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Election Night Antics Council Pulls Last Teeth Out of McWhinney Tax Agreement |
Click on pages below to enlarge (images from 2004 MFA) |
McWhinney Controlled Centerra has accumulated over $124 million in debt city report provided to council copied below "The 2011 Loan was initially funded by the Lenders, pursuant to their pro rata share, in the amount of $120,920,000. The remaining $10,000,000 was retained by the Lenders and is made available to the District through multiple advances until September 1, 2014, provided that certain assessed valuation tests are met. The District was advanced $1,548,665 and $6,852,944 in 2011 and 2012, respectively. Currently, $1,598,391 remains available to be advanced to the District. The 2011 Loan matures on June 8, 2016. At or prior to maturity, the District anticipates entering into a new loan agreement or remarketing the debt in the form of bonds. The 2011 Loan requires annual principal payments starting on December 1, 2011. A principal payment of $2,650,000 was paid in 2012. The current outstanding principal balance is approximately $124,121,609. The 2011 Loan provides for a variable rate of interest. There are two different interest rate exchange agreements (swaps) relating to amounts under the 2011 Loan. The larger swap is with the Royal Bank of Canada for a current notional amount of $106,570,000 (with annual principal reduction), a fixed interest rate of 5.5225% (3.46% swap rate plus 2.0625% bank fees), and a final termination date of Dec 1, 2029. The smaller swap is with the BBVA for a current notional amount of $9,150,000 (with annual principal reduction), a fixed interest rate of 3.556%, and a final termination date of June 8, 2016. |
Despite claims by city staff and McWhinney that all regional improvements have been completed, the $50 million contribution to a final widening of the Highway 34 overpass of I-25 has not been funded. Below is the schematic provided by McWhinney in the 2004 MFA which was later sold to the public as a primary benefit of the agreement. |
Centerra's Evolving History During a council study session last July, Jay Hardy of McWhinney argued bringing jobs to Loveland was the primary motive behind his company's 2004 Master Financing Agreement with the City of Loveland. On the contrary, the architects of the city's 2004 Master Financing Agreement with McWhinney created Centerra to obtain new sources of city revenue by incentivising retail to locate in Loveland for the primary purpose of funding regional transportation improvements using diverted property and sales taxes. As documented by LovelandPolitics in July of 2007(six years earlier), Mayor Walsh was appalled at even the suggestion of Centerra being used to subsidize non-retail commercial development. On election night 2013 the Loveland City Council removed the city's last leverage to guard Centerra revenue for regional transportation improvements while Centerra continues to fall short of its advertised PIF (sales tax fee) revenue goals. |