Loveland council tables liquor and tobacco code rewrite, approves $500,000 DDA credit line and finalizes Great Western annexation

Loveland City Council on April 15 voted to postpone action on an overhaul of the city—s liquor and tobacco licensing code, approved a $500,000 supplemental appropriation to enable the Downtown Development Authority (DDA) to use a short-term line-of-credit mechanism, and adopted two annexation ordinances for the Great Western Second Addition.

The liquor and tobacco ordinance was introduced by Ashley McDonald, Loveland—s city clerk, as a single rewrite that would move tobacco licensing into Title 8 alongside alcohol rules and align local policy with recent state changes. The council instead voted to table the ordinance so staff can gather additional input from local businesses and community stakeholders.

The rewrite would have implemented state-driven changes, added new compliance and training requirements, updated renewal timelines, and moved tobacco licensing out of Title 5 into Title 8. Councilors and multiple vendors who spoke at the meeting flagged concerns about penalty language, surrender timelines and operational impacts for small retailers. After extended discussion the council voted to table the measure and direct staff to return with clearer delineation between state-required items and locally discretionary provisions.

The council approved a separate item to enact a supplemental budget appropriation to create a $500,000 line-of-credit mechanism for the Downtown Development Authority projects and programs. Chief Financial Officer Brian Waldes and Sean Hawkins of the Loveland Downtown District explained the line is a short-term debt mechanism required by Colorado law to allow the DDA to disburse TIF-funded grants and reimbursements (for example, facade grants, event contracts and seasonal plantings). City and DDA staff said the new line-of-credit amount was reduced from $1 million last year to $500,000, and that the city is working with Wells Fargo to establish a permanent external credit facility in the coming months.

The council also approved on second reading two ordinances on the consent agenda: Ordinance No. 6763, approving annexation of property to be known as Great Western Second Addition; and Ordinance No. 6764, amending zoning regulations for that addition. Both passed on the consent roll call.

Votes at a glance

- Ordinance No. 6765 (first reading) 9: Ordinance to repeal and relocate chapter 5.45 into Title 8 and update Title 8 for alcohol beverages and tobacco products. Action: Introduced and moved for first reading; ultimately tabled for future consideration pending broader community input. Final motion to table passed 8-0. Motion recorded following presentation by Ashley McDonald, Adriana Mazur and Sterling Wilson.

- Ordinance No. 6766: Supplemental budget appropriation of $500,000 to the DDA project fund to finance/refinance DDA projects and programs. Action: Approved on first reading (budget adoption). Roll call: Councilors Mike Kovach (yes), Suanti (yes), Olsen (yes), Marsh (yes), Black (yes), Malo (yes), Sampson (yes); Foley (no). Final tally 7-1 in favor.

- Ordinance Nos. 6763 and 6764 (consent agenda): Annexation and zoning for Great Western Second Addition. Action: Adopted (second reading) on consent. Roll call recorded as 8-0 in favor.

Why it matters

The liquor and tobacco code changes respond to recent state law (Senate Bill 24-231) and would centralize local rules for alcohol and tobacco under one chapter, add reporting and training requirements, and change renewal timing. Business owners told council the draft needs clearer penalty language, reasonable grace periods and practical implementation details before adoption. By tabling the item the council preserved time to solicit and incorporate that feedback.

The DDA appropriation is an administrative mechanism that enables the DDA to use TIF funds (Fund 650) while complying with Colorado statutory limits on how redevelopment authorities may expend public dollars. City staff said the mechanism is standard across Colorado and is temporary pending a permanent bank line from Wells Fargo. The DDA—s TIF fund balance was reported at about $4.5 million (pre-audit), and staff said the line of credit does not create new program spending beyond amounts already budgeted.

What council said

Ashley McDonald, the city clerk, told council the objective was to improve safety, streamline licensing, and align local code with state rules. Sterling Wilson and Adriana Mazur outlined proposed changes including disturbance-reporting posters, alcohol server training, expanded tasting permits for off-premise retailers and updated tobacco compliance checks and renewal timing.

Brian Waldes, the city—s chief financial officer, said the DDA line-of-credit mechanism is intended to meet statutory requirements and to be temporary while the DDA secures a bank line.

Looking ahead

City staff will return with a revised liquor and tobacco code after a period of additional outreach to retailers and community partners. The DDA appropriation will be implemented as a revolving credit mechanism; staff said they expect to convert to a permanent bank facility within several months.

Sources: Presentation and discussion at the Loveland City Council regular meeting on April 15, 2025; city staff and DDA presenters.