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2008 Business
Incentive Agreement
Between the City of
Loveland and
Bill Beierwaltes'
vNET Company
Last August Councilman Kent
Solt (
left), favored enforcing the
vNet agreement, opposed by
(
right), who argued the city owes
vNet an "Olive Branch."
The Agreement - By The Numbers
Promised number of jobs by 2012..................................250
Less 15% not required to be in Loveland (per agreement)...........37
Less the people already working for company.......................78
Actual total of new jobs in Loveland required by agreement.......134

Penalty for default - $2,000 per employee

Total liability.............................................$500,000

Amount Not Recoverable by Loveland in the event of default..$400,000
Loveland's vNet debacle began officially in January of 2008 when
McWhinney Enterprise's Rocky Scott first proposed to the Loveland
City Council (during an annual retreat meeting at Group Publishing)
Scott's
brainchild to give companies cash to bring jobs.

Days after the retreat, council members who were friends with vNet
LLC owner Bill Beierwaltes orchestrated a letter by Beierwaltes to
the City of Loveland on January 15, 2008 requesting $890,000 to
move vNet employees out of downtown Loveland and into a larger
facility that required lease-holder improvements.

The Loveland Reporter-Herald cycled in and out various reporters
over the years on this story that relied primarily on a narrative
provided by city staff to report the context and background for the
vNet subsidy.  This resulted in a number of contradictory stories
along with factual errors and even a scathing editorial by the
Reporter-Herald newspaper attacking Councilmen Cecil Gutierrez
and Kent Solt for not supporting the vNet subsidy.

Only LovelandPolitics provided readers the actual agreement, the
behind-the-scene personal maneuvering by people like former
Councilman Walt Skowron (both friend and neighbor to
Beierwaltes) and other relevant facts to explain how the City of
Loveland was allowed to enter into such a poorly constructed
agreement that allow Beierwaltes to receive $400,000 even if didn't
ever perform his obligations under the agreement.

Below is a chronologically arranged index of those in depth stories,
a link to the actual agreement Beiewaltes signed with the city for
your review and a summary table showing the highlights of the
agreement.v
vNet Stories Index
should his company fail to meet the conditions negotiated in a subsidy
agreement giving his privately held company $900,000 in taxpayer
dollars in exchange for bringing 134 jobs to Loveland by 2012.

By the end of the year Beierwaltes laid-off the majority of his
employees and later sold all the assets of the company to another entity
assets of vNet and not the legal corporate entity which is now an
empty shell company he still owns.

Apparently, Loveland City Attorney John Duval failed to anticipate
such a move therefore the city's agreement with Beierwaltes only
contemplates a sale of the company but not the assets.  Beierwaltes has
exploited this error by claiming he didn't owe the city any money before
December of 2012.
vNet Index Page