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City/Klen Settlement
Bittersweet
Loveland April 24, 2013

Three years ago Loveland Mayor Cecil Gutierrez told LovelandPolitics he would not settle with the Klens in
their lawsuit against the city (
after being fined for building without a permit) because he thought the city could
win easily in court.  Earlier this month and a quarter of a million dollars later in city legal costs, Mayor Cecil
Gutierrez apparently lost confidence and agreed to settle the case instead of going to trial along with the rest of
the city council.

Adding together the settlement costs, outside legal counsel bills over $300,000 and internal city time the
lawsuit has easily cost taxpayer's well over $1 million.
  

According to the settlement agreement, the Klens will be receiving a check from the City of Loveland by today
for just under half a million dollars.  Nonetheless, they are not terribly happy.  News recently surfaced that
McWhinney is looking to bring a larger shooting range into Loveland's Centerra and the potential "big name"
backing the project may invest $20 million.

Centerra Shooting Range - the bitter part

LovelandPolitics has learned Centerra developer McWhinney is in negotiations with what one source described
as a "big name investor" to develop a "$20 million" shooting range in Centerra and is seeking financial
participation from the City of Loveland beyond the many subsidies McWhinney already receives by way of a
sales tax reduction, property tax waivers and building fee waivers.  Details of this private shooting range facility
have not yet been made public but the Klen's Front Range Gun Club could be vulnerable since it located near
Centerra but doesn't enjoy the many city tax incentives provided to businesses willing to locate in McWhinney's
Centerra development.

Should the city decide to support the planned Centerra shooting range, it could jeopardize the annual payment
of $47,000 to the Klen's by the city over five year contemplated in the settlement agreement.  As part of former
City Manager Don William's apparent vendetta against the Klens,  the City of Loveland pulled out of an
agreement to use their indoor shooting range in Loveland for police training right as the Klens took over
operation of the facility.  The current city manager and staff never reversed that decision until settling a lawsuit
with the Klens on an unrelated matter.

In addition to McWhinney looking to build a gun range, Loveland's Police Department has been in talks with
Larimer County's Sheriff over building what is described as a "regional law enforcement range" in Loveland for
use by multiple area law enforcement agencies from Greeley to Ft. Collins.    A five-acre parcel of land within
Loveland's city limits and located near the Ft. Collins-Loveland Airport has been visited by boosters of the
regional law enforcement indoor shooting range to evaluate the site for this purpose and ask Larimer County to
donate the land.

Should McWhinney succeed in obtaining potential funding for the regional law enforcement shooting range to
combine with their private venture, it will create a formidable competitor perhaps with city money to compete
against the Klen's current facility.
Highlights of Settlement

1. By April 24, City of
Loveland to pay the Klens
$495,000.00

2.  City approval for an
application to
expand the
Klen's Front Range Gun
Club by 8,700 ft.
(second
floor to existing range)

3.  5-year service contract
by City of Loveland to use
the Klen's range for
police
training at a monthly cost
of $3,989.17
reviewed on
an annual basis

4. Confidentiality - Klens
agreed not to disclose or
discuss settlement
agreement or terms