Loveland URA approves Ernst & Young audit contract after 7-5 split

The Loveland Urban Renewal Authority voted to approve a professional services agreement with Ernst & Young LLP to conduct an audit, including a forensic component, after a divided deliberation that ended in a 7-5 roll-call vote.

Commissioner Marsh framed the measure as a fiscal necessity tied to long-term obligations, saying the authority faces significant debt and that tax-increment financing and a 1.25% public improvement fee will stop diverting funds after 2029. Marsh asked what public benefit justified nearly $5.9 million spent on Parcel 206, which remains a parking lot, and said residents need clarity on how public money was spent.

The question of scope and process split the board. Commissioner Samson said the board was rushing into a $250,000 contract without adequate procedure or stakeholder engagement and warned that the scope documents arrived less than 24 hours before a vote. "I'm not ready to write a blank check to this organization," Samson said, adding bluntly, "Nah bro. This is sus. No cap." Commissioner Olsen, identifying himself as a retired CPA, questioned the deliverables and whether the engagement would amount to a ‘‘fishing expedition.’'

Commissioner Black defended the audit request as a legitimate public demand and a fiduciary duty, saying the public and some commissioners have spent months compiling information and deserve a full accounting. "This is my fiduciary duty," Black said, and added that proponents had followed processes. Commissioner Malloy similarly emphasized fiduciary responsibility to taxpayers and said the audit is necessary to understand the city's long-term exposure.

Commissioner Foley pushed back on critics by listing public improvements he said resulted from redevelopment projects, including roads, sewer, a high school, a level 1 trauma center and veterans housing, and argued those investments broaden the tax base. Commissioner McFall warned that ambiguous contract language increases legal risk and urged clearer, less ambiguous scope language.

A motion to adopt "resolution number R-one 100 and fourteen-two 24 of the Board of Commissioners of the Loveland Urban Renewal Authority approving a professional services agreement between the Loveland Urban Renewal Authority and Ernst and Young LLP" was read and put to a roll-call vote. The recorded votes as read were: Macias — No; Mallow — Yes; Marsh — Yes; McFall — No; Olsen — No; Lake Kovach — Yes; Sampson — No; Shattuck McNally — Yes; Krening — Yes; Molloy — Yes; Foley — No. The chair announced a tally of 7 yes and 5 no; the resolution passed.

The board did not record a mover or seconder for the motion in the transcript. The approved agreement was described in the meeting as a professional services contract for audit work; cost and specific deliverables were discussed in general terms during deliberations and a figure of $250,000 was cited as the approximate engagement cost. Commissioners raised procedural concerns and asked that future audits follow a clearer, documented process.

The board set its next meeting for Jan. 14. The chair adjourned the meeting at 7:01 p.m.

Notes: transcript spellings and numeric figures vary in places (see audit notes).