‘Uncertain,’ but Loveland developments continue 

LOVELAND — “Uncertainty” might be the operative term for those doing or seeking to do business in Loveland.

Since the 2023 City Council election, economic activity has taken a definite unsettled tone. Projects that were underway have continued unabated. Those considering new projects may have hesitated if the work required City Council signoff, according to business leaders in the community. No one knows for sure what the impacts might have been.

In 2023, the Loveland City Council approved a new Urban Renewal Area and master finance agreement with McWhinney Real Estate Services Inc. to develop a billion-dollar development called Centerra South. The property is south of U.S. Highway 34 and the existing Centerra in east Loveland.

The project was not immune from controversy as numerous council meetings included comments from members of the public opposed to incentive agreements to make the project happen. The council approved the URA and finance agreement anyway in anticipation of the location of a Whole Foods Market and a major primary employer within the development. Numerous other retail, office and housing elements were also to be included in the plan.

But after council elections in November, a new majority took command of the council. One of its first acts was to rescind the URA and development agreement. That resulted in a lawsuit that ultimately was settled with McWhinney agreeing to pay $750,000 in exchange for restoration of the URA and a promise to protect it from future legal challenges.

Chad McWhinney, co-founder and CEO, told BizWest that the company was confident of success in court but was concerned about the length of time to get a resolution. 

“We were going to win the battle but lose the war,” he said, in reference to companies that McWhinney is recruiting that he said were not going to wait for the drama to play out.

The on-again off-again Centerra South debate was just the start.

The new council attempted to fire City Manager Steve Adams and City Attorney Moses Garcia. In both cases, because the city charter requires a supermajority in order to hire or fire for those positions, the new council was unable to do what it wanted, how it wanted. So it instead negotiated exit agreements with the pair. Municipal Judge Geri Joneson also resigned — creating a clean sweep of the three positions that directly report to the council.

City economic development director Kelly Jones-Sage also resigned and took a position in private industry. She cited a toxic atmosphere in the city as her reason. 

Other lawsuits were filed — two by citizens alleging charter violations at the hands of the new council, and two by an individual who claimed open meeting violations by the former council during the lead-up to the approval of Centerra South. Both of those open meeting lawsuits were dismissed, but the charter-violation cases remain active.

The new council then took the open-meeting allegations in the lawsuits that were dismissed and hired a special prosecutor, Christopher Gregory, to investigate whether they had merit. A second special prosecutor was hired to evaluate whether criminal violations occurred at the hands of the former council. That prosecutor, Kathy Haddock, declined to file criminal charges, saying that she did not find probable cause. The Gregory investigation, as of April 30, was closed. 

The council also took immediate steps after swearing in to declare a moratorium on new metropolitan districts, a financing technique used 23 times in Loveland history to help developers pay for infrastructure within their developments. The technique permits a developer to issue bonds now that are repaid by future property owners in the development. 

Members of the council expressed concerns about impacts on those future property owners. In a work session April 9, council members indicated a willingness to let the moratorium expire, but they wanted additional safeguards put in place to protect future residents.

Meanwhile, the city maintains an economic-development department that continues to work recruiting new employers and assisting existing businesses.

The department’s interim director, long-time resident Marcie Willard, expressed optimism that the city will be able to navigate the speed bumps. “Our main focus hasn’t changed,” she said.

“We have a couple of European companies looking at Loveland,” she told BizWest. Both are in the clean-energy industry. She said grocers “are looking at multiple locations.” And the city is seeing requests for information on large footprint buildings with high-use utility capability. 

Willard said her department and the city as a whole “have a lot of tools, and small business is foundational.” She said the public often sees only the large incentive deals but there’s more than that going on. 

“We’ll continue to do the large projects” while also connecting existing small businesses with the resources they need to thrive. “We’re in a difficult political climate, but that’s the public process,” Willard said.

She’s hopeful that the council’s discussion about metro districts will consider the impact of using that tool for commercial developments.

Willard noted several projects underway in the city that have not been affected by recent headwinds. Among them:

The new passenger terminal at the Northern Colorado Regional Airport will open opportunities. “The airport is an underutilized asset,” she said.

Discovery Air’s initiative to lure a U.S. Customs Office to the airport will assist existing businesses such as Nutrien and Woodward as well as assist others. “We may not know who we’re missing,” she said.

Loveland Yards — the former Outlets of Loveland — has come to life with multiple retail and service-related businesses already located there. It won’t be the same as what existed before but will be an important component in the city’s commercial property sector because it provides commercial condominiums for purchase, as well as lease.

Downtown is seeing commercial momentum, she said, with HIP Streets nearing its start. HIP Streets stands for Heart Improvement Program with a focus on improvements to Fourth Street. “It will be truly transformational,” she said.

The Draper redevelopment project on the northeast corner of Fourth Street and Lincoln Avenue also will be getting underway soon with the parking garage piece developed first or in parallel with the rest.

The old Albertson’s grocery store on east Eisenhower, which has sat vacant for years because it was under a long-term lease, will soon see the end of the lease. “It is seeing interest from redevelopers,” she said.

Texas developer Hines has completed its warehouse/distribution buildings on Byrd Drive near the Northern Colorado Regional Airport. It is actively leasing those buildings, Willard said.

Nick Roe, who chairs the Loveland Business Partnership, also was optimistic about the economic climate in Loveland, although he noted concern about the loss of long-time leaders such as the city manager and attorney at city hall.

“I think overall the business community is concerned with the litigation and with the exiting of the leadership in the city. The turnover is definitely something the business community is talking about,” Roe said.

“You hope the city is not wasting time and resources on things they don’t understand. You hope the council is being diligent with taxpayer money and not wasting resources,” he said.

The business community “is trying to enhance Northern Colorado, and there’s excitement about the dynamics we have in this very special community,” he said. He cited multiple projects, including those that Willard also mentioned.

The Forge Campus, he said, is “gaining momentum as a recruiting tool for business.” The Warehouse Business Accelerator, which is located at the Forge, also is helpful for Stage 2 companies needing a nudge to reach the next level.

The largest project in the city, perhaps in the city’s history, is the under-construction Amazon fulfillment warehouse located north of the Northern Colorado Regional Airport. The massive, 3.5 million-square-foot structure is expected to open next year unless the company delays it. Hiring of the 1,200 to 1,500 people expected to be employed there may begin as soon as this fall. The construction cost of the project is about $400 million, according to company sources.

Also on the cusp of development is a Bass Pro Shops, a coveted outdoor retailer that is considering locating in Martin Lind’s The Brands commercial development near The Ranch fairgrounds and event center. The project has stalled of late, according to an email from Lind to the city, because of new requirements that the city is attempting to impose on Bass. 

As described by Lind, Larimer County changed the traffic flow at the Ranch, and the city now wants a new traffic study to be paid for by Bass. 

“The county has told us these plans (for a new traffic pattern) were approved by Loveland to accommodate the new anticipated 10,000-seat arena and youth sport complex. While we fully support the approval of these uses, it’s impossible for me to understand why my retailer is the one now burdened with a new traffic study…,” Lind wrote.

For business, it’s become a season of waiting and watching to see what the impacts on development and business operations might be. Council members say that they’re responding to constituents and that elections have consequences. 

How it all shakes out will likely not be known until months from now, yet both business and government continue to strive for stability.

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