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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