The makeup of Loveland's city council has changed dramatically since the November election. That has caused some major issues for the future of the Centerra South urban renewal plan.
BizWest editor and publisher Chris Wood joined KUNC host Michael Lyle Monday to discuss and recent claims filed by Loveland-based McWhinney Real Estate Services Inc. alleging a breach of contract.
The 140-acre project is in the early stages of development. Plans call for a Whole Foods Market, a new location for the Children's Museum of Northern Colorado, and about 1,000 residential units. Wood said given the changes in the city council, McWhinney is facing a long battle trying to complete the Centerra South project.
"There was a controversy earlier this year when the company sought to have part of the project removed from an older urban renewal plan and put it into a new urban renewal district," said Wood. "This allows the project to benefit from tax increment financing, meaning part of increased tax revenues created by a development can be used to help pay for infrastructure. In this case, we're talking about $155 million in financing."
Wood said after Mayor Jacki Marsh was re-elected in November, she and three new council members spoke against the project. Marsh later proposed the council rescind the approval of both the urban renewal plan and the financing agreement made by the previous council.
Wood said McWhinney responded by filing a lawsuit in Larimer County District Court.
"(McWhinney) argues that the council's action, and rescinding those earlier agreements, is both illegal and unconstitutional," Wood said.
Wood added that last week the court denied a temporary restraining order McWhinney was seeking to consider the injunction.
