LovelandPolitics has obtained a copy of the document used to brief Loveland's City Council in the controversial March 1, 2011 secret council session to discuss a proposed amendment to the MFA (Master Financing Agreement) between the City of Loveland and developer McWhinney. The MFA is an agreement signed in 2004 between McWhinney and the City of Loveland allowing for the diversion of both sales and property taxes collected in Centerra to the McWhinney controlled Centerra Metro Districts until 2029 and amended to collect certain property taxes until 2040. Centerra is legally a quasi-governmental entity McWhinney set-up to pay for Centerra's development now in debt of over $100 million of municipal bonds.
The formerly secret document used in the March 1, 2011 meeting was heavily redacted (meaning certain information covered) before it was released to LovelandPolitics but still provides some clues regarding McWhinney's request. Amounts covered by a marker include the total subsidy McWhinney is seeking from the City of Loveland and Centerra for the still secret project.
Apparently, the request involves the development of a 16 acre parcel of land using Centerra Metro District monies including $700,000 set aside for the Crossroads Interchange and the I-25/ US 34 interchange improvements.
The document shows a total cost for both off-site improvements and city fees of $ 2.4 million for the project. Traffic signal and other off-site improvements are shown at $825,950 while the City of Loveland fees total $1,588,463. While the total subsidy sought is not disclosed since the "total" lines are redacted, the ones not covered reveal McWhinney is seeking to recapture monies not expended on regional transportation improvements along with a waiver of normal city fees used to fund the necessary expansion of police, fire, road maintenance and other basic governmental services.
Already, Loveland is projecting a $3 million deficit next year showing the current taxes collected in areas of the city outside Centerra combined with the partial sales taxes collected in Centerra cannot pay for the traditional levels of services residents have become accustomed to receiving. Loveland's financial advisory committee has organized a citizen input process to organize ideas of which services to residents can be cut or taxes increased to make-up for the short-fall in revenue. Centerra's rebate in sales taxes alone (not including property tax rebates) last year approximated $3 million in lost city revenue.
McWhinney Seeks More Amendments To MFA Also McWhinney's Metro District Is Looking to Pocket $700,00 Traffic Improvements