Developer slaps Loveland with lawsuit over repeal of urban renewal deal
It took just one week for McWhinney Real Estate Services to hold true to its threat to bring a lawsuit against the city of Loveland for unraveling a taxpayer-subsidized urban renewal project agreement.
At issue was an agreement between the city, Larimer County, and other taxing districts to partner with Chad and Troy McWhinney to develop South Centerra, a 148-acre urban renewal project that would bring new retail and housing to the area near the existing Centerra development at the junction of US Hwy 34 and Interstate 25. It used a controversial funding method known as tax increment financing (TIF).
Under the South Centerra agreement, the city would give up 1.25 percent of all sales tax revenue from retail within the development for 25 years to help with the infrastructure for the project.
However, at the November 21 regular city council meeting, a newly seated council voted to unwind all that, despite a strong warning from the developers that it would bring a breach of contract lawsuit against the city if it did so.
On Tuesday, the McWhinney’s filed two motions on behalf of their company asking for both a Temporary Restraining Order (TRO) and permanent relief from the repeal.
“The Loveland City Council purposefully disregarded the law by unilaterally attempting to rescind a validly approved urban renewal plan,” the TRO motion states. “It ignored the proper public notice and public vote requirements in an exceedingly hasty attempt to jeopardize development of a long-planned community.”
There will be a special meeting at 7 p.m., Wednesday, Nov. 29 for the sole purpose of discussing the lawsuit and hiring an outside law firm to represent Loveland.