|McWhinney's Centerra Seeking More Public Debt
Centerra asking council to extend public debt to 2040 to assist in refinancing
|Reported by LovelandPolitics
story titled 'Centerra Gamble' 11-2009
Is Centerra Metro District In Financial
Trouble Like Promenade Shops?
Centerra’s $112 million public bond debt must be
paid to the bond holders with adjustable interest
rates by 2029. The planned payments are not
constant but begin low at only $6 million in 2008
and grow to $14 million by the last year of the
agreement in 2029. Here is the problem.
McWhinney’s Centerra Metro District only
reported total revenues in 2008 of barely over $8
million. The revenue comes from various sources
but mostly diverted property taxes that are rebated
by Larimer County to the Centerra Metro District’s
urban renewal authority ($5 million) and the
improvement district “fees” that are collected like
sales taxes from shoppers in Centerra ($2 million).
|Ballot Measures Influence on
One argument Centerra has made to encourage a
favorable vote from Loveland's council to extend
the period of indebtedness for future Centerra
bonds is that Colorado Proposition 101 and
proposed Colorado Constitutional Amendments 60
& 61 will detrimentally impact Centerra's ability to
incur new debt and may threaten existing revenue.
Here is a summary of the three ballot measures
prepared by Larimer County opposing them while
forecasting significant problems for local and state
governments if passed by Colorado voters.
Also, here are the websites of groups supporting
each of the same three ballot measures.