| LovelandPolitics.com |
Loveland - July 20, 2009
McWhinney’s inability to contribute even a portion of the monies it advertized the Centerra Metro District would
contribute to improvements at Crossroads Blvd. and the I-25 is putting the $3,000,0000 of federal stimulus money
for the project in jeopardy. The Metro District is facing a deadline of July 30, 2009 to fund its contribution. The
money will now come as a type of "bail out" from another fund.
Earlier this year the McWhinney Company apparently mislead Loveland’s City Council and other regional governments
by assuring them McWhinney had funds available to contribute to the I-25 and Crossroads interchange improvements
without dipping into an escrow account established to protect funds for the I-25 and U.S. 34 improvements between
McWhinney’s Metro District and the City of Loveland.
On Tuesday night (July 21, 2009) the Loveland City Council is now being asked to transfer monies from an escrow
account established to protect funds for the I-25 and U.S. 34 improvements over to the Crossroads and I-25 project to
cover McWhinney’s promised contribution -- the appropriation of the funds is being handled as an emergency measure
by the city.
The staff report to council appears to mislead the elected officials by arguing the Crossroads project is exceeding earlier
estimates thus necesitating the transfer of funds. In fact, the low-bidder for the Crossroads project, Jalisco International
of Commerce City, bid only $4,886,511 to construct the improvements while the estimate for the construction was
$5,000,000 thus saving $113,489 of the expected cost.
McWhinney is asking to remove $490,000 from the I-25 / U.S. 34 account but only proposes transferring $414,000 to
the Crossroads project. The remaining $76,000 McWhinney is looking to place into their Metro District general
account. While the official city documents identify the future use of those transfered funds as “public improvements” this is
an often abused term. McWhinney’s Metro District has used such funds to construct signs advertising Centerra,
landscaping and make other general improvements to their commercial projects while calling them “public improvements.”
Ironically, the excuse for removing nearly half a million dollars from an escrow fund for a project they are now over a year
delinquent in starting is because the “estimates” are less than originally anticipated for the I-25/US 34 improvements.
McWhinney promised council to have the contract signed for the construction "within 60 days" at the beginning of the
summer. Now McWhinney is telling council there is no choice but to raid the I-25 / U.S. 34 funds or risk loosing the $3
million in stimulus money for Crossroads.
McWhinney appears to have artificially inflated the estimates for the Crossroads project last year to $6.4 million. This
allowed the City of Loveland to make the argument that the stimulus money and other federal funds were not supplanting
any part of McWhinney’s Metro District’s obligation and claim McWhinney’s Metro District was contribution $1.2
million. However, McWhinney is claiming a cost of nearly $1 million for preparing the original drawings and plans so a
large portion their “contribution” is really soft costs for expenditures they already made in the past using the taxpayer funds
from the Metro District.
The $414,000 now being requested appears to be the only cash required to close the project on top of the more than $ 4
million provided by various federal sources including the $3 million for the stimulus. It appears in retrospect McWhinney
was indeed relying on funds set-aside for the I-25 and U.S. 34 interchange improvements despite telling the Loveland
City Council they were not in a public meeting that was taped and broadcast.
In correspondence with CDOT (Colorado Department of Transportation) Loveland’s City Manager appears to have also
mislead the state organization when applying for stimulus funds evidenced by the following statement by CDOT in a
previous Loveland Politics story;
"In the case of the Crossroads Roundabouts, the dedicated funding is coming through Windsor, Loveland and the URA.
As we heard at the meeting, the agreement for funding is split between the three, with an original cost estimate of $3.6M.
The estimate is now over $6M, and the $3M on the stimulus list is a placeholder to "make whole" the project. It is not to
replace any of the funding already identified."
Now, Loveland City Manager Don Williams is providing the following explanation to the City Council regarding the
transfer of funds request:
“At the March 24, 2009 meeting, City Council approved Inter-Governmental Agreements (IGA’s) between the City and
the Centerra Metropolitan District No. 1 and the City and Colorado Department of Transportation (CDOT) for the
construction and maintenance of the interim improvements to the I-25/Crossroads Boulevard Interchange. Included within
the IGA’s was language related to the funding from the Centerra Metropolitan District No. 1 ($1,291,600) and Federal
Funds through CDOT ($4,159,560 consisting of $3,000,000 from ARRA and $1,159,560 from STP Metro), totaling
$5,451,160, for this project.
Upon receipt of the bids and tabulation of all costs related to the construction and construction administration, materials
testing, and City and CDOT oversight for this project, it was determined that the total cost was $5,865,160 and that an
additional $414,000 was necessary to make the project whole. The additional funds have been made available from the
Centerra Metropolitan District No. 1. This item appropriates the additional funds so that they are available for obligating
all the contracts.”
This would indicate McWhinney's Centerra District 1 short of money to fund obligations despite assurances McWhinney
company officials made to the contrary.
McWhinney’s inability to contribute even a portion of the monies it advertized the Centerra Metro District would
contribute to improvements at Crossroads Blvd. and the I-25 is putting the $3,000,0000 of federal stimulus money
for the project in jeopardy. The Metro District is facing a deadline of July 30, 2009 to fund its contribution. The
money will now come as a type of "bail out" from another fund.
Earlier this year the McWhinney Company apparently mislead Loveland’s City Council and other regional governments
by assuring them McWhinney had funds available to contribute to the I-25 and Crossroads interchange improvements
without dipping into an escrow account established to protect funds for the I-25 and U.S. 34 improvements between
McWhinney’s Metro District and the City of Loveland.
On Tuesday night (July 21, 2009) the Loveland City Council is now being asked to transfer monies from an escrow
account established to protect funds for the I-25 and U.S. 34 improvements over to the Crossroads and I-25 project to
cover McWhinney’s promised contribution -- the appropriation of the funds is being handled as an emergency measure
by the city.
The staff report to council appears to mislead the elected officials by arguing the Crossroads project is exceeding earlier
estimates thus necesitating the transfer of funds. In fact, the low-bidder for the Crossroads project, Jalisco International
of Commerce City, bid only $4,886,511 to construct the improvements while the estimate for the construction was
$5,000,000 thus saving $113,489 of the expected cost.
McWhinney is asking to remove $490,000 from the I-25 / U.S. 34 account but only proposes transferring $414,000 to
the Crossroads project. The remaining $76,000 McWhinney is looking to place into their Metro District general
account. While the official city documents identify the future use of those transfered funds as “public improvements” this is
an often abused term. McWhinney’s Metro District has used such funds to construct signs advertising Centerra,
landscaping and make other general improvements to their commercial projects while calling them “public improvements.”
Ironically, the excuse for removing nearly half a million dollars from an escrow fund for a project they are now over a year
delinquent in starting is because the “estimates” are less than originally anticipated for the I-25/US 34 improvements.
McWhinney promised council to have the contract signed for the construction "within 60 days" at the beginning of the
summer. Now McWhinney is telling council there is no choice but to raid the I-25 / U.S. 34 funds or risk loosing the $3
million in stimulus money for Crossroads.
McWhinney appears to have artificially inflated the estimates for the Crossroads project last year to $6.4 million. This
allowed the City of Loveland to make the argument that the stimulus money and other federal funds were not supplanting
any part of McWhinney’s Metro District’s obligation and claim McWhinney’s Metro District was contribution $1.2
million. However, McWhinney is claiming a cost of nearly $1 million for preparing the original drawings and plans so a
large portion their “contribution” is really soft costs for expenditures they already made in the past using the taxpayer funds
from the Metro District.
The $414,000 now being requested appears to be the only cash required to close the project on top of the more than $ 4
million provided by various federal sources including the $3 million for the stimulus. It appears in retrospect McWhinney
was indeed relying on funds set-aside for the I-25 and U.S. 34 interchange improvements despite telling the Loveland
City Council they were not in a public meeting that was taped and broadcast.
In correspondence with CDOT (Colorado Department of Transportation) Loveland’s City Manager appears to have also
mislead the state organization when applying for stimulus funds evidenced by the following statement by CDOT in a
previous Loveland Politics story;
"In the case of the Crossroads Roundabouts, the dedicated funding is coming through Windsor, Loveland and the URA.
As we heard at the meeting, the agreement for funding is split between the three, with an original cost estimate of $3.6M.
The estimate is now over $6M, and the $3M on the stimulus list is a placeholder to "make whole" the project. It is not to
replace any of the funding already identified."
Now, Loveland City Manager Don Williams is providing the following explanation to the City Council regarding the
transfer of funds request:
“At the March 24, 2009 meeting, City Council approved Inter-Governmental Agreements (IGA’s) between the City and
the Centerra Metropolitan District No. 1 and the City and Colorado Department of Transportation (CDOT) for the
construction and maintenance of the interim improvements to the I-25/Crossroads Boulevard Interchange. Included within
the IGA’s was language related to the funding from the Centerra Metropolitan District No. 1 ($1,291,600) and Federal
Funds through CDOT ($4,159,560 consisting of $3,000,000 from ARRA and $1,159,560 from STP Metro), totaling
$5,451,160, for this project.
Upon receipt of the bids and tabulation of all costs related to the construction and construction administration, materials
testing, and City and CDOT oversight for this project, it was determined that the total cost was $5,865,160 and that an
additional $414,000 was necessary to make the project whole. The additional funds have been made available from the
Centerra Metropolitan District No. 1. This item appropriates the additional funds so that they are available for obligating
all the contracts.”
This would indicate McWhinney's Centerra District 1 short of money to fund obligations despite assurances McWhinney
company officials made to the contrary.
| McWhinney Doesn't Have Funds For Crossroads Stimulus money in jeodardy - Asks for monies from I-25/US 34 improvement fund |