LovelandPolitics
| Loveland's Independent News Source |
Loveland - December 6, 2015
This Tuesday the Larimer County Board of Commissioners have scheduled 10 minutes during
their Administrative Matters meeting to consider kicking-in $375,000 from the county's Open
Space sales tax budget to Loveland's $2.5 million to purchase 188 acres from Loveland
resident William Beierwaltes. The Town of Berthoud is contributing $100,000.
The property, situated mostly in flood areas south of Southside Reservoir below Ryan's Gulch,
is being purchased along with water rights by the area governments for a total price of
$3,022,000. According to a Larimer County memorandum prepared by staff member Gary
Buffington, "This is an expensive purchase but the benefits for the public are strong."
Beierwaltes has boasted there is an eagle's nest on the property thus increasing its value for
natural conservation purposes.
According to the Larimer County Assessor's website, Luxor LLC (Beierwaltes' holding
company) purchased the 188 acres in 1997 for $1.4 million. James and Marilyn Pett sold
Beierwaltes 42.75 acres for an even $400,000 while Beierwaltes acquired the other 143.5
acres from Cottonwood Estates three months later for $1,052,600. Also included in the deal
will be a 1,600 square foot house on 2.5 acres located at 2400 W County Road 16 which
Beierwaltes acquired from Lloyd and Celeste Huber for $395,000.
The City of Loveland plans to submit the land purchase in its proposal to the Great Outdoors
Colorado (GOCO) "Large Landscape Project Initiative" this December in anticipation of
reimbursement by summer if the project is selected. Nonetheless, the City of Loveland is
already under contract to purchase the land from Beierwaltes before the grant process is
complete and will proceed in advance of the grant process.
Beierwaltes' Never Made City Whole for VNET Debacle Financial Loss
In 2008, working through friends on Loveland's City Council, Beiewaltes requested and
received just under $1 million cash subsidy for his vNet company in exchange for promises to
increase his number of employees to 250 by the end of 2012. Beierwaltes, a former HP
employee turned entrepreneur, was introduced as a very successful businessman but then
Councilmen Cecil Gutierrez and Kent Solt objected to the large subsidy citing examples of
companies Beiewaltes founded but later went bankrupt.
After receiving significant criticism regarding the agreement the city obtained a personal
guarantee from Beierwaltes to repay at least a partial amount of the subsidy should he fail to
generate the additional jobs promised by December 31, 2012.
Instead of generating jobs vNet began laying-off employees before selling the assets acquired
using taxpayer funds to another company. Beierwaltes argued he didn't violate the
agreement's provision prohibiting a sale without the city's written authorization since he only
sold the assets acquired with city funds and not the actual company, a now worthless LLC, he
and his wife still owned.
After years of litigation, a court awarded the City of Loveland the amount originally promised
by Beierwaltes plus attorney fees and interest. Working through councilors directly,
Beierwaltes, again, incredibly refused to pay the full court judgement later agreeing to settle
with the city for a reduced amount. For a full history of the vNet debacle see our vNet index
page.
Beierwaltes Vowed Never To Business With Loveland Again
While pitching a "clean coal" technology to Larimer County and Town of Berthoud officials
years ago during the vNet lawsuit Beiewaltes told the crowd of officials and reporters he
would not do business with the City of Loveland again. If successful, he was reported to have
said any jobs from his clean coal plant invention would be located anywhere except Loveland.
Apparently, the feeling isn't mutual as the City of Loveland is willing to enter into another
agreement with Beierwaltes to buy his property at what county staff describe as "expensive"
prices absent any demand he repay Loveland tapxayers. While Beierwaltes has not disclosed
the amount he was paid for the city acquired company assets he sold, Loveland taxpayers
never recouped approximately $500,000 lost to that sale.
This Tuesday the Larimer County Board of Commissioners have scheduled 10 minutes during
their Administrative Matters meeting to consider kicking-in $375,000 from the county's Open
Space sales tax budget to Loveland's $2.5 million to purchase 188 acres from Loveland
resident William Beierwaltes. The Town of Berthoud is contributing $100,000.
The property, situated mostly in flood areas south of Southside Reservoir below Ryan's Gulch,
is being purchased along with water rights by the area governments for a total price of
$3,022,000. According to a Larimer County memorandum prepared by staff member Gary
Buffington, "This is an expensive purchase but the benefits for the public are strong."
Beierwaltes has boasted there is an eagle's nest on the property thus increasing its value for
natural conservation purposes.
According to the Larimer County Assessor's website, Luxor LLC (Beierwaltes' holding
company) purchased the 188 acres in 1997 for $1.4 million. James and Marilyn Pett sold
Beierwaltes 42.75 acres for an even $400,000 while Beierwaltes acquired the other 143.5
acres from Cottonwood Estates three months later for $1,052,600. Also included in the deal
will be a 1,600 square foot house on 2.5 acres located at 2400 W County Road 16 which
Beierwaltes acquired from Lloyd and Celeste Huber for $395,000.
The City of Loveland plans to submit the land purchase in its proposal to the Great Outdoors
Colorado (GOCO) "Large Landscape Project Initiative" this December in anticipation of
reimbursement by summer if the project is selected. Nonetheless, the City of Loveland is
already under contract to purchase the land from Beierwaltes before the grant process is
complete and will proceed in advance of the grant process.
Beierwaltes' Never Made City Whole for VNET Debacle Financial Loss
In 2008, working through friends on Loveland's City Council, Beiewaltes requested and
received just under $1 million cash subsidy for his vNet company in exchange for promises to
increase his number of employees to 250 by the end of 2012. Beierwaltes, a former HP
employee turned entrepreneur, was introduced as a very successful businessman but then
Councilmen Cecil Gutierrez and Kent Solt objected to the large subsidy citing examples of
companies Beiewaltes founded but later went bankrupt.
After receiving significant criticism regarding the agreement the city obtained a personal
guarantee from Beierwaltes to repay at least a partial amount of the subsidy should he fail to
generate the additional jobs promised by December 31, 2012.
Instead of generating jobs vNet began laying-off employees before selling the assets acquired
using taxpayer funds to another company. Beierwaltes argued he didn't violate the
agreement's provision prohibiting a sale without the city's written authorization since he only
sold the assets acquired with city funds and not the actual company, a now worthless LLC, he
and his wife still owned.
After years of litigation, a court awarded the City of Loveland the amount originally promised
by Beierwaltes plus attorney fees and interest. Working through councilors directly,
Beierwaltes, again, incredibly refused to pay the full court judgement later agreeing to settle
with the city for a reduced amount. For a full history of the vNet debacle see our vNet index
page.
Beierwaltes Vowed Never To Business With Loveland Again
While pitching a "clean coal" technology to Larimer County and Town of Berthoud officials
years ago during the vNet lawsuit Beiewaltes told the crowd of officials and reporters he
would not do business with the City of Loveland again. If successful, he was reported to have
said any jobs from his clean coal plant invention would be located anywhere except Loveland.
Apparently, the feeling isn't mutual as the City of Loveland is willing to enter into another
agreement with Beierwaltes to buy his property at what county staff describe as "expensive"
prices absent any demand he repay Loveland tapxayers. While Beierwaltes has not disclosed
the amount he was paid for the city acquired company assets he sold, Loveland taxpayers
never recouped approximately $500,000 lost to that sale.
| Beierwaltes to Get $2.5 Million of City Tax Dollars Despite losing a lawsuit to Loveland over a failed business incentive and refusing to pay the total court judgement |
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WHEREAS, Colorado vNet has requested from the City certain economic incentives to help defray some of Colorado vNet's costs to remodel and relocate to the New Facility in Loveland; and WHEREAS, Colorado vNet has therefore asked the City to pay to Colorado vNet, in accordance with the terms and conditions of this Agreement, up to nine hundred thousand dollars ($900,000.00) to be used by Colorado vNet to help pay for some of its estimated costs to remodel and to relocate to the New Facility; and WHEREAS, on March 4, 2008, the City Council approved this Agreement in Resolution #R-23-2008 on the condition that the Beierwaltes guarantee the full performance of Colorado vNet's obligations under this Agreement; and WHEREAS, the Beierwaltes, as the controlling principals of Colorado vNet, are willing to guarantee these obligations; |
| William Beierwaltes (center) |
| Archive of vNet Stories |