The Loveland City Council recently voted to restore planning and financial agreements with Centerra South project developer McWhinney Real Estate Services, Inc.
The council voted 7-2 to reverse course on previous action that rejected approval of the project.
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The 140-acre site is in the early stages of development. Plans call for the creation of a Whole Foods Market along with a new location for the Children's Museum of Northern Colorado and about 1,000 residential units.
BizWest editor and publisher Chris Wood joined KUNC host Michael Lyle Monday to discuss why the project continues to be marred in controversy.
"It's been controversial largely because it includes an urban renewal district through which future tax revenues can be used to pay for infrastructure, such as roads," said Wood. "Both the urban renewal district and a related financing agreement were passed last May by the Loveland City Council. That was over the objections of Mayor Jacki Marsh, who didn't believe that the project complied with state law in terms of notices required for the vote and due to the fact that (it) didn't include agricultural land."
McWhinney sued Loveland last year for a breach of contract. They argued that the council's action and rescinding of those agreements was both illegal and unconstitutional.
Wood said a Larimer County District Court judge vacated a pair of trial dates that were scheduled this week on Thursday and Friday to hear the case. Both sides are in settlement discussions.
"We don't really know what a settlement might look like," said Wood. "It's also unclear whether the parties would agree to any changes in the terms of the agreements as part of a settlement."
Wood said a decision in that case is expected sometime in March.
