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Loveland January 10, 2008

The owners of property near I-25 and 402 Southeast of Loveland’s current border have presented the City of Loveland a
proposed pre-annexation agreement.  The owners are looking for the City of Loveland to commit to certain zoning, 1% of
taxes collected on the property for 25 years, coerced purchase of water shares by the city at a price of approximately 20%
above market value and other considerations in exchange for the owners agreeing to annex their property into the City of
Loveland.

Loveland’s City Council discussed the proposed agreement for the first time in public during their January 9, meeting.  The
agreement was apparently first drafted by the land owner’s attorney on December 28, 2007 but the current version now
available to the public differs from the previous drafts distributed to Council.  The Council scheduled a special meeting for
February 6, 2008 to consider the agreement and possibly take action.

While the City Manager represented the proposed agreement as that coming from the property owners, he mentioned
several times in the course of the evening "that is why I didn't put that in there."  The negotiated agreement appears to be the
work product of ongoing negotiations.

Among the primary concerns expressed by council was the demand for selling water shares attached to the property at
$70,000 per share.  The City Council recently purchased water shares with the 402 property purchase at $50,000 per
share which is closer to market rate.  Councilman Klassen expressed concern over paying so far over market price for the
water shares while Larry Heckle said it didn’t matter.

Councilman Klassen stated he would like to hear from residents anywhere in the city regarding these actions.  “I would like
the citizens of this community to call me and give their opinions…..give us counsel and guidance and opinions on how to
proceed.”  Councilman Rousey, who traded comments on LovelandPolitics website blog regarding the previous property
annexation where the city purchased the property outright, said he never received any calls or mail from anyone who was
against the deal.  Mayor Pielin said the Reporter-Herald already did a survey and the average person in Loveland supports
annexing the property near 402 into the City of Loveland.

Councilman Gutierrez suggested the question isn’t really whether people agree with annexing the area into Loveland but
really what is the cost versus benefits of the current proposed agreement.  He stated, “We need to study the cost versus
benefits” of the agreement.

Mayor Pielin shot back, “The point is when you get commercial out there you get employment out there which is what you
ran on - by the way.”  Gutierrez corrected the Mayor by saying he ran on employment in the core of the city.  
Council Discusses Pre-Annexation Agreement
A special meeting is set for Council on February 6, 2008 to vote on agreement
City Manager Don Williams confers with Mayor
Pielin before Jan. 9, Council Meeting
City Manager Don Williams during Jan. 9, 2008
Council Meeting
See Mayor Pielin throw a sarcastic
barb at Concilman Gutierrez by
politicizing the discussion
City Manager Outlines Potential
Costs of Pre-Annexation Agreement
City Manager explains how water shares
bought at $70,000 can be sold at $50,000