August 9, 2007
Centerra- What You Need To Know, Part 1
This is part one in the series, Centerra- What You Need To Know.
As you may have heard, the latest rumor is that Grand Station was just a dream. In fact, I heard that the whole concept was falling apart because of the trolley (and who would pay for it). Not being an old-timer in this town, I can appreciate why people would call the Centerra area, McWhinneyville. But before you blame them for all of your problems consider the positives that McWhinney has brought to our city.
While I may not agree with everything that McWhinney does, I must admit that I have become an advocate over time. My botton line is this: we all have an opinion, just make sure it's not an ignorant one.
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The following was prepared by McWhinney Enterprises.
Frequently Asked Questions
How much does it cost to build all of the public improvements at Centerra:
The total estimated contribution to costs of the public improvements in and around Centerra is $413,000,000. This includes contributions for regional improvements, such as freeway interchanges, major roadways and railroad underpasses as well as other public improvements such as parks, local streets, water and sewer lines and other utilities, landscaping, etc. This number could change over time as development plans may change to reflect then current market needs. This cost excludes interest. Like many of you who may finance the purchase of your home through a mortgage, the construction of the public improvements will be financed by loans and accordingly interest expense will also be incurred.
Where is the money coming from to pay for the cost of the public improvements and the interest on the loans?
All of the cost contributions will be paid for by funds generated on Centerra.
Specifically, the $413,000,000 of public improvements and the estimated interest are paid for by the following:
Centerra Metropolitan District - self imposed additional property taxes
and other minor taxes imposed by McWhinney $284,000,000
McWhinney funds 76,000,000
Subtotal from McWhinney and related sources 360,000,000 43%
Who receives the money?
All proceeds received under the MFA are collected by government organizations (City of Loveland, County) or not-for- profit organizations set up to collect these funds so they may be spent on public improvements in accordance with the existing public-private partnership agreement between the City of Loveland and McWhinney. At no time does McWhinney collect or obtain this money for its own use.
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What regional improvements are currently underway or planned to be underway soon?
Several major regional improvements are underway in various stages. These include:
(1) Centerra Parkway/County Road 5 - from Highway 34 to Crossroads Boulevard - currently under construction with a planned opening before yearend,
(2) Design work has commenced for improving the I-25/34 interchange. It is expected that the improvements will be completed in early 2010,
(3) Several improvements to the Crossroads Boulevard and I-25 interchange are in process, including relocating the frontage roads, which should significantly improve traffic flow through that interchange. It is estimated these improvements will be completed by the end of 2008.
(4) Also, completion of the Kendall Parkway underpass, which will connect east and west Centerra, relieving traffic on I-25, will be completed by late 2009.
Is anyone else contributing to these regional transportation improvements?
According to the agreement between the City and McWhinney, a fair contribution will be sought from others who receive benefits from the regional improvements.
How much is McWhinney putting in?
As can be seen in the schedule above, based on current projections, it is estimated that through self imposed additional property taxes and McWhinney funds, McWhinney and its affiliates will contribute $360,000,000 (43%) of the funds needed towards the total cost of the public improvements in and around Centerra
How much is the City of Loveland putting in?
As part of the MFA, the City of Loveland is not obligated to put any funds into the Centerra public improvements.
Also, the city has reduced certain fees for citizens and businesses all across Loveland as a result of new revenue obtained from Centerra.
What does the City of Loveland receive?
The City’s initial investment is $0 dollars and the City has no risk in terms of guaranteeing loans, etc. The City of Loveland expects to collect an estimated total of $255,000,000 in new sales taxes over the 25 year term of the MFA and, in addition, will not be required to build $101,000,000 of regional public improvements that it otherwise would be required to fund if the projects were built. Therefore, the total benefit during the term of the MFA is estimated to be approximately $356,000,000.
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The MFA needs to be amended to allow for additional public improvements to be made which will help facilitate the development of a very competitive, high quality mixed-use development.
What will the Grand Station local transit feature (the Trolley), cost?
All costs will be paid for with funds generated on Centerra.
The Phase One cost to build the local transit will be approximately $3.8 million. Annual maintenance is estimated to be $266,000. The Centerra Metro District, which obtains all of its revenue from Centerra will pay for and perform all maintenance.
When does the Public/Private partnership expire?
The public/private partnership runs for 25 years and expires in 2029.
For additional information, please contact Wendy Ellis at McWhinney. She can be reached at 970 962 9990 or wendye@mcwhinney.com.
In addition, based on current projections, once the MFA expires, the City of Loveland will receive approximately $29,000,000 (2007 dollars) annually from sales and other taxes being generated by the Centerra development.
Why does the MFA need to be amended?
Public improvement fees-from Centerra $179,000,000
Loveland URA property taxes-from Centerra 301,000,000
Subtotal from non-McWhinney related sources 480,000,000 57%
Total from all sources $840,000,000 100%
The City of Loveland and McWhinney/Centerra Public-Private Partnership (MFA) and Proposed Amendment
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