Should Loveland Stop Giving Incentives For Employers to Locate In Centerra?

May 16th, 2012

Recently, we heard complaints by advocates for Loveland’s Fire Department and the Thompson Valley School District over Loveland’s Economic Development Program.

Loveland’s competition with north Johnstown (25/34) area on the inside southeast corner of the I-25 and Highway 34 is causing concern for those struggling to raise money for local schools.

While it may seem counter-intuitive, every potential light manufacturer or office building Loveland can draw away from building in Johnstown is hurting services for Loveland residents see story

While businesses locating in Centerra certainly face significant property taxes, most of the Mill Levies they pay for schools, emergency medical, water district, Larimer County and even the City of Loveland never reach those entities. This is due to Loveland’s declaration of hundreds of acres as “blight” thus allowing McWhinney to divert all additional property taxes towards their own metro districts instead.

As an example, a $10 million office building constructed in Johnstown north will generate $340,000 annually for all those entities (except City of Loveland).

If the same building is constructed in Centerra than no additional revenue wil be collected because any improved value in the property is diverted to the Urban Renewal scheme.

Simply put, Loveland residents who don’t want to pay higher taxes to support our schools, emergency services and county (like jail expansion) need to support local development anywhere but in Centerra’s urban renewal areas. If successful in a current negotiation to attract another Loveland company into Centerra instead of Johnstown, Loveland will strike another large financial blow to those services.

Loveland’s City Council needs to consider the fiscal impact of their decisions on the residents they represent. Instead of raising taxes on everyone else or continue cutting back our services, why not show the courage to make McWhinney return even a modest amount?

Management is efficiency in climbing the ladder of success; leadership determines whether the ladder is leaning against the right wall.
~Stephen R. Covey

GOP Chair Declares Bankruptcy

May 9th, 2012

Michael Fassi, Chairman of the Larimer County GOP, filed for Chapter 13 bankruptcy along with his wife who served as the Larimer County GOP Treasurer, Terri Fassi, to avoid paying a $170,252 civil judgment in a case they filed. see the story

While the financial credit of public figures isn’t always newsworthy, this time it is given Fassi’s wife’s history working with Larry Carillo and the circumstances under which he and his wife filed for bankruptcy. Anyone who believes he can restore faith in the management of campaign contributions by the party or restore the party’s overall image after the Carillo affair is delusional.

The Fassi’s filed bankruptcy to avoid paying a civil judgment in a case his wife filed against the purchasers of their company, Fassi Financial Networks, LLC. The buyer stopped paying after discovering Michael Fassi was soliciting clients behind their backs they thought were sold with the business.

The Fassi’s argument in court appears to be the technicality that Michael didn’t own or sell the business and therefore was free to poach former clients from the buyers despite a sales agreement prohibiting such behavior. Obviously, the judge didn’t agree and sided with the defendants.

The defendants in the case, Ron Marshall and Darryl Boyd, were expected to pay if the Fassi’s prevailed. Instead, Marshall and Boyd won but have to pay anyway since the Fassi’s are now filing Chapter 13 to avoid paying the attorney fees they forced the defendants to incur defending themselves from what appears to be a frivolous lawsuit by the Fassi’s.

Secret Motives Behind Council Support of “Amendment 9″

May 9th, 2012

Please take a minute to read our in-depth story regarding the real motives behind the May 1, action by Loveland’s City Council regarding Amendment 9, to Centerra’s Millennium GDP (General Development Plan).

Loveland Mayor Cecil Gutierrez, elected on a promise of bringing more transparency and greater public involvement to city government, carefully orchestrated the 8-1 vote May 1, on Amendment 9 that shut the door in the public’s face regarding future Centerra developments. In a single vote, the city council took away its own authority and the obligation for public notice for most any future commercial or industrial developments within Centerra except when bordering occupied or platted single family residential lots. No exception was made for apartment dwellers who were thrown under the bus by allowing industrial manufacturing next door to multi-family without any prior notice or even review by elected officials.

Speaking against the sweeping changes embodied within Amendment 9 was the largest retail land owner in Centerra, Promenade Shops, a local developer, Ed Klen, and the Chairman of Loveland’s Planning Commission, Buddy Meyers. Centerra residents concerned about potential oil and gas drilling left the meeting early believing a promised vote on a moratorium resolved their potential issue with Amendment 9.

In a nutshell, Jennifer Biever representing the Promenade Shops said it best when she told the council, “As drafted, the public review amendments far exceed the types of developments that are articulated as the intent by the city’s economic development department.”

For longtime council watchers it was déjà vu. Same old McWhinney tricks just different a different council. The “public process” to approve Amendment 9 included an incomplete public notice (missing critical changes not disclosed in the public meeting by McWhinney) and hasty Planning Commission approval where members of the Planning Commission were given only a break in their meeting to read a 95 page report by the Promenade Shops opposing the change. In the end, a council meeting where inane talking points like “level the playing” field were repeated by councilors who apparently didn’t understand they were arguing in favor of the 10% of the changes nobody argued against.

Typical of a McWhinney strategy, a secret Loveland employer will apparently bring many jobs to Loveland only if council acts quickly to pass an Amendment to the Millennium GDP that 90% of the changes have nothing to do with that specific situation. Elected officials appear unreasonable to those not briefed on the secret motive for haste while important stake holders in east Loveland (Promenade and Klens) appear foolish because they are unable to address arguments made in secret during ex-parte communication with members of council.

McWhinney’s motives for keeping the name of the specific company secret are many. However, one important concern is the jobs are already in Loveland so by moving an existing company to the tax free Centerra properties could likely cost the city revenue as another area of light industrial blight will be created in west Loveland. We cannot respond to arguments made in secret, but assume Betsey Hale’s (Director of Economic Development) assertion the company will consolidate other area jobs mitigates that concern.

Staff tell us they believe the company is Woodward Governor on Wilson Blvd. in Loveland but we aren’t sure if that is accurate information or smoke they are blowing our way to conceal the name of the real company. Just as with the former McWhinneycrat council, the public meetings were simply a nuisance as staff and applicant controlled the process already knowing the outcome before the meeting even began.

City Protest Letter To Secretary of HUD

May 7th, 2012

We have posted a video clip of the May 1, Loveland City Council discussion on the city’s protest letter to HUD.

It is very disappointing to see both Mayor Gutierrez and Councilwoman Joan Shaffer cooperating with a foolish game of pretending a letter by the City of Loveland to the U.S. Secretary of Housing and Urban Development (HUD) is merely an administrative action undeserving of the council’s attention or input.

Loveland’s Housing Authority (an independent organization) Director, Sam Betters, cooked-up the scheme of trying to overturn a decision by HUD that the city violated certain rules pertaining to federal grants he used for Mirasol Senior Housing. Instead of engaging at the proper level within HUD, Betters is claiming a Denver law firm he hired will receive preferential treatment by the Obama Administration due to political contributions the partners made to Obama’s campaign.

An ill advised City Manager, Bill Cahill, is taking the bait and directing staff to try and go over local HUD authority, Leroy Brown, hoping the Denver law firm along with Sam Betters’ claim of political clout will win the day. In the end, it was Betters who violated the grant money restriction by forcing seniors to pay a “voluntary” fee thus placing their rents over what was allowed under the grant. We understand Loveland’s Housing Authority indemnified Loveland for any potential financial liability so it really is a Housing Authority problem and not the city’s to repay any ill-gotten monies.

Some on council (like Shaffer) along with staff attempted to say the protest letter to a member of the President’s Cabinet was simply a routine “Administrative” function unworthy of the council’s attention! Councilman Hugh McKean was having so part in the hoax and aired his complaints. Even more shocking were the comments by Chauncey Taylor who clearly didn’t read the letter and described the protest letter as merely “exploratory.”

Had the majority of the City Council simply taken the time to read to the end of the 8 page letter they may have agreed with McKean’s view the city clearly was taking a position. Regardless, Loveland City Manager Bill Cahill is allowing Sam Betters and a few on council to make a mockery of the city and that is unfortunate.

Busy News Week In Loveland

May 6th, 2012

Loveland had a busy week;

1. Klen lawsuit going to trial on June 11 as city failed to reach a settlement with the plaintiffs in the matter.

2. Elaine Thorndike is now gone from CAMT after no other cities were willing to be “awarded” the ACE Project Loveland’s Betsey Hale and council worked so hard to “win.” CAMT even appears to be breaking-up and reorganizing under a new name.

3. City appeals Mirasol decision by HUD to the Secretary of HUD. Loveland Housing authority director Sam Betters, a political partisan, has told Loveland Seniors at Mirasol the law firm he engaged in Denver will over-turn an unfavorable decision by HUD using their political connections in the Obama Administration. Staff proceeds with plan while ignoring the council at large.

4. Most disturbing is the image of County Commissioner Steve Johnson’s naked bottom on FaceBook to impress his friends. Facing no opponent this November, Johnson feels more invincible than former Congressman Anthony Weiner.

Lastly, on May 1, five Councilors voted to have city staff prepare a moratorium on oil and gas exploration and drilling even though no such item was on their agenda. The temporary measure, to be voted on June 15, will go until the end of this year thus escaping the legal problem of it constituting a “taking” given the temporary nature of the action. Resident worried an amendment to the Millennium GDP may be a backdoor to approve oil and gas exploration. Instead, Council voted 8-1 to approve dozens of amendments to Centerra’s Millennium GDP that will allow heavy industrial next to schools and aparments without any public notice or review.

Any comments?

McWhinney Estate Least Valued Lot on Lake Loveland According to County

April 27th, 2012

McWhinney’s “Santa Barbara style estate” on Lake Loveland appears to be taxed less than all the other residential lots with direct access to Lake Loveland. see story

Valued at just below $4 per square foot, McWhinney’s beautifully landscaped custom lot on the east shore of Lake Loveland is valued by Larimer County’s Assessor at about half the value of most other properties on the lake. Boasting 8 bathrooms, a butler’s house, tennis courts, heated dog run and indoor lap pool the overall appraised value of just over $1 million appears to be only a fraction of its true market value.

LovelandPolitics reported in 2009 that a former McWhinney employee claimed to have knowledge the recorded sales price of the property, also just around $1 million, was not accurate. Listed at $4.5 million by the seller that same year (2009) seems to indicate there may by truth in the accusation.

We are not reporting any laws were broken only there appears to be a mystery surrounding the estate’s true market value that is recorded at only a fraction of what the impeccable property should be worth. Any better potential explanations that maybe we overlooked are welcome.

McWhinney Wants to End Public Review of Development

April 24th, 2012

Loveland’s Planning Commission approved an amendment to the “Millennium GDP” that governs development in Centerra. The amendment seeks to largely exclude any review or approval process for most commercial and industrial developments within Centerra. see story

The new owners of The Promenade Shops at Centerra are fighting the change they say will rob adjacent landowners of property rights and belies the plan’s “Good Neighbor” policy. Under pressure, Loveland’s Planning Commission buckled and passed the Amendment 9, some even later saying they regret the vote.

Loveland’s City Council will vote on the same Amendment that requires Council approval on May 1, 2012. McWhinney normally will not propose such a bold change unless they have already secured in private the necessary votes on council. Any guess who those votes will be?

Decorated Firefighter Challenges Need Of Mill Levy Increase

April 20th, 2012

Approximately 23,000 residents living just outside Loveland’s city limits (inside the Rural Fire District) are being asked to vote a mail-in ballot to increase their mill levy for fire protection by 40% (5.808 to 9.808) by 2017.

Retired firefighter Eric Blake believes the mill levy increase is the result of the City of Loveland pushing out capable volunteers to increase paid staff positions. read his commentary here.

RH Managing Editor Christine Kapperman Resigns

April 16th, 2012

Christine Kapperman, Managing Editor of the Loveland Reporter-Herald, is said to be resigning her position to take a new job outside the news business. see story

Kapperman followed former Managing Editor Ken Amundson who was laid-off one year ago following the acquisition of the publication by the owners of the Denver Post. Kapperman maintained the newspaper’s status quo of avoiding more controversial news stories that may offend advertisers while sticking mostly to stories brought to the journal by city officials and local businesses.

Evidence of this is a recent email to Loveland’s city attorney by the head of Loveland’s Housing Authority, Sam Betters about planting a positive story about the Mirasol debacle in the Reporter-Herald. Betters explains that he decided to “acknowledge” a determination by HUD that rents at Mirasol are above the limits agreed to when the city accepted the federal grants used to construct the project. Betters even seeks permission from the city attorney to include the content he is planning for the story by what he will say in the interview. Even more disturbing is his reference to LovelandPolitics coverage of the issue indicating it caused two seniors to question him about their potential “windfall.” In other words, the RH story was planted as a rebuttal to the facts being reported by LovelandPolitics.

Had the newspaper not printed the story just as he described it you could dismiss Betters’ email as pretending to have more control than he really does. Instead, one must acknowledge the evidence of Betters’ email shows that some news stories about city matters are being planned in city hall and not the newsroom of the Loveland Reporter-Herald.

We have many times defended our local newspaper against those who want to use this forum as a platform to bash the Loveland Reporter-Herald. However, the recent email and subsequent story bent on refuting or at least obfuscating the facts surrounding Mirasol as reported here are shameful. The Loveland Reporter-Herald needs to decide on whether or not certain news will be reported and not senior staff in city hall.

Christine Kapperman – good riddance. Now can someone write a letter to Al Manzi and Dean Singleton explaining that the public will respond better if the newspaper decides what it will do the reporting instead of the subject of the story?

Loveland Appeal To HUD Contains False Information

April 12th, 2012

Loveland City Attorney John Duval, in coordination with Council and Sam Betters of Loveland’s Housing Authority, sent false information to HUD last week when appealing the federal agency’s determination Loveland’s Mirasol Senior Housing Project is charging rent in excess of what the grants used to construct the facility will allow. see story

Key to the city’s primary argument is the Community Dues are voluntary and therefore not calculated as part of each unit’s “gross rent.” LovelandPolitics obtained leases from Mirasol residents which demonstrate this information is patently false. In the Section titled “Rent” the base rent and Community Dues are both listed as part of the “Gross Rent” which is stated at the beginning of the paragraph as the total RENT for the year.

In addition, Betters has now influenced the city to use his tried and true method of threatening people dependent on subsidized housing with calamitous consequences if he is forced to repay the illegally collected rents. Even the Loveland Reporter-Herald is mimicking as fact Betters’ claim that repaying the excess rents will have dire consequences on Mirasol. All this while Betters refuses to open the books and show what he and other private investors may have earned on the project to date.

Especially absurd is the self-contradictory argument that the Community Dues are “voluntary” while arguing at the same time Mirasol cannot afford to follow HUD’s direction to make the dues voluntary since it needs the funds to support the Mirasol Event Center, shuttle van and other amenities. The Loveland Reporter-Herald is now adding to the absurdity by reporting all the seniors except maybe only a couple support paying the Community Dues!

Are they saying the finances are so fragile the loss of one or maybe two resident Dues ($113 each) will bankrupt Mirasol or is their argument that residents really don’t support paying the dues and will not if really given the choice?

To add insult to injury, Mirasol is now illegally demanding any resident who doesn’t want to pay the “voluntary” dues from now forward will need to sign an “opt-out” agreement. The agreement (see it linked to our story) creates a kind of mini-apartheid against any Mirasol resident who chooses not to pay the “voluntary” community dues. They are banned from the Events Center and other common areas while Loveland service clubs like the Kiwanis (whose members are not all residents of Mirasol) meet in the Events Center for free! In other words, Mirasol residents who opt-out will have no access while non-residents can continue using the facilities?

Sam Betters cannot argue financial hardship for the secret investors in Mirasol unless he is willing to open their books for public inspection. Until the residents know how much profit the owners are really taking from the property it is unreasonable to ask the residents or city taxpayers to bail-out Mirasol’s poor decision to raise rents beyond the legal limit using “Community Dues” as their cover.