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
"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

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

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