From: Ward IV - Dave Clark <>
Sent: Wednesday, July 10, 2019 11:55 AM
To: City Council; Ward IV - Dave Clark; Moses Garcia; Alan Krcmarik
Cc:; Temp CCMAIL
Subject: Mayor's letter to Centerra

Steve and Moses

Last night at the council meeting you provided the council a copy of a letter sent from the mayor to Centerra Metro
Districts. From my initial review, I have a few questions regarding this letter.

*   Letterhead - This letter is on City Letterhead with a title of "Office of the Mayor".  This took me by surprise. First of all,
there is no formal physical "Office" of the Mayor in our city buildings. Do you, or someone else, know when this
letterhead was started? Perhaps it has been around for awhile and I was just not aware of it? If this was recently
created, I wonder why the council was not part of the discussion to add this?
*   The letter was sent directly from the Mayor to Centerra Metro Districts - with a copy going to the City Attorney, Moses
Garcia and a copy to the City CFO, Alan Krcmarik. However, NO copy to the City Manager, Steve Adams and NO copy
to the City Council. This seems odd to me??!!  Why would the Mayor copy someone on your staff (Alan Krcmarik) and
not copy their boss (the City Manager - you)?  And why would the Mayor not copy the City Council on this?
*   As I understand our City Charter, and as we have discussed several times as a council, the Mayor does NOT have
any authority to act individually on behalf of the city just as any Councilor does not have the authority to act individually
on behalf of the city. The City Council acts as a body.
*   This letter to the Centerra Metro Districts is a MASSIVE request for information by only one single member of council.
Again, as we have discussed several times in the past, any single member of Council does NOT have the authority to
make this type of request without the approval of a majority of Council. We do have the rule of 4 - but this is only to get
an item added to a future meeting. This request for information from the Mayor clearly violates this rule.

So - with that said, I would suggest that
this letter to the Centerra Metro Districts requesting information is not
valid and should be ignored
. The Mayor (as well as any other councilor) certainly has the right to bring this up to
council in a future meeting and request support from other members of council to ask for this information.

I would appreciate a response from both Steve (City Manager) and Moses (City Attorney) as to whether my assumptions
are correct or not.

Please note - I have copied this email to the City Council, the City Manager, the City Attorney, the City CFO, and Mr.
David Crowder, General Manager of Centerra and a Board Member of the Centerra Metro Districts.


Dave Clark
Loveland's Independent News Source
© 2015 by Brendan Weston Photography
All rights reserved all original photography on this website
Council Approves An Additional $43,850,000 in Unrated
                Debt for Centerra - Going to 2048

Last November, McWhinney appeared before Loveland’s City Council with some urgency to request
authorization for an additional $43,850,000 of public debt for the Centerra metro districts.  In 2018, the Centerra
Metro Districts were facing growing debt payments on their nearly $200 million of unpaid public debt and
rumored to be out of cash thus unable to make their year-end December payment.

Apparently desperate and seeking to avoid public debate, McWhinney’s request for even more debt (
to assist in
paying current debt obligations
) was scheduled as the last agenda item of a long meeting for November 5,
election night, when people’s attention would be focused on the national, state and local election results instead
of a ‘routine’ city council meeting.

As expected, McWhinney controlled Centerra Metro District’s request to take out another $43.8 million in
additional public debt was approved election night on an 8-1 vote with Loveland’s Mayor the sole dissenter.  
McWhinney promised to use $5 million to improve Boyd Lake Avenue North to their own properties while the
other $35 million was largely not discussed but assumed to assist the cash strapped metro district.  Contrary to
their original 2004 agreement with the city, McWhinney was not required to complete any regional transportation
project (as defined in the original agreement) before or after burdening a large swath of real estate with
additional public debt.  

Loveland Councilman Donald Overcash pretended his same question he asks every time McWhinney appear
before council; is the city liable if Centerra goes belly-up and cannot repay this new debt.  Overcash wore a
smug smile as the Centerra representative said essentially no because the city’s 2004 Master Financing
Agreement (MFA) absolved the City of Loveland of any liability for Centerra’s metro district public debt.

Broken Promises and Overly Leveraged Metro District

A combination of rising interest rates, declining sales (Promenade Shops At Centerra lost 4% last year) and a
terribly over leveraged Metro District combined to create an untenable situation in late 2018 likely leading to the
near-emergency debt request.

According to McWhinney attorney Allen D. Pogue, the new municipal bonds are “not rated” meaning they don’t
even qualify for
Moody’s, S&P or Fitch’s “junk bond” rating status of triple B to D (default) ratings.  Accordingly,
the new public debt terms read something like the infamous Payday Loan Services for borrowers with little to no

According to documentation provided to council, the Centerra Metro Districts will now only pay interest (no
principle) until 2032.  In addition, the total amount owed can actually grow with compounding interest if a
payment is missed meeting the definition of “forever bonds” since compounding debt can have a snowball effect
making repayment of the principle impossible without another infusion of cash taken or borrowed from another
source.  Even without the compounding interest, the total repayment with interest by 2048 will cost city
taxpayer's $111,366,028.

2004 Master Financing Agreement (MFA) Failed Promises

Early last year the McWhinney’s loudest supporter on Loveland’s City Council, Don Overcash, published a
commentary in the Loveland Reporter-Herald defending the 2004 MFA (signed while he was still a pharmacist in

While Overcash defends the 2004 MFA, he has regularly voted with the majority to fundamentally alter the
agreement to the benefit of McWhinney by removing the very purpose of the agreement to fund regional
transportation projects and generate sufficient sales taxes to contribute in aggregate to the city's general fund.  
As originally envisioned and negotiated, the City of Loveland would approve public bonds for McWhinney’s
Centerra Metro District only in phases as the public monies are spent on Regional Transportation Improvements
not only to improve properties owned by McWhinney.

As most Loveland commuters know well, the gridlock on Highway 34 is an ugly and daily reminder of the
consequences of a city council unable or unwilling to enforce the original terms of the 2004 Master Financing
Agreement signed by McWhinney to divert $600 million in taxes over 25 years; except now the debt can go on
indefinitely while the promised regional transportation improvements like widening Highway 34 over I-25 go
Loveland, January 17, 2019

Local developer McWhinney has reserved time on the Loveland City Council’s February 19, 2019 meeting agenda to
present what Mayor Jacki Marsh previously referred to as an “informercial” for their development company.  

At less than a year until Loveland’s next municipal elections, McWhinney’s allies on Loveland’s City Council are looking
for top cover from constituents who are questioning the unending subsidies the city continues to bestow upon the
McWhinney family and the properties they acquire.  The late February presentation will be the second in as many
years by McWhinney to provide a “progress report” to the city on their Centerra Metro District.

You will see plenty of pre-meeting publicity in the Loveland Reporter-Herald, city broadcasting mediums and individual
councilmember’s Facebook pages whose seats are up for re-election at the end of this year.  Curiously, these same
fonts of ‘public information’ were conspicuously quiet late last year about a substantive request by McWhinney placed
before the city council.
McWhinney Apologist, Kathi Wright, Running
For Loveland Mayor

March 4, 2019

A rumor has been circulating in Loveland that Councilwoman Kathi Wright attempted to dissuade Mayor Jacki Marsh last
Thursday at her store, Rabbask Design on 4th Street, from seeking re-election as Mayor of Loveland this November to
another 2-year term.

LovelandPolitics called Mayor Jacki Marsh for comment to determine if the rumor is accurate. According to Mayor Marsh, Kathi
Wright did make an unscheduled visit and disclosure at her shop last Thursday, and apparently told the sitting mayor "
thinks Councilman Don Overcash can beat you for mayor this November, therefore I am going to be running and
wanted you to hear it from me first."

According to Marsh, the message was polite but intended to discourage her from seeking re-election.  She was surprised by
the announcement since announcing your candidacy this early triggers a requirement to report campaign expenditures by
registering with the city clerk.  LovelandPolitics verified Wright has not yet filed the required paperwork to begin reporting
campaign expenditures.

Kathi Wright, a longtime popular director of the Boys & Girls Club in Loveland, was first recruited to run for city council in Ward
2 to keep Jacki Marsh off the city council.  Marsh had already announced she was running for city council in Ward 2 in 2017
and was expected to run unopposed before Kathi later entered the race.  

Wright is an unabashed McWhinney booster who as recently as two weeks ago lectured her colleagues and the community
about the need to show the McWhinney brothers, who were listening in the audience, more gratitude.  Wright used her time
during the annual Centerra presentation to the Loveland City Council, not to ask any questions of the developer
but instead
laud them with praise while claiming the community doesn't understand how much they care about Loveland.

LovelandPolitics reported, prior to the 2017 municipal elections, that both Gail Snyder, a Republican, and Kathi Wright, a
Democrat, were likely recruited by special interests to stop McWhinney critic Jacki Marsh from being elected to the Loveland
City Council.  Troy McWhinney friend and former Councilman Hugh McKean recruited Gail Snyder while current Councilwoman
Leah Johnson takes credit for assisting Wright's campaign, presumably on McWhinney's behalf, to successfully run for Council
from Ward 2 which encompasses the west areas of Loveland and the historic downtown.

Marsh waited until the very last minute to submit a petition to run for mayor instead thus surprising the only two candidates at
the time, Councilman John Fogle and former Councilman Larry Heckle.  Fogle later complained he split the vote with Heckle
who shares similar views.  Fogle's introduction by then Mayor Cecil Gutierrez around town as the future mayor backfired when
newcomer and outsider Jacki Marsh garnered 47% of the vote in a three way race for mayor.

Following Marsh's entrance into the 2017 mayoral race, the McWhinney organization hosted a fund-raiser at the club house at
Centerra Lakes to raise money for mayoral candidate John Fogle.  Despite the considerable financial support from
McWhinney including many contributions from their employees and supporters even in Southern California, Fogle's plus
$30,000 campaign failed to garner much above 30% of the vote while the winner, now Mayor Jacki Marsh's campaign, raised
only $4,000 from local residents and $8,000 contributed from Marsh's own funds.

Fogle consolidated his IT business of installing home theaters with his pawn shop now in his commercial property on Highway
402 south of town.  Rumors are Fogle cannot gain support from McWhinney to try another run for mayor given his poor
performance in 2017 and he doesn't have the means to self-fund another run for mayor.

Mayor Pro Tem Don Overcash, a Republican, is likely to still seek the seat making Kathi Wright the spoiler Democrat against
fellow Democrat Jacki Marsh.  The plan may not be as clever as those planning the race believe.  Republican Dave Kaufman
is among the prominent Republicans who backed Democrat Jacki Marsh's run against Fogle and Heckle in 2017.  Local
government seats are supposed to be non-partisan and Marsh's coalition of both Democrats and Republicans during her run
in 2017 appeared to overcome the cynicism of local partisans.

Besides chastising Lovelander's for failing to honor the McWhinney family in the manner she believes they deserve, Wright
has been largely quiet on council only voting with the majority on every issue without contributing to the discussion.  Little is
known about Wright's views regarding city issues as she is reticent to engage in any debate with colleagues and simply
repeats how much she would prefer if
"everyone can just get along."
Loveland Councilwoman Kathi Wright
apparently running for Mayor of
Loveland to make sure the community
provides the McWhinney family the
gratitude she believes they deserve
McWhinney brothers Chad (left) and Troy
(right) watch as Councilwoman Kathi
Wright thanks them for their contributions
to the community and apologizes for the
community during the February 19, 2019
City Council meeting.
Centerra's New 'Forever Bonds'
Press Intimidation?
Loveland City Councilmen Dave Clark and Don Overcash are accused of
conducting a "shakedown" against Loveland Reporter-Herald reporter Julia
Rentsch at Loveland's Coffee Tree last April

read full story - there is a recording
Loveland City
Councilman Dave
Loveland City
Don Overcash
Mayoral Candidate and Councilman Encourages Metro
District to Ignore Mayor's Request for Information
Councilman David Clark sent an email (full version below) stating "this letter to the Centerra Metro Districts
requesting information is not valid and should be ignored."

Loveland Mayor Jacki Marsh sent a letter to the Centerra Metro District managers seeking information regarding their
expenditures, number of employees and other related topics.  Per the Loveland Urban Renewal Authority (LURA),
which funds a significant portion of the approximately $200 million of public debt payments incurred by McWhinney's
Centerra Metro Districts, Jacki Marsh is the Chair of the LURA board of directors and has both statutory and regulatory
obligation for oversight of the metro district LURA funds.

Marsh's predessesor, then Mayor Cecil Gutierrez, routinely used stationary stating "Office of the Mayor" making the
objections by Clark in his email mostly benign.  Loveland's legal counsel followed Clark's email clarifying the Mayor was
not acting outside her authority or official capacity in using the Mayor's stationary or asking for information from
Loveland Mayor Jacki Marsh sent a letter
August 15, 2019 to Centerra asking where
"Retail Sales Fees" (RSF) collected
involuntarily from shoppers in Centerra is

During a presentation to Loveland's City
Council earlier this year, McWhinney (who
controls the "public" metro districts) denied
the Mayor's request for information on what
McWhinney has done with the millions of
dollars collected involuntarily from
shoppers in Centerra as a "Retail Sales

McWhinney attorney Alan D. Pogue has
long maintained the 2004 MFA (Master
Financing Agreement) between McWhinney
and the city allows them to keep the money
without any obligation to tell the city where
the money is going.
Johnstown Councilman's Odd Journey From Accuser to
Architect of Conflicts of Interest  
Larimer County's Most Controversial Land Use Hearing of 2018 and how one home owner and
Johnstown Councilman apparently hopes to
profit from his influence
Jownstown Councilman Kevin Lemasters, upon learning the group he helped lead to deny Coulson Excavating from
using their property in an unincorporated area of Larimer County to open a gravel pit, prevailed in getting a new
hearing, contacted Larimer County Commissioner Steve Johnson. (click on image left) to apparently prejudice Johnson's
vote ahead of the hearing.
      read our exclusive report
Johnstown Councilman
Kevin Lemasters
LovelandPolitics EXCLUSIVE
IRS Correspondence with Centerra
Loveland Mayor Jacki Marsh, tired of McWhinney ignoring her questions and her colleagues'
attempts to shut down any public discourse on Centerra, sent the IRS an email opening old
wounds.  As the Chair of the LURA (Loveland Urban Renewal Authority) Marsh contradicted
information Centerra's outside councsel used to shut down the IRS' inquiry three years ago.


  • Mayor Marsh's October 22, 2019 email to IRS
  • 3 IRS letters to Centerra Over § 103 and other issues
  • Centerra's Outside Counsel's 3 Replies
IRS's Opinion on Metro Districts like Centerra Issuing Public Debt
“A governmental unit is inherently accountable, directly or indirectly, to a general electorate. In effect, § 103 relies,
in large part, on the democratic process to ensure that subsidized bond financing is used for projects which the general
electorate considers appropriate State or local government purposes. A process that allows a private entity to
determine how the bond subsidy should be used without appropriate government safeguards cannot satisfy § 103.”
Mayor of Loveland
Jacki Marsh 10,627
Dave Clark 9,095
Kathi Wright 4,109
Council Ward 1   
Richard Ball 2,596
Robert Molloy 1,702
Lenard Larkin 1,353
Council Ward 2  
Andrea Samson 3,015
Nita Starr 3,011
Council Ward 3   
John H. Fogle 2,051
John Dixon 1,220
Elizabeth Hughes 1,142
Council Ward 4
Don Overcash 2,789
Bill Jensen 2,225
Loveland Mayor Jacki Marsh Wins Re-Election

Loveland Mayor Jacki Marsh wins handedly over McWhinney candidate and perennial Councilman
Dave Clark to serve another two years as Mayor of Loveland.  Despite Clark's campaign receiving
thousands of dollars in special interest "independent" expenditures Loveland voters chose Marsh.

Ward 1 City Council candidate Andrea Simpson holds a razor thin four vote margin of victory over
Nita Starr.  Until all ballots are counted and the election results finalized on November 27, the result
may change.  Mail-in elections rely on the voter's signature matching their voter registration card to
verify the ballot.  Voters whose ballots were rejected due to the signature not matching have another
chance to verify they did indeed sign the ballot cast in their name.