Loveland's Independent News Source
Loveland, May 27, 2015

Thursday morning a small group of Loveland downtown insiders, city staff and elected officials will convene
in the city manager's conference room at 7:30 AM to approve a plan to authorize over $85,000,000 in public
expenditures for the newly defined boundaries of downtown Loveland.  

The plan calls for $35 million from the City of Loveland directly and another $17 million from "other" public
sources in non-public infrastructure spending.  An additional, $28 million is being called for in "public"
infrastructure to compliment private improvements.

The group is the city's new DDA (Downtown Development Authority) headed by Texas transplant and owner
of the successful downtown eatery
MoBetta Gumbo, Clay Caldwell.  Caldwell attempted to raise over $5
million from the city to acquire and renovate the Arcadia Hotel in downtown Loveland previously but was

Caldwell now serves as largely a figure head for the city's effort spearheaded by Detroit transplant and
economic development staffer
Mike Scholl to renovate downtown Loveland.   The group is approving Scholl's
resolution to be presented to Loveland's City Council at a later meeting authorizing a TABOR (Taxpayers Bill
of Rights) mandated voter approval for the November 3, 2015 election to create debt and divert taxes into
the DDA.  
see meeting agenda and spending anticipated for the $85,000,000

Loveland downtown development is split between two organizations.  One is to be the public entity
authorized to collect taxes and raise public debt calling itself the Downtown Development Authority or DDA
which is also taking over the former URA (Urban Renewal Authority).  The other,
Loveland Downtown
Partnership (LDP), is headed by Harry Devereaux, President & CEO of Home State Bank, and will be making
the spending decisions on where and how to expend public monies raised through the public authority of
the DDA.  Scholl, according to our sources, assured local businesses and city council that the DDA budget is
only "preliminary" and that Caldwell and others on the DDA board will not be making any spending
decisions reserved for the LDP.

DDA Connection to Sprouts $2.2 Million Subsidy

Jim Cox, Chairman of Loveland's Historic Preservation Commission and also board member of the LDP sent
an email to LDP members shortly before the January 6, 2015 Loveland City Council vote to provide final
approval of the $2.2 million Sprouts subsidy.

Cox explained in his email that Sprout's locating on the corner of Highways 287 & 34 was critical to the
future funding of the DDA therefore everyone needed to come out and support the subsidy.  Cox is also
reported to have contacted members of his own Historic Commission and local businesses to encourage
more people to attend the council meeting and show public support for the Sprouts subsidy  in order to
"support downtown."  

Sprouts is critical to the DDA's funding as all new tax revenue and increased property taxes (called
"increment" financing) will go directly into the DDA's treasury for the LDP instead of to the city should voters
approve the new taxing authority this November.  In addition, 50% of all sales taxes in downtown have
already been diverted by the Loveland City Council into future downtown development activities so locating
a new Sprouts into the official downtown area will divert future sales taxes as well.  In other words, locating
a new organic grocery store inside the new DDA boundaries (as opposed to the proposed
Natural Grocer
location outside the downtown boundaries) will divert millions of future tax dollars into downtown
development activities instead of going to the county, schools and city.

Scholl extended the boundaries of Loveland's official downtown area far north of its traditional boundary
last year to include the 5 parcels on the northeast corner of Highways 287 & 34 which became part of the
Sprouts deal.  On February 10, qualified electors (landowners, lessees and residents of the newly proposed
downtown) approved the new boundary by voting in favor of Ballot Question 1 thus authorizing the creation
of the new DDA boundaries.

Scholl has been rumored to be a candidate for the position of director of the new DDA where he has been
directing companies but some on council have said they will not approve him taking that position.
Loveland Downtown Partnership (LDP)
Rallies For Sprouts Subsidy