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Council Approves An Additional $43,850,000 in Unrated Debt for Centerra - Going to 2048

Last November, McWhinney appeared before Loveland’s City Council with some urgency to request authorization for an additional
$43,850,000 of public debt for the Centerra metro districts.  In 2018, the Centerra Metro Districts were facing growing debt payments on
their nearly $200 million of unpaid public debt and rumored to be out of cash thus unable to make their year-end December payment.

Apparently desperate and seeking to avoid public debate, McWhinney’s request for even more debt (
to assist in paying current debt
obligations
) was scheduled as the last agenda item of a long meeting for November 5, election night, when people’s attention would be
focused on the national, state and local election results instead of a ‘routine’ city council meeting.

As expected, McWhinney controlled Centerra Metro District’s request to take out another $43.8 million in additional public debt was
approved election night on an 8-1 vote with Loveland’s Mayor the sole dissenter.  McWhinney promised to use $5 million to improve
Boyd Lake Avenue North to their own properties while the other $35 million was largely not discussed but assumed to assist the cash
strapped metro district.  Contrary to their original 2004 agreement with the city, McWhinney was not required to complete any regional
transportation project (as defined in the original agreement) before or after burdening a large swath of real estate with additional public
debt.  

Loveland Councilman Donald Overcash pretended his same question he asks every time McWhinney appear before council; is the city
liable if Centerra goes belly-up and cannot repay this new debt.  Overcash wore a smug smile as the Centerra representative said
essentially no because the city’s 2004 Master Financing Agreement (MFA) absolved the City of Loveland of any liability for Centerra’s
metro district public debt.


Broken Promises and Overly Leveraged Metro District

A combination of rising interest rates, declining sales (Promenade Shops At Centerra lost 4% last year) and a terribly over leveraged
Metro District combined to create an untenable situation in late 2018 likely leading to the near-emergency debt request.

According to McWhinney attorney Allen D. Pogue, the new municipal bonds are “not rated” meaning they don’t even qualify for
Moody’s,
S&P or Fitch’s “junk bond” rating status of triple B to D (default) ratings.  Accordingly, the new public debt terms read something like the
infamous Payday Loan Services for borrowers with little to no credit.

According to documentation provided to council, the Centerra Metro Districts will now only pay interest (no principle) until 2032.  In
addition, the total amount owed can actually grow with compounding interest if a payment is missed meeting the definition of “forever
bonds” since compounding debt can have a snowball effect making repayment of the principle impossible without another infusion of
cash taken or borrowed from another source.  Even without the compounding interest, the total repayment with interest by 2048 will cost
city taxpayer's $111,366,028.

2004 Master Financing Agreement (MFA) Failed Promises

Early last year the McWhinney’s loudest supporter on Loveland’s City Council, Don Overcash, published a commentary in the Loveland
Reporter-Herald defending the 2004 MFA (signed while he was still a pharmacist in Chicagoland).

While Overcash defends the 2004 MFA, he has regularly voted with the majority to fundamentally alter the agreement to the benefit of
McWhinney by removing the very purpose of the agreement to fund regional transportation projects and generate sufficient sales taxes
to contribute in aggregate to the city's general fund.  As originally envisioned and negotiated, the City of Loveland would approve public
bonds for McWhinney’s Centerra Metro District only in phases as the public monies are spent on Regional Transportation Improvements
not only to improve properties owned by McWhinney.

As most Loveland commuters know well, the gridlock on Highway 34 is an ugly and daily reminder of the consequences of a city council
unable or unwilling to enforce the original terms of the 2004 Master Financing Agreement signed by McWhinney to divert $600 million in
taxes over 25 years; except now the debt can go on indefinitely while the promised regional transportation improvements like widening
Highway 34 over I-25 go unfunded.
Loveland, January 17, 2019

Local developer McWhinney has reserved time on the Loveland
City Council’s February 19, 2019 meeting agenda to present
what Mayor Jacki Marsh previously referred to as an
“informercial” for their development company.  

At less than a year until Loveland’s next municipal elections,
McWhinney’s allies on Loveland’s City Council are looking for
top cover from constituents who are questioning the unending
subsidies the city continues to bestow upon the McWhinney
family and the properties they acquire.  The late February
presentation will be the second in as many years by
McWhinney to provide a “progress report” to the city on their
Centerra Metro District.

You will see plenty of pre-meeting publicity in the Loveland
Reporter-Herald, city broadcasting mediums and individual
councilmember’s Facebook pages whose seats are up for re-
election at the end of this year.  Curiously, these same fonts of
‘public information’ were conspicuously quiet late last year
about a substantive request by McWhinney placed before the
city council.
McWhinney Apologist, Kathi Wright,
Running For Loveland Mayor

March 4, 2019

A rumor has been circulating in Loveland that Councilwoman Kathi Wright attempted to
dissuade Mayor Jacki Marsh last Thursday at her store, Rabbask Design on 4th Street, from
seeking re-election as Mayor of Loveland this November to another 2-year term.

LovelandPolitics called Mayor Jacki Marsh for comment to determine if the rumor is accurate.
According to Mayor Marsh, Kathi Wright did make an unscheduled visit and disclosure at her
shop last Thursday, and apparently told the sitting mayor "
Nobody thinks Councilman Don
Overcash can beat you for mayor this November, therefore I am going to be running
and wanted you to hear it from me first."
 

According to Marsh, the message was polite but intended to discourage her from seeking
re-election.  She was surprised by the announcement since announcing your candidacy this
early triggers a requirement to report campaign expenditures by registering with the city
clerk.  LovelandPolitics verified Wright has not yet filed the required paperwork to begin
reporting campaign expenditures.

Kathi Wright, a longtime popular director of the Boys & Girls Club in Loveland, was first
recruited to run for city council in Ward 2 to keep Jacki Marsh off the city council.  Marsh had
already announced she was running for city council in Ward 2 in 2017 and was expected to
run unopposed before Kathi later entered the race.  

Wright is an unabashed McWhinney booster who as recently as two weeks ago lectured her
colleagues and the community about the need to show the McWhinney brothers, who were
listening in the audience, more gratitude.  Wright used her time during the annual Centerra
presentation to the Loveland City Council, not to ask any questions of the developer
but
instead laud them with praise while claiming the community doesn't understand how much
they care about Loveland.

LovelandPolitics reported, prior to the 2017 municipal elections, that both Gail Snyder, a
Republican, and Kathi Wright, a Democrat, were likely recruited by special interests to stop
McWhinney critic Jacki Marsh from being elected to the Loveland City Council.  Troy
McWhinney friend and former Councilman Hugh McKean recruited Gail Snyder while current
Councilwoman Leah Johnson takes credit for assisting Wright's campaign, presumably on
McWhinney's behalf, to successfully run for Council from Ward 2 which encompasses the
west areas of Loveland and the historic downtown.

Marsh waited until the very last minute to submit a petition to run for mayor instead thus
surprising the only two candidates at the time, Councilman John Fogle and former
Councilman Larry Heckle.  Fogle later complained he split the vote with Heckle who shares
similar views.  Fogle's introduction by then Mayor Cecil Gutierrez around town as the future
mayor backfired when newcomer and outsider Jacki Marsh garnered 47% of the vote in a
three way race for mayor.

Following Marsh's entrance into the 2017 mayoral race, the McWhinney organization hosted
a fund-raiser at the club house at Centerra Lakes to raise money for mayoral candidate John
Fogle.  Despite the considerable financial support from McWhinney including many
contributions from their employees and supporters even in Southern California, Fogle's plus
$30,000 campaign failed to garner much above 30% of the vote while the winner, now Mayor
Jacki Marsh's campaign, raised only $4,000 from local residents and $8,000 contributed from
Marsh's own funds.

Fogle
consolidated his IT business of installing home theaters with his pawn shop now in his
commercial property on Highway 402
south of town.  Rumors are Fogle cannot gain support
from McWhinney to try another run for mayor given his poor performance in 2017 and
he
doesn't have the means to
self-fund another run for mayor.

Mayor Pro Tem Don Overcash, a Republican, is likely to still seek the seat making Kathi
Wright the spoiler Democrat against fellow Democrat Jacki Marsh.  The plan may not be as
clever as those planning the race believe.  Republican Dave Kaufman is among the
prominent Republicans who backed Democrat Jacki Marsh's run against Fogle and Heckle in
2017.  Local government seats are supposed to be non-partisan and Marsh's coalition of
both Democrats and Republicans during her run in 2017 appeared to overcome the cynicism
of local partisans.

Besides chastising Lovelander's for failing to honor the McWhinney family in the manner she
believes they deserve, Wright has been largely quiet on council only voting with the majority
on every issue without contributing to the discussion.  Little is known about Wright's views
regarding city issues as she is reticent to engage in any debate with colleagues and simply
repeats how much she would prefer if
"everyone can just get along."
Loveland Councilwoman Kathi Wright
apparently running for Mayor of Loveland
to make sure the community provides the
McWhinney family the gratitude she
believes they deserve
McWhinney brothers Chad (left) and Troy
(right) watch as Councilwoman Kathi
Wright thanks them for their contributions
to the community and apologizes for the
community during the February 19, 2019
City Council meeting.
Centerra's New 'Forever Bonds'