Concerns over the financing of the Hip Streets project dominated the Loveland City Council meeting on December 3, 2024, as council members and citizens raised alarms about the implications of the proposed leaseback deal. A key speaker highlighted the unusual nature of the financing scheme, which involves a bank association purchasing a 35-year lease on public works buildings and then renting them back to the city at a significant profit.

The speaker, who questioned the rationale behind this approach, emphasized that if the city fails to meet its rental obligations, the buildings could be leased to other parties. This raises concerns about the financial burden on taxpayers and the long-term implications of such a deal. The speaker pointed out that the city is effectively borrowing $11 million without obtaining the necessary voter approval, as mandated by the state constitution for debts extending beyond one year.

"This scheme is irrational, unethical, and dishonest," the speaker stated, urging the council to reconsider the item on the consent agenda. The speaker argued that the city should pursue borrowing methods that comply with constitutional requirements and respect taxpayers' rights.

The discussion reflects growing scrutiny over municipal financing practices in Loveland, with citizens calling for transparency and accountability in how the city manages its financial obligations. As the council continues to deliberate on the Hip Streets project, the outcome could set a precedent for future city financing initiatives.