as affordable housing, which was not in the original plan. “These came about because of citizen comments,” he said.