Council approves $12 million Cascade property purchase; bond funds reserved for service-center upgrades

Loveland City Council voted 8-0 on a pair of measures to buy property on Cascade Avenue for $12 million and to approve the related appropriation for the purchase.

Supporters said the purchase uses enterprise cash and growth-related revenue and is separate from a recently approved bond package. "These 2 items. The first thing we want to make sure that counsel and the citizens understand, these 2 purchases are not connected to each other in any single way," said Michael Hogan, facilities operations manager.

The ordinance enacting the supplemental 2025 appropriation for the purchase and the resolution approving the acquisition of 1515 and 1615 Cascade Avenue passed on second reading and by resolution, respectively. Council approved the ordinance (Ordinance No. 6776) and then Resolution R-47-2025, each by an 8-0 roll-call vote.

Why it matters: City staff said the Cascade building provides warehouse and shop space needed for long-term utilities operations and will reduce near-term space constraints. Sharon (last name not provided), a utilities representative, told council, "the funds from that bond issue are not going to the $12,000,000" purchase and that bond proceeds instead fund planned service-center improvements.

What the city said about funding and costs: Staff told council the $12 million purchase price would be paid in cash from existing enterprise fund balances (water, wastewater, electric) and growth-related revenue. City staff and the packet memo clarified that the approximately $18.7 million in recently authorized bond proceeds are earmarked for renovations and system upgrades at the existing service center — including restroom replacements, fire suppression, HVAC and shop safety work — not for the property acquisition.

Council and public reaction: Council members questioned whether operating and maintenance (O&M) costs associated with the new property would hit the general fund; staff said O&M is expected to be managed through the utilities (enterprise) funds and not the general fund. A public commenter asked for more transparency on bond spending and the timing of the related projects.

Next steps: Staff said more detailed planning for how operations would be located between facilities will occur in coming months, including how shop space and safety improvements align with the newly purchased building. The city has closed the purchase process by resolving the appropriation and purchase resolution; implementation and facility renovation planning will follow.

Sources: Council votes on Ordinance No. 6776 and Resolution R-47-2025; staff presentations and packet memos presented during the Loveland City Council regular meeting.