Loveland Handing Out Cash to Private Entities

The City of Loveland has a very interesting economic incentive program and some of it may come as a surprise for uninformed individuals.  Where many would expect tax rebates, permit fee waivers and CEF (capital expansion fee) reductions; Loveland’s incentives go way beyond these typical incentives.  In the written program, one can learn how they can receive “Cash incentives for new primary jobs”, “Job training dollars” and “Facade improvement grants”.  Even though there is special mention to Article XI Section 2 of the State Constitution in the City Charter Prefatory Synopsis, which one would think prohibits the City from giving money to private entities, legal precedent loopholes have given the City a way around the original intent.

Tomorrow night, Loveland City Council will receive a presentation about the Loveland Arts Economic Development Center.  This appears to be a $300,000 economic incentive program, but this one will focus on “creative sector jobs”(?).

In a rambling of what it will and won’t cost the city, the study session Cover Letter vaguely gets to the point:

“TITLE: THE LOVELAND ARTS ECONOMIC DEVELOPMENT CENTER (LAEDC)

DESCRIPTION: This is a follow up item from two Economic Development Subcommittee meetings to discuss the funding and formation of the Loveland Arts Economic Development Center in partnership with Aims Community College-Loveland.

BUDGET IMPACT: $100,000 annually for 3 years (2011-2013). The current balance in the Economic Development Incentive Fund is $736,595.00. Funding this program would not reduce the current balance, assuming funding continues at the current annual level of $350,000.

Council will be discussing the redirection of $100,000 from the annual appropriation to the City Council Economic Development Incentive Fund. The funds will be used to provide financial support for staff and programs at the LAEDC not to exceed $300,000 over three years. Council’s annual contribution to the Incentive Fund will be reduced to $250,000 annually for three years. This item is dependent upon the outcome of the November election and ballot questions 60, 61 and 101.

SUMMARY: City Council will be asked to consider financial support for the formation of the Loveland Arts Economic Development Center. The LAEDC will be responsible for developing and carrying out strategies and activities which will create, retain, and attract creative sector jobs in Loveland. Support for the Center is consistent with Objective 13.5.1 of the City of Loveland comprehensive plan adopted in 2006.”

The presentation will move way beyond the debate of the City picking financial winners and losers, but will put the debate of picking ‘artsy’ financial winners ahead of others in the City’s game of economic incentive roulette.