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| Fire Safety Funds Raided To Complete Last Minute Property Purchase By Lame-Duck Council Councilman Skowron is personally attacked by Heckel for asking too many questions |
Loveland, November 8, 2007
On November 6, 2007 as many in Loveland gathered for the final election returns that already showed at least two
incumbents for city council were going to lose the election, the lame-duck council met to rush through last minute massive
property acquisitions using reserve funds never intended for land acquisitions.
Loveland City Manager Don Williams placed the controversial purchase of 98 acres by the City of Loveland at 1452
South County Road on the council's consent agenda (a consent agenda is normally used by cities to pass in groups
perfunctory ordinances like an updating of codes where there is unlikely to be any dissenting views or discussion).
Apparently, concerned about potentially losing the majority he needed on Council to rush through these massive land
acquisitions, Williams negotiated purchase contracts that not coincidentally terminated on election day if not acted upon
thus cementing any speculation that his haste was due to politics. The 98 acres sits at the northwest corner of the I-25
and highway 402 south of Loveland. The city intends on annexing the property once it is purchased. In addition, the city
intends to sub-divide the property and to allow Don Williams to privately negotiate agreements with various local
developers to buy the annexed, subdivided and possible utility improved properties. Some developers, like Williams'
friend and fellow motorcycle riding companion, Don Marostica, will likely have an advantage if a non-public process is
followed by Williams again in negotiating the subdividing and selling of the property.
The actual decision to purchase the property was made over a phone call weeks prior to the meeting between a majority
of the City Council and Don Williams. Councilman Heckel promised some of his doubtful colleagues during that call the
city can "flip-it" and make a bundle of money. Because secret meetings to decide how to appropriate funds are illegal in
Colorado, Heckel carefully reminded his colleague Walt Skowron of their previous decision before the vote without
being too specific. As Skowron pushed for details about past discussions Heckel couldn't disclose, Heckel became even
more angry.
The purchase price of $4,850,000 will be funded from capital expansion funds and monies collected from new
development to expand emergency services and provide park services for a growing population. $3,200,000 was
raided from funds intended for emergency fire services and $2,000,000 from funds intended for recreational
improvements like new city parks. The scheme is to borrow from the fire and recreation internal funds and pay it back
over ten years (using internal IOU's) thus bringing the real cost of the property acquisition to city taxpayers to
$6,795,486 when interest is included. The "Rob Peter to Pay Paul" concept is a technique employed by Williams to
avoid having to comply with the TABOR requirement that new indebtedness by the city in these amounts must be
approved by voters unless borrowed from internal reserves.
Councilman Walt Skowron became the skunk at the garden party when he asked to pull the item from the consent
agenda and began asking due diligence questions. Skowron appeared to be poking at the political motivations by asking
questions like, why do we need to rush to buy property that has been on the market for two years if we are paying the
full asking price?
Williams and his supporters on council refused to engage Skowron in any meaningful discussion. Instead, Councilman
Larry Heckel responded with outrages personal attacks upon Skowron by questioning his integrity and later accusing
Skowron of not being smart enough to understand the deal. In fact, Heckel was angry over Skowron poking at the fact
the real decision had already been made in private contrary to Colorado's Open Meetings Laws.
Skowron tried to emphasize the point that he wasn't questioning the purchase itself but instead the process by which it
was being approved and financed. He commented,
"I think the time lines and the information given to me..ah..was inadequate."
Heckel angrily shot back, "Walt that is a false statement by you!" Heckel claimed Skowron was also fully briefed
(presumably in closed session since the financing was never fully briefed by staff to council in a public session).
Skowron also commented, "The financing methodology that we are using -- I look at this as an off-balance
sheet debt. Its an off-balance sheet [debt] with 10 years of IOU's and paying interest with public money is a
method of financing that I just don't agree with..so¦I know we did not spend more than a minute or two
about the financing methods to purchase this property."
Williams was either unwilling or unable to respond to Skowron regarding which specific funds were being raided to pay
for the unplanned property purchase and looked to the assistant city manager for help in answering where the money was
coming from to purchase the property.
Councilman Larry Heckel's comments were nasty and appeared more like personal attacks on a Jerry Springer Show
instead of meeting of public officials. This came after Skowron offered to go through the document "line-by-line" when
Heckel questioned the sincerity of his interest in wanting to know more about the deal. Heckel interrupted, "I don't
think it would do any good. I don't think you would understand it." SEE VIDEOS TO THE RIGHT OF THIS
STORY.
In the end, City Manager Don Williams prevailed by pushing through the lame-duck council on a nearly unanimous vote
(Skowron was the only member to vote no) the hasty purchase of 98 acres by the City of Loveland.
At least two of the three newly elected council members (Cecil Gutierrez and Kent Solt) who promised a change in
priorities away from subsidizing further sprawl along I-25 and back towards downtown will have a tough time. The
payments on the debt will likely tie-up discretionary money from the general fund and limit their choices. Selling the
property after annexation may also be difficult since the city paid a price for the land the private sector was unwilling to
pay for the two years it sat dormant on the market. The haste to make a decision that night was clearly political and not
market driven.
On November 6, 2007 as many in Loveland gathered for the final election returns that already showed at least two
incumbents for city council were going to lose the election, the lame-duck council met to rush through last minute massive
property acquisitions using reserve funds never intended for land acquisitions.
Loveland City Manager Don Williams placed the controversial purchase of 98 acres by the City of Loveland at 1452
South County Road on the council's consent agenda (a consent agenda is normally used by cities to pass in groups
perfunctory ordinances like an updating of codes where there is unlikely to be any dissenting views or discussion).
Apparently, concerned about potentially losing the majority he needed on Council to rush through these massive land
acquisitions, Williams negotiated purchase contracts that not coincidentally terminated on election day if not acted upon
thus cementing any speculation that his haste was due to politics. The 98 acres sits at the northwest corner of the I-25
and highway 402 south of Loveland. The city intends on annexing the property once it is purchased. In addition, the city
intends to sub-divide the property and to allow Don Williams to privately negotiate agreements with various local
developers to buy the annexed, subdivided and possible utility improved properties. Some developers, like Williams'
friend and fellow motorcycle riding companion, Don Marostica, will likely have an advantage if a non-public process is
followed by Williams again in negotiating the subdividing and selling of the property.
The actual decision to purchase the property was made over a phone call weeks prior to the meeting between a majority
of the City Council and Don Williams. Councilman Heckel promised some of his doubtful colleagues during that call the
city can "flip-it" and make a bundle of money. Because secret meetings to decide how to appropriate funds are illegal in
Colorado, Heckel carefully reminded his colleague Walt Skowron of their previous decision before the vote without
being too specific. As Skowron pushed for details about past discussions Heckel couldn't disclose, Heckel became even
more angry.
The purchase price of $4,850,000 will be funded from capital expansion funds and monies collected from new
development to expand emergency services and provide park services for a growing population. $3,200,000 was
raided from funds intended for emergency fire services and $2,000,000 from funds intended for recreational
improvements like new city parks. The scheme is to borrow from the fire and recreation internal funds and pay it back
over ten years (using internal IOU's) thus bringing the real cost of the property acquisition to city taxpayers to
$6,795,486 when interest is included. The "Rob Peter to Pay Paul" concept is a technique employed by Williams to
avoid having to comply with the TABOR requirement that new indebtedness by the city in these amounts must be
approved by voters unless borrowed from internal reserves.
Councilman Walt Skowron became the skunk at the garden party when he asked to pull the item from the consent
agenda and began asking due diligence questions. Skowron appeared to be poking at the political motivations by asking
questions like, why do we need to rush to buy property that has been on the market for two years if we are paying the
full asking price?
Williams and his supporters on council refused to engage Skowron in any meaningful discussion. Instead, Councilman
Larry Heckel responded with outrages personal attacks upon Skowron by questioning his integrity and later accusing
Skowron of not being smart enough to understand the deal. In fact, Heckel was angry over Skowron poking at the fact
the real decision had already been made in private contrary to Colorado's Open Meetings Laws.
Skowron tried to emphasize the point that he wasn't questioning the purchase itself but instead the process by which it
was being approved and financed. He commented,
"I think the time lines and the information given to me..ah..was inadequate."
Heckel angrily shot back, "Walt that is a false statement by you!" Heckel claimed Skowron was also fully briefed
(presumably in closed session since the financing was never fully briefed by staff to council in a public session).
Skowron also commented, "The financing methodology that we are using -- I look at this as an off-balance
sheet debt. Its an off-balance sheet [debt] with 10 years of IOU's and paying interest with public money is a
method of financing that I just don't agree with..so¦I know we did not spend more than a minute or two
about the financing methods to purchase this property."
Williams was either unwilling or unable to respond to Skowron regarding which specific funds were being raided to pay
for the unplanned property purchase and looked to the assistant city manager for help in answering where the money was
coming from to purchase the property.
Councilman Larry Heckel's comments were nasty and appeared more like personal attacks on a Jerry Springer Show
instead of meeting of public officials. This came after Skowron offered to go through the document "line-by-line" when
Heckel questioned the sincerity of his interest in wanting to know more about the deal. Heckel interrupted, "I don't
think it would do any good. I don't think you would understand it." SEE VIDEOS TO THE RIGHT OF THIS
STORY.
In the end, City Manager Don Williams prevailed by pushing through the lame-duck council on a nearly unanimous vote
(Skowron was the only member to vote no) the hasty purchase of 98 acres by the City of Loveland.
At least two of the three newly elected council members (Cecil Gutierrez and Kent Solt) who promised a change in
priorities away from subsidizing further sprawl along I-25 and back towards downtown will have a tough time. The
payments on the debt will likely tie-up discretionary money from the general fund and limit their choices. Selling the
property after annexation may also be difficult since the city paid a price for the land the private sector was unwilling to
pay for the two years it sat dormant on the market. The haste to make a decision that night was clearly political and not
market driven.
| VIDEO 1 Skowron objects To backroom negotiated deal - objects to funding methods and lack of information |
| VIDEO 2 Councilman Larry Heckel Insults Skowron saying stating he doesn't need information because he will not understand it anyway |
| VIDEO 3 Councilman Heckel interrupts Councilman Skowron saying, "that is a false statement by you." Heckel continues Heckeling his colleague |
| VIDEO 4 City Manager downplays the $3 million coming from Fire Safety - vast majority of the funding from this source but he pretends not to know |
| See video clips below of the Nov. 6, 2007 meeting where Councilman Heckel attempt to shut-up Councilman Skowron and City Manager pretends not to remember he is raiding $3 million of fire safety funds for property acquisition. |
