Loveland's City Manager has sent a letter to the RTA (Regional Transportation
Authority) Steering Committee in an attempt to quell concerns that the proposed
RTA sales tax will constitute a double tax on shoppers in Loveland already paying
the McWhinney sales tax increases. Williams also sent a letter to the Mayor of
Ft. Collins defending the diversion of RTA money into McWhinney projects
Loveland taxpayers already were promised would be completed by the 25 years
of tax diversion.
Loveland already diverts sales tax dollars from shoppers at Centerra into a
McWhinney controlled quasi-governmental organization in exchange for promises
(contained in the Master Financing Agreement) to make certain public
improvements in the area. In addition, property tax revenue is also being diverted
away from traditional city services in order to fund the infrastructure the traffic
generated by the project demands. Not coincidentally, Richard Shannon, an
employee of McWhinney Enterprises, is a member of the RTA steering
committee pushing to have the same projects funded with new sales taxes
generated by the RTA. Some Lovelanders are calling it a "bait and switch."
The letter states "Some mistakenly believe this interchange needs to be improved
solely due to Centerra." Williams goes on to argue that "We believe the RTA
funds will not be used to let the developer off the hook."
However, in the very same letter states; "Funding that might have been used
for this interchange will instead be available for other important public
improvements." This statement appears to acknowledge the fact the RTA
money will be used INSTEAD of Centerra's tax revenues thus freeing up diverted
tax dollars for Centerra to use in other areas not approved or agreed upon by the
City Council or Loveland taxpayers.
Loveland's City Council has been criticized in the past for using the term very
loosely and since they already turned control of the funds over to a developer for
the next 25 years, it is unlikely the public will have any say in how that money is
finally spent once the specific obligations in the original agreement between the
McWhinneys and the City of Loveland are satisfied by an additional tax upon
Loveland shoppers for the same improvements.
If the sales tax at Centerra really was never intended to improve the I-25 and
Highway 34 interchange completely, as Williams claims, this may come as a
surprise to Loveland residents who defended the tax diversion to the
McWhinneys as a method for improving that specific interchange. In addition, a
midnight amendment to the MFA between the the City and McWhinneys now
allows for other funds to be used to meet their obligations.
Loveland taxpayers were not the only people who were sold the idea the tax
dollars would be used to complete the improvements over the I-25. County
Manager Frank Lancaster even defended the County's loss of $88 million in
future property taxes when the urban renewal project was created for the
McWhinneys. He was quoted in the Loveland Reporter-Herald stating that the
money would fix the traffic problems on roads in East Loveland where Highway
34 meets the I-25.
The January 7, 2004 article by Dave Brendsel stated "If approved by the
council, the new urban renewal area would fund road improvements the Ranch
and other area businesses need," Lancaster said. "Namely, rebuilding the
Crossroads Boulevard and U.S. 34 interchanges with I-25."
Another story by the Loveland Reporter-Herald on Janaury 23, 2005 by Rachel
Carter stated;
Loveland officials signed off on a $591 million incentive agreement with
McWhinney Enterprises one year ago¦ As part of the incentives agreement,
McWhinney Enterprises promised five regional improvements, which include
improvements to the I-25 and U.S. 34 cloverleaf and the Crossroads Boulevard
interchange.
The company also plans to extend Centerra Parkway to connect with Crossroads
Boulevard, and build two U.S. 34 "flyovers" at Centerra Parkway and Larimer
County Road 3.
Williams' letters to the RTA Steering Committee and elected officials now claims
that the MFA never intended to fully fund any the needed improvements.
Authority) Steering Committee in an attempt to quell concerns that the proposed
RTA sales tax will constitute a double tax on shoppers in Loveland already paying
the McWhinney sales tax increases. Williams also sent a letter to the Mayor of
Ft. Collins defending the diversion of RTA money into McWhinney projects
Loveland taxpayers already were promised would be completed by the 25 years
of tax diversion.
Loveland already diverts sales tax dollars from shoppers at Centerra into a
McWhinney controlled quasi-governmental organization in exchange for promises
(contained in the Master Financing Agreement) to make certain public
improvements in the area. In addition, property tax revenue is also being diverted
away from traditional city services in order to fund the infrastructure the traffic
generated by the project demands. Not coincidentally, Richard Shannon, an
employee of McWhinney Enterprises, is a member of the RTA steering
committee pushing to have the same projects funded with new sales taxes
generated by the RTA. Some Lovelanders are calling it a "bait and switch."
The letter states "Some mistakenly believe this interchange needs to be improved
solely due to Centerra." Williams goes on to argue that "We believe the RTA
funds will not be used to let the developer off the hook."
However, in the very same letter states; "Funding that might have been used
for this interchange will instead be available for other important public
improvements." This statement appears to acknowledge the fact the RTA
money will be used INSTEAD of Centerra's tax revenues thus freeing up diverted
tax dollars for Centerra to use in other areas not approved or agreed upon by the
City Council or Loveland taxpayers.
Loveland's City Council has been criticized in the past for using the term very
loosely and since they already turned control of the funds over to a developer for
the next 25 years, it is unlikely the public will have any say in how that money is
finally spent once the specific obligations in the original agreement between the
McWhinneys and the City of Loveland are satisfied by an additional tax upon
Loveland shoppers for the same improvements.
If the sales tax at Centerra really was never intended to improve the I-25 and
Highway 34 interchange completely, as Williams claims, this may come as a
surprise to Loveland residents who defended the tax diversion to the
McWhinneys as a method for improving that specific interchange. In addition, a
midnight amendment to the MFA between the the City and McWhinneys now
allows for other funds to be used to meet their obligations.
Loveland taxpayers were not the only people who were sold the idea the tax
dollars would be used to complete the improvements over the I-25. County
Manager Frank Lancaster even defended the County's loss of $88 million in
future property taxes when the urban renewal project was created for the
McWhinneys. He was quoted in the Loveland Reporter-Herald stating that the
money would fix the traffic problems on roads in East Loveland where Highway
34 meets the I-25.
The January 7, 2004 article by Dave Brendsel stated "If approved by the
council, the new urban renewal area would fund road improvements the Ranch
and other area businesses need," Lancaster said. "Namely, rebuilding the
Crossroads Boulevard and U.S. 34 interchanges with I-25."
Another story by the Loveland Reporter-Herald on Janaury 23, 2005 by Rachel
Carter stated;
Loveland officials signed off on a $591 million incentive agreement with
McWhinney Enterprises one year ago¦ As part of the incentives agreement,
McWhinney Enterprises promised five regional improvements, which include
improvements to the I-25 and U.S. 34 cloverleaf and the Crossroads Boulevard
interchange.
The company also plans to extend Centerra Parkway to connect with Crossroads
Boulevard, and build two U.S. 34 "flyovers" at Centerra Parkway and Larimer
County Road 3.
Williams' letters to the RTA Steering Committee and elected officials now claims
that the MFA never intended to fully fund any the needed improvements.
| Click here to read the letter from Loveland's City Manager, Don Williams, to Ft. Collins' Mayor on Behalf of McWhinneys |
| Loveland City Manager Sends Letter To RTA Steering Committee Denying "Bait and Switch" on Centerra Funding |
| “Loveland officials signed off on a $591 million incentive agreement with McWhinney Enterprises one year ago……. As part of the incentives agreement, McWhinney Enterprises promised five 'regional improvements,' which include improvements to the I- 25 and U.S. 34 cloverleaf and the Crossroads Boulevard interchange. " Loveland Reporter-Herald January 12, 2005 by Rachel Carter |
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