Only four short years ago, in 2007, Mayor Cecil Gutierrez and his colleague Kent Solt were elected to Loveland’s City Council on the same night their predecessors voted to purchase 98 acres of vacant land on the southwest corner of I-25 and 402.
Gutierrez, a longtime Democrat, received support and applause from members of a Republican breakfast club meeting in Loveland when he challenged Dave Clark, his opponent for the Mayor’s seat, two years later for having voted to spend $6.5 million for the property. Later Clark’s business received a $200,000 loan from the owner of that property, Paul Ehrlich, that some people are trying to make into a bigger issue in this campaign (see complete story)
Even the Loveland Reporter Herald asked every candidate, “Would you sell the Colorado 402 property, even if it were at an enormous loss?” Every council candidate on the ballot answered, “No.”
We believe they are all wrong. The City of Loveland already suffered the “enormous loss” the night they purchased the property. It appears candidates are confusing the difference between what is called an “actual loss” and when they actually “realize” the loss for accounting purposes. There is still lots of capital on the sidelines in this bad economy that will move to capture a good deal. Smart business people with capital are always preferable to highly leveraged developers looking for city taxpayer hand-outs.
Clark has argued the people who call the 402 purchase “short term land speculation” are wrong because he voted to buy it for the long-term interests of the city to force annexation into Loveland. We believe the council can benefit from the annexation by simply subdividing the property and auctioning the parcels (through a reputable auctioneer) to the highest bidders. That way the city’s loss (or developer’s subsidy) comes in the form of a low cost for the property acquisition so free market competition determines who wins instead of Betsy Hale or the council or unfunded outside groups like CAMT.
Don’t laugh, CAMT has actually inquired with the city about the 402 property and whether it is also available for CAMT participation/ownership just like the Agilent Campus. Fortunately, the city responded “no.”
Once sold, the parcels can develop according to the city’s zoning code to the best and highest possible use for each. Once developed, they start paying property taxes to help our cash strapped county and school district as both depend on the property taxes Centerra isn’t paying. No sales tax incentives from the city (like Centerra gets), no urban renewal schemes or other tax advantages (also what Centerra got) that poach businesses out of other parts of Loveland to create more blight.
What a future we could have? ‘Smart growth’ paying its way from the very start. Governments actually getting the revenue they need to provide critical services because revenues grow commensurate with the addition of new businesses and residents. Isn’t that really what “pro-growth” used to be all about?
