| LovelandPolitics.com |
| McWhinney: Insufficient Funds To Complete I-25/U.S. 34 Interim Improvements As Planned Make another attempt to divert funds away from transportation improvements |
Loveland - September 14, 2009
McWhinney has spent through most of the $112 million in public funds they raised through municipal bonds for Centerra’s
Metro Districts that Loveland taxpayers will need to repay. $12 million is now left from the 2008 bond issuance of $112
million and McWhinney cannot spend that remaining money without approval from Loveland's City Council because it was set-
aside to improve the I-25 and U.S. 34 interchange.
Attempts by McWhinney to access the remaining but restricted funds for purposes other than regional transportation
improvements were rebuffed earlier this year. The public reacted angrily to a proposal by McWhinney to divert part of the
$12 million into subsidies related to an office complex for Agrium’s move from Greeley to Centerra in Loveland.
Despite the public outcry and even s scathing editorial in the Loveland Reporter-Herald against previous attempts to divert the
$12 million set aside for the I-25/US 34, McWhinney did manage to sneak back to council and get $490,000 of the $12
million appropriated away from the project last July in an “emergency” agenda item with little notice or objection by the public.
The Crossroads Blvd. Improvements was presented as the emergency and revised estimates for the costs of both the
Crossroads and U.S. 34 interchanges with I-25 the justification for the account juggling. Arguing they had no other funds
available to fund their commitments on Crossroads, McWhinney persuaded Loveland’s council to release $490,000 of the
$12 million to the Crossroads project or put in jeopardy the federal matching stimulus funds of $3 million going towards
Crossroads.
The following is what city staff provided in writing to Loveland’s City Council on July 21, 2009 to lobby for the passage of the
emergency appropriation.
“The District and the City have determined, based on revised projections, that the anticipated
cost to construct the Interim I-25/US 34 Interchange Improvements is less than original projected
by at least $490,000.”
The council voted unanimously to take the “unneeded” $490,000 out of the project but are now being told something
different. Tuesday night’s agenda package from city staff reports for September 15, 2009 states,
“Total Costs for the Construction, Construction Management,
Inspection, Testing and Oversight (summarized in detail below) for the entire project exceed the
current available funds of $11,510,000”
Had Loveland’s council not allowed the “emergency” appropriation last July the funds to improve the I-25 and US 34
intersection as promised to the community would still be available. Had they not voted for the appropriation, according to
McWhinney, the $3 million in federal matching stimulus funds would have been lost as the metro district didn’t have the funs
required. McWhinney is now looking to be rewarded for the shortfall by asking for millions of dollars to be taken out of the
interim improvement account and made available for future subsidies of his new projects instead of going towards regional
transportation projects as originally planned.
IGA (Inter-Governmenttal Agreement) Between City and McWhinney's District In Jeopardy
As a remedy for the shortage of funds for completing the now long awaited improvements to the I-25/US 34 interchange,
McWhinney is proposing to do only the street improvements but not the bridge rail, signage or landscaping. McWhinney
funded landscaping, signage and other improvements to their own properties using tax dollars by defining such construction
costs as "public improvements." Now McWhinney is arguing from the other side of the fence by telling Loveland's Council
that landscaping, signage and the bridge railing are simply ascetics for the project but not necessarily something they agreed to
fund as "public improvements" in their original 2004 MFA (Master Financing Agreement) with the city.
The Centerra Metro District's obligation to the interim improvements to the intersection can be found in the guiding document
for the project that is also a legal amendment to the original MFA signed between the City of Loveland and McWhinney.
Below is the part of the IGA that describes the interim improvements to the I-25 and US 34 interchange,
“WHEREAS, pursuant to the Agreement, the District and the City, acting as the “Local Agency,”
are cooperating in the construction and maintenance of the interim improvements more
specifically known as Colorado Department of Transportation (“CDOT”) Project CC 0341-066
15401), which includes safety improvements to the interchange, architectural enhancements to the
bridge, and landscape enhancements; and…….”
In a staff memo presented to the Loveland City Council on June 3, 2008 the scope of work and purpose of the IGA clearly
described as the following;
"The first item is a request for authorization to enter into an Intergovernmental Agreement with
the Centerra Metropolitan District No. 1for the construction and maintenance of the proposed
Interim Safety Improvements, architectural enhancements to the bridge and landscape
enhancements to the existing I-25 / US 34 Interchange (“Project”)."
Don Williams, Loveland City Manager, is proposing a contract award restricted to only safety inprovements for just over $8
million that ignores the June 3, 2008 IGA, City RESOLUTION #R-149-2008 , previous direction and information provided
council and the original funding commitment made in the MFA of $12.5 million for the interim improvements for the I-25/US
34 interchange by 2010.
All of the guiding city staff descriptions, council resolution and signed IGA speak to the bridge and landscape enhancements as
part and parcel to the planned interim improvements to the interchange. That is also why the funding was above $12 million in
2004. Below is an assertion Williams made in a memorandum to council in their September 15, 2009 package trying to
segregate the landscaping as a later addition. Also below is the architects representation of the improvements as planned and
agreed between the city and McWhinney's Centerra Metro District #1.
"Previous agreements between the City of Loveland and the Centerra Metropolitan District No. 1
have established the requirements of funding the safety improvements. The addition of the
aesthetic improvements was proposed by Centerra as part of this process when the economy was
strong and has been carried forward through the project."
McWhinney has spent through most of the $112 million in public funds they raised through municipal bonds for Centerra’s
Metro Districts that Loveland taxpayers will need to repay. $12 million is now left from the 2008 bond issuance of $112
million and McWhinney cannot spend that remaining money without approval from Loveland's City Council because it was set-
aside to improve the I-25 and U.S. 34 interchange.
Attempts by McWhinney to access the remaining but restricted funds for purposes other than regional transportation
improvements were rebuffed earlier this year. The public reacted angrily to a proposal by McWhinney to divert part of the
$12 million into subsidies related to an office complex for Agrium’s move from Greeley to Centerra in Loveland.
Despite the public outcry and even s scathing editorial in the Loveland Reporter-Herald against previous attempts to divert the
$12 million set aside for the I-25/US 34, McWhinney did manage to sneak back to council and get $490,000 of the $12
million appropriated away from the project last July in an “emergency” agenda item with little notice or objection by the public.
The Crossroads Blvd. Improvements was presented as the emergency and revised estimates for the costs of both the
Crossroads and U.S. 34 interchanges with I-25 the justification for the account juggling. Arguing they had no other funds
available to fund their commitments on Crossroads, McWhinney persuaded Loveland’s council to release $490,000 of the
$12 million to the Crossroads project or put in jeopardy the federal matching stimulus funds of $3 million going towards
Crossroads.
The following is what city staff provided in writing to Loveland’s City Council on July 21, 2009 to lobby for the passage of the
emergency appropriation.
“The District and the City have determined, based on revised projections, that the anticipated
cost to construct the Interim I-25/US 34 Interchange Improvements is less than original projected
by at least $490,000.”
The council voted unanimously to take the “unneeded” $490,000 out of the project but are now being told something
different. Tuesday night’s agenda package from city staff reports for September 15, 2009 states,
“Total Costs for the Construction, Construction Management,
Inspection, Testing and Oversight (summarized in detail below) for the entire project exceed the
current available funds of $11,510,000”
Had Loveland’s council not allowed the “emergency” appropriation last July the funds to improve the I-25 and US 34
intersection as promised to the community would still be available. Had they not voted for the appropriation, according to
McWhinney, the $3 million in federal matching stimulus funds would have been lost as the metro district didn’t have the funs
required. McWhinney is now looking to be rewarded for the shortfall by asking for millions of dollars to be taken out of the
interim improvement account and made available for future subsidies of his new projects instead of going towards regional
transportation projects as originally planned.
IGA (Inter-Governmenttal Agreement) Between City and McWhinney's District In Jeopardy
As a remedy for the shortage of funds for completing the now long awaited improvements to the I-25/US 34 interchange,
McWhinney is proposing to do only the street improvements but not the bridge rail, signage or landscaping. McWhinney
funded landscaping, signage and other improvements to their own properties using tax dollars by defining such construction
costs as "public improvements." Now McWhinney is arguing from the other side of the fence by telling Loveland's Council
that landscaping, signage and the bridge railing are simply ascetics for the project but not necessarily something they agreed to
fund as "public improvements" in their original 2004 MFA (Master Financing Agreement) with the city.
The Centerra Metro District's obligation to the interim improvements to the intersection can be found in the guiding document
for the project that is also a legal amendment to the original MFA signed between the City of Loveland and McWhinney.
Below is the part of the IGA that describes the interim improvements to the I-25 and US 34 interchange,
“WHEREAS, pursuant to the Agreement, the District and the City, acting as the “Local Agency,”
are cooperating in the construction and maintenance of the interim improvements more
specifically known as Colorado Department of Transportation (“CDOT”) Project CC 0341-066
15401), which includes safety improvements to the interchange, architectural enhancements to the
bridge, and landscape enhancements; and…….”
In a staff memo presented to the Loveland City Council on June 3, 2008 the scope of work and purpose of the IGA clearly
described as the following;
"The first item is a request for authorization to enter into an Intergovernmental Agreement with
the Centerra Metropolitan District No. 1for the construction and maintenance of the proposed
Interim Safety Improvements, architectural enhancements to the bridge and landscape
enhancements to the existing I-25 / US 34 Interchange (“Project”)."
Don Williams, Loveland City Manager, is proposing a contract award restricted to only safety inprovements for just over $8
million that ignores the June 3, 2008 IGA, City RESOLUTION #R-149-2008 , previous direction and information provided
council and the original funding commitment made in the MFA of $12.5 million for the interim improvements for the I-25/US
34 interchange by 2010.
All of the guiding city staff descriptions, council resolution and signed IGA speak to the bridge and landscape enhancements as
part and parcel to the planned interim improvements to the interchange. That is also why the funding was above $12 million in
2004. Below is an assertion Williams made in a memorandum to council in their September 15, 2009 package trying to
segregate the landscaping as a later addition. Also below is the architects representation of the improvements as planned and
agreed between the city and McWhinney's Centerra Metro District #1.
"Previous agreements between the City of Loveland and the Centerra Metropolitan District No. 1
have established the requirements of funding the safety improvements. The addition of the
aesthetic improvements was proposed by Centerra as part of this process when the economy was
strong and has been carried forward through the project."
| June 3, 2008 Inter-Governmental Agreement (IGA) between City and McWhinney's Metro District on I-25/US 34 Interim Improvements WHEREAS, the District and the City, acting as the “Local Agency,” desire to partner in the construction and maintenance of the interim improvements more specifically known as Colorado Department of Transportation (“CDOT”) Project CC 0341-066 (15401), hereinafter referred to as the “Project” which includes safety improvements to the interchange, architectural enhancements to the bridge and landscape enhancements. WHEREAS, the safety improvements to the interchange, architectural enhancements to the bridge and the landscaping will collectively benefit all of the City of Loveland. NOW, THEREFORE, in consideration of the promises of the parties hereto and other good and valuable consideration, the receipt and adequacy of which are hereby acknowledged, it is agreed as follows: |
| What McWhinney Promised 1. Interim Improvements to I-25/US 34 by 2010 in the amount of $12.5 million 2. Final Improvement to the I-25/US 34 in the amount of $24 million |