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Loveland - May 6, 2008
The Loveland City Council passed final approval of a controversial annexation agreement for property near Johnstown's current border that
will cost the city an estimated $4.5 million - not including the 25 years of future tax subsidies . Two members of the city council, Cecil
Gutierrez and Kent Solt, both voted against the annexation. While the discussion was amicable, only the two dissenters and Councilman
Klassen appeared ready to discuss any details of the agreement. The majority of the "old guard" on council had no questions and only
spoke when responding to comments or questions posed by the other three.
Councilman Cecil Gutierrez
Councilman Cecil Gutierrez told his colleagues, "Besides the cost factor, the other issue is that we have not dealt with highway 402 in what
I think is a satisfactory manner....this will impact highway 402 sooner rather than later..." He cited the CDOT website that quotes a cost of
$27 million to widen the 402 and argued it would be irresponsible to proceed with the annexation before identifying the sources of funding
for the traffic improvements needed to accommodate the traffic generated by the new developments near the 402 and I-25. Gutierrez also
reminded the council that in so many meetings they attended, whether in Washington, D.C., or locally, the state and federal officials told
them not to rely on new state of federal highway funds in their planning .
Mayor Pielin responded that he believed the failed RTA tax initiative the council supported would have paid for the widening of highway
402. Pielin expressed confidence that given the number of blue ribbon panels studying the issue the RTA tax or something similar will be
imposed in the future to pay for the necessary traffic improvements not considered in the annexation agreement before the council.
Gutierrez responded by pointing out the 25 year subsidy back to landowners doesn't include any funding for widening highway 402 or other
general traffic mitigation. He stated that giving future taxes away while not even paying for the required traffic mitigation isn't something he
can support.
Councilman Kent Solt
Councilman Kent Solt stated, "I have always been on the fence on this one since day one.....after listening to good input from constituents I
have come the conclusion to vote no on the second reading." He stated that while he supports making the 402 a gateway for the city he felt
"we are giving too much away." He said he was on the fence previously since he was concerned about not having the time to work the
issue out with Johnstown through some diplomacy. He said the view that they must make a decision tonight because their back is against
the wall isn't accurate and that he believed there was time to get a better deal.
"My issues are with costs" Kent told his colleagues. "We are talking about $4.5 million in incentives really. $2.6 million for sewer, $1.89
million for water shares and the $125,000 for reimbursement costs."
Councilman Clark responded by saying, "The city will pay very little upfront since we don't have to pay anything until it is developed."
Councilman Klassen questioned his colleague by asking staff if indeed Clark's statement was correct. Staff responded the costs were
always upfront but wouldn't start until an application for development is submitted.
Gutierrez stated, "However, there is no income from those two parcels on the sewer. I just want to clarify there are upfront costs." He
also added "We have tied the councils for the next 25 years to this agreement. If the sewer is built 10 years from now we have tied future
councils to whatever that cost will be." The city staff has changed the estimated cost of the sewer greatly during the negotiation of the
annexation agreement. LovelandPolitics was contacted by one city staff member who alleged the original cost estimate of $3.4 million was
the most accurate but said the city manager had the estimate arbitrarily reduced so the agreement would appear more palitable to the public
and council.
Lovelandpolitics cannot verify if this specific allegation is true but other city staff, when contacted, have confirmed the higher cost of trying
to pump sewage uphill (which will be required) is not being accurately reported to council. One individual stated, "pumping sewage uphill is
a costly nightmare because those pumps, no matter how good they are, break a lot and require maintenance the city manager isn't including
these costs in the estimate to the council." In other words, it is not just the installation cost of a sewer that must go uphill but the ongoing
higher O&M costs the city staff (who asked not to be named) felt the city manager was trying to keep staff from disclosing to the council
before their final vote.
Councilman Walt Skowron
Councilman Walt Skowron announced he flip-flopped on his position and decided he would now support the annexation agreement he
voted against on the first reading. He said the hypothetical development plans he was shown changed his position because he believed the
annexation will allow for growth of new jobs. "I am now supporting this due to the future job opportunities." Skowron stated, "without
jobs we don't have prosperity - so that is why I am supporting this." Given the overwhelming support in Loveland for bringing better jobs
into the community, as reported in the city sponsored survey, a number of new projects or subsidies are being promoted by the Mayor as
creating new job centers.
Larry Heckel, who contributed nothing to the discussion, urged the Mayor to cut-off the discussion by "calling for the question." The
Mayor stated he thought the issue was important and said he would give councilors a chance to speak if they desired on this matter.
Employment Centers
Cecil Gutierrez responded to Skowron's assertion that the annexation is needed to provide a location for companies that might bring new
jobs to the area. Gutierrez responded that "if we take a look at the Maser Plans for the City of Loveland and all the neighboring
communities for every area that is out there in the master pans for employment centers - we have the capacity for 3.2 million people whom
we are only expecting 1 1/2 million people. Now 3.2 million jobs versus 1 1/2 million people makes it mathematically (according to Mr.
Kyle back in my algebra class) almost impossible. So I think we've got ample areas in these master planned areas to accommodate
employment for the next 20 to 30 years."
The Mayor, as is his practice, couldn't resist the temptation to provide a rebuttal to nearly every comment and responded to this comment
by arguing that the city isn't providing anything more than the City of Johnstown gives everyone looking to annex. This argument has been
promoted by the applicants for the annexation but LovelandPolitics obtained a copy of the Johnstown agreements that have no such
incentives (see previous story comparing Johnstown deals to Loveland).
The Council finally voted 7-2 on a series of resolutions and ordinances to approve the annexation with the agreed to conditions as set-forth
in the pre-annexation agreement.
The Loveland City Council passed final approval of a controversial annexation agreement for property near Johnstown's current border that
will cost the city an estimated $4.5 million - not including the 25 years of future tax subsidies . Two members of the city council, Cecil
Gutierrez and Kent Solt, both voted against the annexation. While the discussion was amicable, only the two dissenters and Councilman
Klassen appeared ready to discuss any details of the agreement. The majority of the "old guard" on council had no questions and only
spoke when responding to comments or questions posed by the other three.
Councilman Cecil Gutierrez
Councilman Cecil Gutierrez told his colleagues, "Besides the cost factor, the other issue is that we have not dealt with highway 402 in what
I think is a satisfactory manner....this will impact highway 402 sooner rather than later..." He cited the CDOT website that quotes a cost of
$27 million to widen the 402 and argued it would be irresponsible to proceed with the annexation before identifying the sources of funding
for the traffic improvements needed to accommodate the traffic generated by the new developments near the 402 and I-25. Gutierrez also
reminded the council that in so many meetings they attended, whether in Washington, D.C., or locally, the state and federal officials told
them not to rely on new state of federal highway funds in their planning .
Mayor Pielin responded that he believed the failed RTA tax initiative the council supported would have paid for the widening of highway
402. Pielin expressed confidence that given the number of blue ribbon panels studying the issue the RTA tax or something similar will be
imposed in the future to pay for the necessary traffic improvements not considered in the annexation agreement before the council.
Gutierrez responded by pointing out the 25 year subsidy back to landowners doesn't include any funding for widening highway 402 or other
general traffic mitigation. He stated that giving future taxes away while not even paying for the required traffic mitigation isn't something he
can support.
Councilman Kent Solt
Councilman Kent Solt stated, "I have always been on the fence on this one since day one.....after listening to good input from constituents I
have come the conclusion to vote no on the second reading." He stated that while he supports making the 402 a gateway for the city he felt
"we are giving too much away." He said he was on the fence previously since he was concerned about not having the time to work the
issue out with Johnstown through some diplomacy. He said the view that they must make a decision tonight because their back is against
the wall isn't accurate and that he believed there was time to get a better deal.
"My issues are with costs" Kent told his colleagues. "We are talking about $4.5 million in incentives really. $2.6 million for sewer, $1.89
million for water shares and the $125,000 for reimbursement costs."
Councilman Clark responded by saying, "The city will pay very little upfront since we don't have to pay anything until it is developed."
Councilman Klassen questioned his colleague by asking staff if indeed Clark's statement was correct. Staff responded the costs were
always upfront but wouldn't start until an application for development is submitted.
Gutierrez stated, "However, there is no income from those two parcels on the sewer. I just want to clarify there are upfront costs." He
also added "We have tied the councils for the next 25 years to this agreement. If the sewer is built 10 years from now we have tied future
councils to whatever that cost will be." The city staff has changed the estimated cost of the sewer greatly during the negotiation of the
annexation agreement. LovelandPolitics was contacted by one city staff member who alleged the original cost estimate of $3.4 million was
the most accurate but said the city manager had the estimate arbitrarily reduced so the agreement would appear more palitable to the public
and council.
Lovelandpolitics cannot verify if this specific allegation is true but other city staff, when contacted, have confirmed the higher cost of trying
to pump sewage uphill (which will be required) is not being accurately reported to council. One individual stated, "pumping sewage uphill is
a costly nightmare because those pumps, no matter how good they are, break a lot and require maintenance the city manager isn't including
these costs in the estimate to the council." In other words, it is not just the installation cost of a sewer that must go uphill but the ongoing
higher O&M costs the city staff (who asked not to be named) felt the city manager was trying to keep staff from disclosing to the council
before their final vote.
Councilman Walt Skowron
Councilman Walt Skowron announced he flip-flopped on his position and decided he would now support the annexation agreement he
voted against on the first reading. He said the hypothetical development plans he was shown changed his position because he believed the
annexation will allow for growth of new jobs. "I am now supporting this due to the future job opportunities." Skowron stated, "without
jobs we don't have prosperity - so that is why I am supporting this." Given the overwhelming support in Loveland for bringing better jobs
into the community, as reported in the city sponsored survey, a number of new projects or subsidies are being promoted by the Mayor as
creating new job centers.
Larry Heckel, who contributed nothing to the discussion, urged the Mayor to cut-off the discussion by "calling for the question." The
Mayor stated he thought the issue was important and said he would give councilors a chance to speak if they desired on this matter.
Employment Centers
Cecil Gutierrez responded to Skowron's assertion that the annexation is needed to provide a location for companies that might bring new
jobs to the area. Gutierrez responded that "if we take a look at the Maser Plans for the City of Loveland and all the neighboring
communities for every area that is out there in the master pans for employment centers - we have the capacity for 3.2 million people whom
we are only expecting 1 1/2 million people. Now 3.2 million jobs versus 1 1/2 million people makes it mathematically (according to Mr.
Kyle back in my algebra class) almost impossible. So I think we've got ample areas in these master planned areas to accommodate
employment for the next 20 to 30 years."
The Mayor, as is his practice, couldn't resist the temptation to provide a rebuttal to nearly every comment and responded to this comment
by arguing that the city isn't providing anything more than the City of Johnstown gives everyone looking to annex. This argument has been
promoted by the applicants for the annexation but LovelandPolitics obtained a copy of the Johnstown agreements that have no such
incentives (see previous story comparing Johnstown deals to Loveland).
The Council finally voted 7-2 on a series of resolutions and ordinances to approve the annexation with the agreed to conditions as set-forth
in the pre-annexation agreement.
| Council Votes 7-2 On Annex Agreement Olsen Farm 1st and 2nd addition annex agreement approved by council click here to see index page of previous stories on this annexation |
| file photo of the city council |