The name might be new, but the developer behind Centerra is coming to the Loveland City Council this week with a proposal built on familiar tradeoffs.
On Tuesday, the council will consider a business assistance agreement with Realberry (formerly known as McWhinney Real Estate Services) aimed at bringing Costco and about 300 jobs to east Loveland, in exchange for up to 25 years of sales tax sharing and help with construction of public improvements.
The proposal centers on Centerra’s 83-acre Parcel 504, which sits north of U.S. 34 and east of Centerra Parkway. According to terms of the proposed agreement, Realberry plans to sell around 19 acres of it to Costco for a nominal price, then throw in an 850-space parking lot, plus installation of dry utilities, landscaping and other site work, at an estimated cost of $10.6 million.
On the remaining acreage, Realberry plans to develop a mixed-use commercial center, including about 191,000 square feet of additional retail, 68,000 square feet of restaurant and bar space, and 21,000 square feet of service uses — more than 400,000 square feet in total, including the 160,000-square-foot Costco warehouse.
Once completed, the city’s economic development department projects Costco on its own would generate more than $2 million annually for the city’s general fund and more than $100 million over 25 years, even with an incentive agreement.
In addition, the development is expected to produce about $743,000 per year in property taxes, including roughly $68,000 for the city, along with an estimated $78,000 annually in fuel tax revenue and approximately $3 million in one-time city fees.
The developer is anticipating constructing approximately $22.4 million in public improvements to pull these plans off, including electric, water, sewer and storm infrastructure, curb, gutter and sidewalks, landscaping within public rights-of-way and roadway expansions, with the notable exception of Kendall Parkway.
For that and other infrastructure assistance, Realberry is turning to the city with a two-part request. The first is for a 1.25% rebate of the city’s 3% sales tax toward repayment of metro district bonds, capped at $25 million in bond proceeds and lasting no more than 25 years.
The 1.25% sales tax share would apply only to transactions on Parcel 504, which currently generates no sales tax revenue and sits within the boundaries of the original Centerra urban renewal plan. The site already carries a 1.25% public improvement fee, or PIF, under that framework.
The developer also wants the city to bear the burden of extending Kendall Parkway from Sky Pond Drive to U.S. 34, a project estimated to cost $13 million, though Realberry will contribute $2 million to the budget.
Costco is not a party to the proposed agreement, which is between the city, Realberry and the Centerra metropolitan district. However, Realberry has a letter of intent and purchase contract with the retailer, documents that are being reviewed by the city but remain confidential, according to documents attached to the agenda.
Loveland would not be the first Northern Colorado community to offer incentives to secure a Costco. In 2020, the Longmont City Council approved an economic development package for Costco valued at roughly $12.5 million that included city-funded site improvements, fee rebates and other infrastructure assistance, but no long-term tax sharing.
City staff pay increases
Tucked away on the consent agenda, the council will also vote on pay increases for its three direct reports following biannual performance reviews conducted in January.
The proposed adjustments would raise City Manager Jim Thompson’s salary by 20% to $366,000.22 annually, increase City Attorney Vince Junglas’ pay by 7% to $299,600.03, and boost the presiding municipal court judge’s compensation by 15% to $201,250.21 per year.
Each would also receive 40 hours of executive awarded leave. Proposed increases to the city’s retirement contributions for the manager and attorney will require a future Municipal Code update and additional council approval.
How to participate
The Loveland City Council will meet at 6 p.m. Tuesday in the City Council chambers at the Municipal Building, 500 E. Third St.
Comments from members of the public will be accepted in person as well as over Zoom at both meetings. Those wishing to join by Zoom can use the ID 975 3779 6504 with a passcode of 829866, according to the meeting agenda.
The meeting will be broadcast on Comcast Channel 16/880, Pulse TV channel 16 and streamed through the city’s website at lovgov.org/tv.
Tuesday’s agenda packet can be found through the Loveland City Council’s website at lovgov.org/CityCouncil or at cilovelandco.civicweb.net.
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