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.
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.
| 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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