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| 402 Property Purchased By City In 2007 Campaign Issue in 2011 - As Sewers Cross |
Loveland - October 24, 2011
In late 2007, Loveland’s City Council was secretly planning to purchase just under 100 acres south of Highway 402
located at 1452 South County Road 7. The purchase and later annexation of the farmland had been in planning for
years by city staff. This was primarily the same City Council that only three years earlier approved the controversial
Master Financing Agreement “MFA” with the McWhinneys
In 2006 Loveland annexed some 2.5 acres two miles west of Interstate 25 on the northwest corner of Highway 402 and
Larimer County Road 9E. This small piece of land (referred to as a flagpole) allowed Loveland to reach Highway 402
west of I-25 and make the required claim of "continuity" with the nearly 100 acres for sale across the street. (see
Northern Colorado Business Journal article from 2008)
An election was just around the corner by late 2007 and scheduled for early November when three candidates for City
Council, Cecil Gutierrez, Kent Solt and Don Archuleta were running on platforms critical of the McWhinney deal while
seeking to focus city attention on downtown redevelopment and into what Gutierrez called, “primary jobs in the corps of
the city instead of more retail along I-25.”
During much of the 2007 council campaign, Archuleta was hospitalized for an emergency hip replacement allowing Larry
Heckel to slip back into another four year term with little trouble. However, both Solt and Gutierrez were elected in
November creating if not the majority they wanted but certainly a new vocal opposition on council.
Meanwhile, former City Manager Don Williams and his staff aggressively badgered various property owners south of
Loveland including a farmer named Paul Ehrlich (who owned the near 100 acres on the southwest corner of I-25 and
Highway 402) to annex into the City of Loveland but with little success during the summer of 2007. Williams argued, in
private, that the only way the city could annex Ehrlich’s 98 acres along the 402 would be to buy it outright form the
hostile owner who already had it up for sale.
Williams worried that the trio of new and well organized candidates, Archuleta, Gutierrez and Solt could swing the
majority in council against his quietly planned acquisition strategy that involved borrowing money from various other city
funds and paying it back out of the general fund over ten years. Especially disconcerting for some on city staff was that
the repayment plan would ramp-up in later years as only interest would be paid during the first five.
What made acquisition of the Ehrlich’s 98 acres especially rewarding for Williams was not its proximity to Johnstown
and distance from any significant Loveland city boundary but the fact it actually lies south of Johnstown property on the
opposite side of the west to east travelling 402 before reaching I-25. This would make development of commercial
properties north of the 98 acres already in areas annexed by Johnstown especially difficult given the potential need for
utility easements crossing Loveland boundaries. Williams seriously described his strategy in a senior level staff meeting as
the Nazi “Pincer” movement against Johnsontown by using McWhinney in the east and Ehrlich’s property in the west to
choke off any future development along I-25 that could compete with Loveland. One staff member joked to
Lovelandpolitics at the time, "Don's been watching too much TV lately because he thinks he is a general in a
war with Johnstown."
Public works worried the Ehrlich property was at an elevation lower than the city's waste water treatment plant.
Connecting a sewer system uphill to Loveland would require some estimated $7 million since it would require a pumping
stations to elevate the waste while sending it north to Loveland around Johnstown annexed property. Then Councilman
Walt Skowron was poking around with questions trying to understand the haste the city manager had in closing a deal
Skowron didn't think was in the city's interests. The same estimate and concerns were raised when Loveland bought the
water rights in exchange for another annexation agreement with the Olson farm near Johnstown.
Solt broke ranks with Gutierrez and supported the majority for the Olson Farm annexation in 2008. Again the sewer
feasibility issue was raised as Willaims was said to be reducing the sewer costs artificially. Posting on LovelandPolitics'
blog, one city insider argued, "it would well be double or tripple that, there are not plans and technically its
suspect because they have to pump all of 402 to the interchange and then pump it all back, which is a huge
distance and contrary to good practice. This whole thing is a crap shoot and a bad fiscal deal for the City, only
being done to feed the Pielin and Williams egos." (Note: to the interchange and back refers to going around the
Johnstown parcel across the street to the north)
Leaving little to chance, Williams negotiated a purchase contract with Paul Ehrlich even before the council was technically
briefed in public of staff’s intention to buy the property. In vintage Williams fashion he cleverly excluded public comment
from the first reading planned for October 17, 2007 and boxed-in any potential dissenters like Councilman Walt
Skowron by bringing only one solution to council – buy the property outright or risk allowing annexation into Johnstown.
Williams even made sure the item would not be discussed until the end of a long council meeting when few if any in the
public would be paying attention.
When news of the property purchase found its way to the public’s notice, Williams pulled the item from the October 17,
agenda rescheduled it again for the November 6, 2007 – election night council meeting. Shortly after the polls closed the
council passed the item under strong protests from Councilman Walt Skowron who was publicly berated by his
colleague Larry Heckel.(see video on news story from 2007). Of course, Williams argued the council had no choice
since the option to purchase the property (at the full asking price) expired the same night as the election in the contract
negotiated by Williams. One commercial broker complained the city refuses to advertise the real "asking price" now in
fear of public reaction to the much lower price. Curiously, every current Loveland City Council candidate answered no
to a Loveland Reporter Herald question as to whether they will vote to sell the 402 property at a significant loss.
Campaign Issue in 2011
Now four years later the property is still for sale except this time the City of Loveland is the seller and it is a campaign
issue once again. Unlike four years ago there is no contract to sell the property as the city comes close to concluding the
election but once again the property is generating sufficient controversies.
One contender to replace Councilman Heckel is his former colleague and friend Dave Clark who held the other council
seat representing Ward IV until giving it up two years ago to run for Mayor. Now Clark is the subject of questions
regarding a loan to a company he partly owns, Candlelight Properties, LLC, which owns and operates the Candlelight
Dinner Playhouse in Johnstown. Paul Ehrlich's Trust loaned $200,000 to the company in 2009 a little over a year after
selling the 402 property to the City of Loveland. Speculation is that previously a traditional farmer, Paul Ehrlich, may
have reciprocated Clark’s support in the property purchase with a loan using some of the proceeds from his deal with the
city to help Dave Clark.
Another owner of Candlelight is candidate Chauncey Taylor looking to replace Donna Rice representing Loveland’s
Ward 1 on city council. Among the complaints being quietly circulated is that both Taylor and Clark failed to disclose
the loan on their campaign finance disclosure forms.
Clark was on the city council in 2007 and voted in favor of the controversial land purchase while Taylor is only running
for the first time for council this year. Therefore, Clark appears to be the target of the complaints and to a lesser degree
Taylor for not disclosing the loan in financial disclosure statements.
Mysterious Letter Writer
Someone using an assumed name has contacted LovelandPolitics, the Coloradoan, Denver Post and Loveland Reporter
Herald seeking stories critical of Clark for the loan. Below is an excerpt of the correspondence LovelandPolitics
received from someone pretending to be “Jenn Lamont.” The complete email can be seen in the column on the right.
“Dave Clark was on the Loveland City Council that voted to purchase property from Paul Ehrlich for the
amount of $6.5 million.
Dave voted for that purchase. The City of Loveland still owns the property and is unsuccessfully trying to
sell it. Dave Clark left City Council in early 2009, prior to receiving the loan. Neither Dave Clark nor
Chauncey Taylor have claimed this creditor on their applications for City Council candidacy. It is possible
the loan is paid, so within the letter of the law, they have complied with the candidacy submission
requirements. It is equally possible the loan is not paid off.
Either Dave Clark knew Paul Ehrlich very well prior to the $6.5 million purchase (in which case he should
have recused himself) or Mr. Ehrlich has found a way to express his thanks for Dave's support. This loan was
subordinate to the original deed of Trust, making it essentially an unsecured loan.”
LovelandPolitics has followed-up with council candidate Dave Clark who acknowledged the loan is still outstanding but
denied any connection between his vote to purchase Ehrlich’s property in 2007 and the loan Candlelight received in
2009. In addition, Clark volunteered the fact he had no relationship with Ehrlich prior to the city purchasing Ehrlich's
farmland in 2007. On the issue of disclosure, Clark explained the loan was to his business and not him personally so was
not something he believed needed to be disclosed. Clark also stated he would happily disclose the loan if he learned it
was required.
Clark has also posted an explanation on his campaign website explaining the 2007 purchase of the 98 acres from
Ehrlich. A link to every candidate website is available in the right column of our home page by clicking on the candidate's
name.
Clark has responded to the accusations by using a similar argument regarding the importance of purchasing the Ehrlich
property. Below is what Clark has posted on his website;
"Land purchase at 402 / I25 - The claim is the city is participating in land speculation causing city reserve
funds to be “dangerously thin”. The FACT is this purchase was NOT a short term land speculation venture.
It was part of a long range plan to protect and preserve our borders and our future corridors into Loveland.
Funding for the purchase came from city funds designated for projects far in the future. This purchase had
NO impact on current reserves except for a small amount used from the council reserve funds."
Motive For The Purchase
The city resolution approving the purchase of the 402 property stated the only way to annex the property into Loveland
was to buy it. This references a lack of cooperation Williams reported to council previously regarding Ehrlich's refusal to
allow any of his properties to be annexed into Loveland city limits. In 2007 the resolution justifying the land purchase as
an official city action also stated,
“State Highway 402 has a significant impact on the image, appearance, and future economic vitality of the
City….vital southern gateway into the City”
Ironically, the same council didn't consider the south Lincoln area of 287 an important gateway into the city by voting to
delay the annexation of dilapidated properties like a storage area that looks like an auto salvage yard occupying not only
street front on Lincoln but also visible north side of the city's bike trail east of Lincoln. Another property owner was
allowed to continue a non-permitted use of storing RV's for another decade in that corridor inside city limits by the same
council. McWhinney also developed an auto parts store on the last lot where the two directions of Highway 287 join at
the south end of the city. Some members of the City Council complained quietly that support for such developments
seemed inconsistent with the concern expressed over the 402 property and even complained LovelandPolitics failed to
provide proper coverage of these incidents.
Some have speculated that Williams' "Pinzer" action against Johnstown was to assist McWhinney in monopolizing any
land along the I-25 that otherwise could have eventually competed against Centerra for retail shoppers. City planning
staff have more lately argued the development of 402 must be like Ft. Collins' Harmony corridor.
Whether Ehrlich's transition from farmer to venture capitalist and investor into Clark and Taylor's business was the result
of some insider dealing or just coincidence will likely be debated for years to come. Equally interesting speculation is
whether "Jenn Lamont" is really Clark's campaign opponent Ralph Trenary trying to hide his true identity by sending
accusations about his opponent to the press under an assumed name. Normally, people are willing to reveal themselves
to the press so long as their identity remains background for the story and is never published.
In late 2007, Loveland’s City Council was secretly planning to purchase just under 100 acres south of Highway 402
located at 1452 South County Road 7. The purchase and later annexation of the farmland had been in planning for
years by city staff. This was primarily the same City Council that only three years earlier approved the controversial
Master Financing Agreement “MFA” with the McWhinneys
In 2006 Loveland annexed some 2.5 acres two miles west of Interstate 25 on the northwest corner of Highway 402 and
Larimer County Road 9E. This small piece of land (referred to as a flagpole) allowed Loveland to reach Highway 402
west of I-25 and make the required claim of "continuity" with the nearly 100 acres for sale across the street. (see
Northern Colorado Business Journal article from 2008)
An election was just around the corner by late 2007 and scheduled for early November when three candidates for City
Council, Cecil Gutierrez, Kent Solt and Don Archuleta were running on platforms critical of the McWhinney deal while
seeking to focus city attention on downtown redevelopment and into what Gutierrez called, “primary jobs in the corps of
the city instead of more retail along I-25.”
During much of the 2007 council campaign, Archuleta was hospitalized for an emergency hip replacement allowing Larry
Heckel to slip back into another four year term with little trouble. However, both Solt and Gutierrez were elected in
November creating if not the majority they wanted but certainly a new vocal opposition on council.
Meanwhile, former City Manager Don Williams and his staff aggressively badgered various property owners south of
Loveland including a farmer named Paul Ehrlich (who owned the near 100 acres on the southwest corner of I-25 and
Highway 402) to annex into the City of Loveland but with little success during the summer of 2007. Williams argued, in
private, that the only way the city could annex Ehrlich’s 98 acres along the 402 would be to buy it outright form the
hostile owner who already had it up for sale.
Williams worried that the trio of new and well organized candidates, Archuleta, Gutierrez and Solt could swing the
majority in council against his quietly planned acquisition strategy that involved borrowing money from various other city
funds and paying it back out of the general fund over ten years. Especially disconcerting for some on city staff was that
the repayment plan would ramp-up in later years as only interest would be paid during the first five.
What made acquisition of the Ehrlich’s 98 acres especially rewarding for Williams was not its proximity to Johnstown
and distance from any significant Loveland city boundary but the fact it actually lies south of Johnstown property on the
opposite side of the west to east travelling 402 before reaching I-25. This would make development of commercial
properties north of the 98 acres already in areas annexed by Johnstown especially difficult given the potential need for
utility easements crossing Loveland boundaries. Williams seriously described his strategy in a senior level staff meeting as
the Nazi “Pincer” movement against Johnsontown by using McWhinney in the east and Ehrlich’s property in the west to
choke off any future development along I-25 that could compete with Loveland. One staff member joked to
Lovelandpolitics at the time, "Don's been watching too much TV lately because he thinks he is a general in a
war with Johnstown."
Public works worried the Ehrlich property was at an elevation lower than the city's waste water treatment plant.
Connecting a sewer system uphill to Loveland would require some estimated $7 million since it would require a pumping
stations to elevate the waste while sending it north to Loveland around Johnstown annexed property. Then Councilman
Walt Skowron was poking around with questions trying to understand the haste the city manager had in closing a deal
Skowron didn't think was in the city's interests. The same estimate and concerns were raised when Loveland bought the
water rights in exchange for another annexation agreement with the Olson farm near Johnstown.
Solt broke ranks with Gutierrez and supported the majority for the Olson Farm annexation in 2008. Again the sewer
feasibility issue was raised as Willaims was said to be reducing the sewer costs artificially. Posting on LovelandPolitics'
blog, one city insider argued, "it would well be double or tripple that, there are not plans and technically its
suspect because they have to pump all of 402 to the interchange and then pump it all back, which is a huge
distance and contrary to good practice. This whole thing is a crap shoot and a bad fiscal deal for the City, only
being done to feed the Pielin and Williams egos." (Note: to the interchange and back refers to going around the
Johnstown parcel across the street to the north)
Leaving little to chance, Williams negotiated a purchase contract with Paul Ehrlich even before the council was technically
briefed in public of staff’s intention to buy the property. In vintage Williams fashion he cleverly excluded public comment
from the first reading planned for October 17, 2007 and boxed-in any potential dissenters like Councilman Walt
Skowron by bringing only one solution to council – buy the property outright or risk allowing annexation into Johnstown.
Williams even made sure the item would not be discussed until the end of a long council meeting when few if any in the
public would be paying attention.
When news of the property purchase found its way to the public’s notice, Williams pulled the item from the October 17,
agenda rescheduled it again for the November 6, 2007 – election night council meeting. Shortly after the polls closed the
council passed the item under strong protests from Councilman Walt Skowron who was publicly berated by his
colleague Larry Heckel.(see video on news story from 2007). Of course, Williams argued the council had no choice
since the option to purchase the property (at the full asking price) expired the same night as the election in the contract
negotiated by Williams. One commercial broker complained the city refuses to advertise the real "asking price" now in
fear of public reaction to the much lower price. Curiously, every current Loveland City Council candidate answered no
to a Loveland Reporter Herald question as to whether they will vote to sell the 402 property at a significant loss.
Campaign Issue in 2011
Now four years later the property is still for sale except this time the City of Loveland is the seller and it is a campaign
issue once again. Unlike four years ago there is no contract to sell the property as the city comes close to concluding the
election but once again the property is generating sufficient controversies.
One contender to replace Councilman Heckel is his former colleague and friend Dave Clark who held the other council
seat representing Ward IV until giving it up two years ago to run for Mayor. Now Clark is the subject of questions
regarding a loan to a company he partly owns, Candlelight Properties, LLC, which owns and operates the Candlelight
Dinner Playhouse in Johnstown. Paul Ehrlich's Trust loaned $200,000 to the company in 2009 a little over a year after
selling the 402 property to the City of Loveland. Speculation is that previously a traditional farmer, Paul Ehrlich, may
have reciprocated Clark’s support in the property purchase with a loan using some of the proceeds from his deal with the
city to help Dave Clark.
Another owner of Candlelight is candidate Chauncey Taylor looking to replace Donna Rice representing Loveland’s
Ward 1 on city council. Among the complaints being quietly circulated is that both Taylor and Clark failed to disclose
the loan on their campaign finance disclosure forms.
Clark was on the city council in 2007 and voted in favor of the controversial land purchase while Taylor is only running
for the first time for council this year. Therefore, Clark appears to be the target of the complaints and to a lesser degree
Taylor for not disclosing the loan in financial disclosure statements.
Mysterious Letter Writer
Someone using an assumed name has contacted LovelandPolitics, the Coloradoan, Denver Post and Loveland Reporter
Herald seeking stories critical of Clark for the loan. Below is an excerpt of the correspondence LovelandPolitics
received from someone pretending to be “Jenn Lamont.” The complete email can be seen in the column on the right.
“Dave Clark was on the Loveland City Council that voted to purchase property from Paul Ehrlich for the
amount of $6.5 million.
Dave voted for that purchase. The City of Loveland still owns the property and is unsuccessfully trying to
sell it. Dave Clark left City Council in early 2009, prior to receiving the loan. Neither Dave Clark nor
Chauncey Taylor have claimed this creditor on their applications for City Council candidacy. It is possible
the loan is paid, so within the letter of the law, they have complied with the candidacy submission
requirements. It is equally possible the loan is not paid off.
Either Dave Clark knew Paul Ehrlich very well prior to the $6.5 million purchase (in which case he should
have recused himself) or Mr. Ehrlich has found a way to express his thanks for Dave's support. This loan was
subordinate to the original deed of Trust, making it essentially an unsecured loan.”
LovelandPolitics has followed-up with council candidate Dave Clark who acknowledged the loan is still outstanding but
denied any connection between his vote to purchase Ehrlich’s property in 2007 and the loan Candlelight received in
2009. In addition, Clark volunteered the fact he had no relationship with Ehrlich prior to the city purchasing Ehrlich's
farmland in 2007. On the issue of disclosure, Clark explained the loan was to his business and not him personally so was
not something he believed needed to be disclosed. Clark also stated he would happily disclose the loan if he learned it
was required.
Clark has also posted an explanation on his campaign website explaining the 2007 purchase of the 98 acres from
Ehrlich. A link to every candidate website is available in the right column of our home page by clicking on the candidate's
name.
Clark has responded to the accusations by using a similar argument regarding the importance of purchasing the Ehrlich
property. Below is what Clark has posted on his website;
"Land purchase at 402 / I25 - The claim is the city is participating in land speculation causing city reserve
funds to be “dangerously thin”. The FACT is this purchase was NOT a short term land speculation venture.
It was part of a long range plan to protect and preserve our borders and our future corridors into Loveland.
Funding for the purchase came from city funds designated for projects far in the future. This purchase had
NO impact on current reserves except for a small amount used from the council reserve funds."
Motive For The Purchase
The city resolution approving the purchase of the 402 property stated the only way to annex the property into Loveland
was to buy it. This references a lack of cooperation Williams reported to council previously regarding Ehrlich's refusal to
allow any of his properties to be annexed into Loveland city limits. In 2007 the resolution justifying the land purchase as
an official city action also stated,
“State Highway 402 has a significant impact on the image, appearance, and future economic vitality of the
City….vital southern gateway into the City”
Ironically, the same council didn't consider the south Lincoln area of 287 an important gateway into the city by voting to
delay the annexation of dilapidated properties like a storage area that looks like an auto salvage yard occupying not only
street front on Lincoln but also visible north side of the city's bike trail east of Lincoln. Another property owner was
allowed to continue a non-permitted use of storing RV's for another decade in that corridor inside city limits by the same
council. McWhinney also developed an auto parts store on the last lot where the two directions of Highway 287 join at
the south end of the city. Some members of the City Council complained quietly that support for such developments
seemed inconsistent with the concern expressed over the 402 property and even complained LovelandPolitics failed to
provide proper coverage of these incidents.
Some have speculated that Williams' "Pinzer" action against Johnstown was to assist McWhinney in monopolizing any
land along the I-25 that otherwise could have eventually competed against Centerra for retail shoppers. City planning
staff have more lately argued the development of 402 must be like Ft. Collins' Harmony corridor.
Whether Ehrlich's transition from farmer to venture capitalist and investor into Clark and Taylor's business was the result
of some insider dealing or just coincidence will likely be debated for years to come. Equally interesting speculation is
whether "Jenn Lamont" is really Clark's campaign opponent Ralph Trenary trying to hide his true identity by sending
accusations about his opponent to the press under an assumed name. Normally, people are willing to reveal themselves
to the press so long as their identity remains background for the story and is never published.
| From: Jenn Lamont <jenn1990_ftc@yahoo.com> To: "admin@lovelandpolitics.com" ________________________________________ Sep 2011 RE: Loveland City Council Election Scandal In an email that follows find two documents. You may obtain your own copies from the Larimer County Clerk and Recorder's office to authenticate. The first document "Statement of Authority" shows Dave Clark and Chauncey Taylor as Manager and Partner in Candlelight Properties, LLC. The LLC documents on file with the State show Dave Clark as an owner. The second document "Deed of Trust" shows a loan was received by Candlelight Properties, LLC on Sep 29, 2009 in the amount of $200,000. The loan was from the Paul Ehrlich Revocable Trust. Dave Clark was on the Loveland City Council that voted to purchase property from Paul Ehrlich for the amount of $6.5 million. Dave voted for that purchase. The City of Loveland still owns the property and is unsuccessfully trying to sell it. Dave Clark left City Council in early 2009, prior to receiving the loan. Neither Dave Clark nor Chauncey Taylor have claimed this creditor on their applications for City Council candidacy. It is possible the loan is paid, so within the letter of the law, they have complied with the candidacy submission requirements. It is equally possible the loan is not paid off. Either Dave Clark knew Paul Ehrlich very well prior to the $6.5 million purchase (in which case he should have recused himself) or Mr. Ehrlich has found a way to express his thanks for Dave's support. This loan was subordinate to the original deed of Trust, making it essentially an unsecured loan. I am a fiscal conservative, and I know these two appear to be some of the strongest candidates from that point of view. But this looks very bad, and will be an interesting test for LovelandPolitics. Also, I mailed copies of this to Gutierrez and Trenary before the "debate". The fact they didn't even mention it shows how little debate is going on, and how much they possibly have to cover. This was found on Larimer County Public Records, searching for "candlelight" |
