Loveland Urban Renewal Authority approves Ernst & Young forensic audit, 7–5, after heated deliberations

The Loveland Urban Renewal Authority on a 7–5 vote approved a $250,000 professional services agreement with Ernst & Young LLP to perform a forensic-style review of URA-related financial matters, including transactions tied to the McWinnies and multiple development parcels.

Supporters of the contract said the scope responds to long-standing public concern about how tax-increment and related public funds were spent and is needed to clarify obligations before a key financing timeline ends in 2029. Opponents said the board rushed a complex engagement, questioned what specific deliverables would be produced and warned the contract language was ambiguous.

Why it matters: Commissioners repeatedly referenced the authority’s long-term financing arrangements and the approaching end of diverted tax revenues tied to redevelopment projects. Commissioner Marsh argued the audit is necessary to explain public spending, citing a figure he gave during debate for total related debt and noting that about $5,900,000 has been spent on Parcel 206. “We need to be able to tell them what is the public benefit to them for paying on this debt,” Marsh said.

Board debate: The meeting’s deliberations split along process and oversight lines. Commissioner Samson said he supported the concept of auditing but warned the board was “starting out with the pedal to the metal,” objecting to approving the scope less than 24 hours after it was circulated. “I’m not ready to write a blank check,” Samson said, adding later in an exchange, “Nah bro. This is sus. No cap.”

Commissioner Olsen, a retired CPA, questioned the necessity and specificity of the engagement, noting that audits required under the MFA had been completed and asking what concrete remedies or outcomes the forensic review would deliver. She cited an independent audit (Haney & Company) for the related Sentara Metropolitan District that, she said, had found the financial statements to “present fairly.”

Commissioner Black and others pushed back on critics’ framing and said the public has repeatedly asked for a deeper look. “These are legitimate concerns, not only from certain commissioners, but from our public,” Commissioner Black said. “We followed every single process.” Commissioner Malloy framed the vote as a fiduciary responsibility to taxpayers and said the city needs clarity on long-term obligations.

The motion and vote: The chair called for the motion to adopt Resolution (as read into the record) approving the professional services agreement between the Loveland Urban Renewal Authority and Ernst & Young LLP. A roll-call was taken and recorded on the transcript as follows: 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 the result: 7 yes, 5 no. The motion passed and the agreement was approved.

Deliverables and next steps: Critics said the scope document lacked clear, binding deliverables and asked whether the audit team would examine statute-of-limitations issues, potential remedies and the extent of possible recovery. Supporters said the review is the first step to answering these questions and that staff and the consultant will define and pursue next steps following the contract award.

Meeting close: With the agreement approved, the chair noted there were no removed consent items, said the next meeting is scheduled for January 14 and adjourned the session at 07:01.

(Quotes and attributions are drawn from speakers identified in the meeting record: Chair; Commissioner Samson; Commissioner Olsen; Commissioner Marsh; Commissioner Black; Commissioner Malloy; Commissioner McFall; Commissioner Foley.)