Loveland council approves downtown appropriation, splits vote on Millennium plan; annexes Schmeer Farm for grocery site

Loveland City Council met in a hybrid session and took several major funding and land‑use actions. Councilors voted to adopt a supplemental appropriation tied to the Heart Improvement Plan (the “Hip Street” revitalization) and to approve zoning and a General Development Plan amendment for the Millennium Addition / Centerra South project. Separately the council unanimously approved annexation and conventional zoning for the Schmeer Farm First Addition, clearing the way for a grocer‑anchored commercial development at the I‑25/US‑34 interchange.

Why it matters: The Hip Street vote and the Millennium decisions determine how the city will pay for or allow large downtown and east‑side projects that shape traffic, utilities and long‑term tax flows. The Schmeer annexation is aimed at bringing a grocery store to the city’s east side and requires coordination on sewer and regional road improvements.

Hip Street appropriation The council adopted on second reading Ordinance No. 6757, a supplemental budget and appropriation for the Heart Improvement Plan (Hip Street) revitalization project. City staff and the DDA told council the city issued approximately $12 million in certificates/lease debt to fund the project; staff reported estimated annual debt service of roughly $830,000–$840,000 (the packet had programmed $850,000 as a conservative figure) and a total repayment estimate of about $20.7 million. The roll call on second reading recorded six votes in favor and two opposed; the ordinance passed.

Councilors asked for and staff committed to provide the final interest rate and the exact annual payment schedule to council after the meeting; staff said the true interest rate was closer to 4%–5% and that the DDA/TIF fund — not the city general fund — will be the primary repayment source so long as dedicated TIF coverage remains available. Staff emphasized that the project’s debt service is structured as annual appropriations tied to a financing vehicle and that second‑reading adoption was required to avoid construction delays.

Millennium / Centerra South: zoning approved, vesting extension rejected On a separately noticed quasi‑judicial item, the council split a large ordinance into two votes so it could consider (A) amendments to zoning and the Millennium General Development Plan (GDP) that allocate additional residential capacity to the Centerra South mixed‑use area and (B) a proposed Fourth Amendment to an annexation and development agreement that would extend vested property rights for a 20‑year period over a large portion of Parcel B.

- The zoning/GDP amendment (the portion that increases residential capacity for the Centerra South parcel) passed on the motion to approve the ordinance section covering those changes: the vote was 5 in favor, 3 opposed. - A separate motion to postpone consideration of the 20‑year vesting extension (asking staff to present a detailed, parcel‑level list of what the 20‑year vesting would protect) failed on a 3–5 vote, so council proceeded to vote on the full vesting language as presented. Council ultimately approved the ordinance section on the zoning/GDP amendment but did not approve the separate request to limit or delay the broader vesting question; the record shows the council had deep debate over vesting because it would lock development standards for a long period and could limit future regulatory options.

Speakers and issues raised included transportation capacity on US‑34, the need for affordable and for‑sale housing, and how future traffic and school impacts will be phased and mitigated. Staff said the traffic studies show short‑term intersections can function with the committed improvements but warned long‑term buildout increases daily traffic substantially and noted regional connections (Sculptor Drive, Boyd Lake Avenue extensions, and the potential County Road 20E connection) will be needed as growth continues. Councilors pressed for clearer staging and mitigation commitments and for a clearer accounting of where the 500 units reserved in another parcel could be built, given mixed‑use village centers do not carry fixed residential caps.

Schmeer Farm annexation and zoning (King Soopers site) Council unanimously adopted Resolution R‑17‑2025 annexing the Schmeer farm property and approved first‑reading ordinances to (1) annex the property formally (Ord. No. 6758, first reading) and (2) apply conventional business and developing‑resource zones (Ord. No. 6759, first reading). The council‑recorded vote on each first reading was 8‑0.

The approvals set a 30‑acre commercial parcel for a grocery‑park concept anchored by a specialty grocer (applicant Evergreen indicated King Soopers had signed on as the anchor) and left the remaining roughly 90 acres in a developing‑resource zone intended to preserve the family farm operations and farm buildings. As part of the annexation staff identified required infrastructure items: a sewer lift station (to serve both Sentara South and Schmeer), off‑site road improvements adjacent to US‑34 (acceleration/deceleration and auxiliary turn lanes), and new local road connections to serve the site. Transportation staff and the applicant described a schedule of improvements: the site developer will build phase‑1 improvements (including Rocky Mountain Avenue and required 34 turn lanes) while contributions toward a long‑term County Road 20E connection and larger US‑34 corridor improvements were discussed as future or proportional contributions tied to the district financing and future development triggers.

Applicant and staff discussion: timing and conditions The developer and the Schmeer family asked for limited revisions to the draft annexation conditions that define who pays for future corridor work (notably the County Road 20E connection) and how wastewater/lift‑station costs will be reimbursed. City staff replied that the currently drafted conditions are written to protect the city (using the city’s standard code language and owner‑based obligations), and that referencing a Metropolitan District that does not yet exist creates enforcement complexity. The applicant responded that the annexation, the Metro District service plan and the grocery deal are intended to be heard together on the council calendar and urged the council to approve the annexation and zoning while staff and the applicant finalize a precise schedule and formula for future contributions.

Council and staff agreed to continue working in the two weeks before the second‑reading hearings to finalize condition language; council voted to proceed with the annexation and zoning first readings while reserving the Metro District/service‑plan action and final condition text for the second‑reading meeting so the financing and timing pieces can be aligned.

Votes at a glance - Amendment to Council Rules (Councilor Sampson): Motion to change order so public comment occurs immediately after staff/applicant presentation and before council questions/debate — PASSED (6–2). This is a rules/process change for council meetings and will take effect according to the council rules (next meeting unless supermajority specified otherwise). - Ordinance No. 6757 (Hip Street appropriation, 2nd reading) — PASSED (6–2). Staff reported ~$12,000,000 debt issued; projected annual debt service ~$830k–$840k; total projected repayment ~$20.7M; interest rate nearer 4%–5% (final numbers to be provided by staff). - Ordinance No. 6756 (Millennium Addition / Centerra South GDP/zoning) — zoning/GDP amendment vote PASSED (5–3). A related motion to postpone/clarify a proposed 20‑year vesting extension failed (3–5); council debated but ultimately proceeded with approved zoning language while concerns about long vesting periods were raised by several councilors. - Resolution R‑17‑2025 (Schmeer Farm annexation) and Ordinances Nos. 6758/6759 (annexation and conventional zoning, first reading) — ADOPTED/APPROVED on first reading (8–0). City and applicant will finalize annexation conditions and Metro District/service‑plan financing language before second reading.

What’s next Staff and applicants agreed to continue negotiations over precise annexation conditions, lift‑station cost‑share language, and the timing/formula for a County Road 20E contribution. The annexation/zoning package and the Metro District service plan were scheduled for second‑reading consideration on the next regular meeting agenda; staff committed to provide final financing numbers and the exact debt service schedule for Hip Street before the second reading.

Ending note The meeting included extensive public comment on homelessness, downtown investments and the timing of major projects; several residents urged more affordable housing and better planning for traffic and for services that support people experiencing homelessness. Councilors repeatedly returned to the theme that large, multi‑year projects require both short‑term fixes (utility and intersection work) and multi‑jurisdictional, long‑range planning across the US‑34 corridor.

Speakers quoted in text were Mayor Ashley Marsh; Councilors (Black, Olsen, Sampson, McFall, Foley, Malo, Lakkovich, Mallow); City staff Troy Bliss (planning), Nicole Hahn (public works), Randy (transportation engineer); City Attorney (city attorney); developers Tyler Carlson (Evergreen) and attorney Brad (representing the Schmeer family); and several public commenters including Jeff Fenice (Loveland Housing Authority).