|Clark Reports Illegal Campaign Contribution
Council candidate Teri Volk may be in similar trouble
Loveland - Oct. 15, 2009
Loveland Mayoral candidate Dave Clark accepted an illegal campaign contribution as reported in his campaign finance reports
delivered to Loveland’s City Clerk October 13, 2009. Council candidate Teri Volk may also be in violation of the city’s
campaign finance laws due to information reported in her campaign finance reports.
A number of companies are listed on the contributions list for both candidates. According to the Loveland City Charter
Section 17.5 (e) states:
(e) Prohibited contributors. No candidate committee or political committee shall knowingly accept contributions
from any person who is not a citizen of the United States, or from a foreign government, corporation, labor union,
or political party.
Midtown Development, listed as a Clark contributor, is identified as a corporation with the Colorado Secretary of State.
Another Clark contributor, Thompson Valley Management LLC, is also listed as a contributor and is listed as the registered
agent of Midtown Development.
All three entities along with a fourth Clark contributor, North Madison properties, share the business address of 1043 Eagle
Drive in Loveland. It appears that former State House Legislator Don Marostica or his business partner is attempting an illegal
end-run around Loveland’s campaign contribution limits. Marostica is an owner of Loveland Commercial which appears to
also be the owner and operator of the other entities listed above according to information gleaned from the Colorado Secretary
of State records.
Two years ago Loveland voters passed Measure 2C in an attempt to limit campaign contributions to $100 per person while
also prohibiting corporate campaign contributions to limit this type of loophole. Clark has apparently violated that law by
accepting a contribution from a corporation, Loveland Midtown Development, and by accepting multiple contributions from
related entities in an apparent attempt to hide one or two people behind the multiple contributions.
LovelandPolitics contacted Loveland City Attorney John Duval this morning for clarification on the prohibition of contributions
by corporations. He said the city charter does prohibit corporations but not LLC’s (limited liability partnerships) from
contributing to local campaigns.
A candidate may accept a contribution from a partnership that is not a corporation so long as the owners do not exceed the
aggregate contribution limit of $100 per person.
Ironically, both McWhinney and Loveland Commercial were large contributors to previous Loveland city council campaigns
thus making it difficult for regular citizens with modest resources raised in the community to run for city council or mayor. Now
the two potential violators of that measure appear to be both Loveland Commercial and McWhinney.
Whether council candidate Teri Volk is in clear violation of the charter will depend on whether the Hampton Inn, Fairfield Inn
& Suites and Residence Inn contributions came from a corporation or limited partnership. The entities reported are clearly
corporations but whether there exists a partnership of another or similar name is unclear as the specific names reported by both
Volk and Clark cannot be found listed (by the corporate name than Loveland) as being registered with the Colorado Secretary
of State. Each company is registered in the state as a corporation.
The Loveland Reporter-Herald curiously failed to name the company Stonebridge McWhinney LLC by its full name when
reporting on contributions to the "For A Better Loveland" campaign to pass a new lodging tax in Loveland. The Loveland
Reporter-Herald somehow forgot to mention the name "McWhinney" in the company name.
It is likely McWhinney, as part owners of the local hotels giving money to Clark and Volk, is also trying to hide their influence
in the campaigns through different entities. Because there are no contribution limits for issues the company simply wrote one
large check to support the lodging tax campaign. However, both Clark and Volk received $100 from the specific hotels.
If a candidate receives one check from several contributors than each contributor must also sign the check and the candidate
should be tracking whether or not a single person has exceeded the contribution limits. That was at least the intent of Measure
If both Clark and Volk are found in violation by the City of Loveland they could face a fine or imprisonment according to the
“Any person who knowingly violates or fails to comply with any of the provision or Article 17 of the Loveland City
Charter commits a misdemeanor and is subject to a fine or imprisonment in accordance with ordinances adopted
by the City Council pursuant to LCC 4-14."
Given Clark's current status on the city council it is unlikely any penalties for violating the charter will be imposed by the city
attorney or directed by council.
According to the organizers of Measure 2C their intent was to prohibit any contribution not from an actiual person. Therefore,
only single person LLCs where the owner is clearly identified could contribute to a political campaign. Instead, the Loveland
City Attorney is taking a more strict interpretation of the prohibition of "corporations" to mean entities that are incorporated
and not any company that may be differently organized.
Regardless of the interpretation, any person is still prohibited from contributing more than $100 to any one candidate. If non-
entities can contribute, it will be more difficult to identify if a single person exceeds the contribution limits by contributing
through several different entities.
Candidate for mayor
Marostica related $100 each-
Loveland Commercial LLC 1043 Eagle Dr.
Loveland Midtown Development 1043 Eagle Dr.
Thompson Valley Management 1043 Eagle Dr.
North Madison Properties 1043 Eagle Dr.
Dave Clark and Teri Volk
Hampton Inn - Loveland $100
Fairfield inn & Suites $100
Residence Inn - Loveland $100