Call a spade a spade. Bill Beierwaltes talked the former Loveland City Council out of nearly $1 million to invest in his company as a ‘business incentive’ to help bring more jobs to Loveland. Instead he began laying-off employees before finally selling the assets of the company to an East Coast concern.
Thanks to the efforts of then Councilmen Cecil Gutierrez and Kent Solt, Beierwaltes’ agreement with the city includes a personal guarantee signed by both Beierwaltes and his wife. The councilmen were skewered by the Loveland Reporter Herald’s Ken Amundson in an editorial for their insolence in not immediately writing the Loveland aristocrat a check once he dropped the magic word “JOBS” in his 2008 plea for $900,000 of hard earned Loveland taxpayer’s money. Thank God Amundson doesn’t have a vote on City Council!
Councilman Kent Solt angered his colleagues when he pointed to other companies that Beierwaltes started and later ran into the ground during the council deliberations. Beierwaltes whispered his net worth figures into council member’s ears and won instant credibility among the hay seeds on the former council. The idea that a smart person can protect their own wealth while risking yours is apparently beyond the comprehension of some (also demonstrated by their unhealthy affection for everything McWhinney).
Publicly declaring he would make good on city monies invested in his Colorado vNet LLC while privately refusing to honor the agreement in private is unfortunate behavior but apparently what members of Loveland’s City Council are accusing Beierwaltes of doing. His agreement with the city prohibits transferring the obligation without prior approval of the city — something Beierwaltes apparently decided to ignore or was hoping the city would ignore.
The new entity, that has no agreement with the city, has apparently already indicated they will not have 250 employees working at the facility improved with Loveland tax dollars by the agreement deadline of December 31, 2012. For his part, Beiewaltes is reported to have claimed he doesn’t owe the city anything until that date because he technically didn’t sell his company (which still exists but in name only as all the city purchased assets were transfered over to the new owners). Beierwaltes, a contributor to previous council campaigns, may be hoping a turn-over on council before the end of 2012 will allow him to quietly walk away from the commitment without public notice (especially if negotiated in closed session council meetings).
In case you were not paying close attention, the new company is Colorado vNet Corp. and Beierwaltes’ company is Colorado vNet LLC. Very clever. Working behind the scenes with his neighbor Councilman Hugh McKean, Beierwaltes may have felt his problem was solved until four council members refused to continue discussing the matter in closed session last Tuesday.
Hopefully the city will follow through this time since they decided last March to enforce the agreement. Despite the fact our hometown newspaper is taking his side, Beierwaltes doesn’t appear to have a very good case.