Loveland URA approves Ernst & Young contract for audit after heated debate over scope and cost

The Board of Commissioners of the Loveland Urban Renewal Authority voted 7-5 to approve a professional services agreement with Ernst & Young LLP to perform an audit connected to URA activities after more than an hour of deliberation over scope, cost and procedure.

The resolution — read into the record as "resolution number R-one 100 and fourteen-two 24" — authorizes the authority to enter a contract with Ernst & Young. Supporters said the audit is a necessary exercise of fiduciary oversight; opponents said the board had not established clear deliverables or followed a sufficiently deliberative procurement process before authorizing the up-to-$250,000 engagement.

Commissioner Samson objected to the pace and breadth of the proposed agreement, saying the board had received the scope of work less than 24 hours before the vote and that the arrangement risked paying for a broad, undefined inquiry. "I'm not ready to write a blank check to this organization," Commissioner Samson said, adding later in colloquial terms that "this is sus. No cap."

Commissioner Olsen, who identified himself as a retired certified public accountant, questioned what specific deliverables the forensic portion of the work would produce and whether the effort would be limited to material findings. "We've had audits," Olsen said, noting prior audits he said met the URA's Minimum Financial Assurance requirements and asking what remedy the board sought if additional issues were found.

Commissioner Marsh framed the audit as part of longer-term fiscal stewardship, warning that tax increment financing and a 1.25% public improvement fee tied to redevelopment will revert in 2029 and that the authority must understand outstanding obligations. Marsh described past spending on certain parcels — noting roughly $5.9 million on Parcel 206, which remains a parking lot — and said the public deserves clarity on the benefit of those investments. Marsh stated an overall debt figure that he characterized as roughly $202,126,000,000.

Commissioner Black said supporting the audit fulfilled a campaign promise and a fiduciary duty to residents. "This is my duty," Commissioner Black said, defending the step as a response to public concern and arguing that the authority followed process for the current contract. Commissioner Malloy likewise said the audit would help protect taxpayers and chart a path toward 2029.

Commissioner Foley listed local infrastructure the URA has supported — roads, sewer, water improvements, a trauma center, fire services and veterans housing — and said redevelopment has generated retail activity that benefits the broader community.

After the motion was read and a roll-call, the clerk announced a 7-to-5 vote in favor; the chair declared the resolution passed. The meeting adjourned at 7:01 p.m.; the chair noted the next meeting is scheduled for January 14 (year not specified).

The debate centered on three practical questions: whether the scope and deliverables for the proposed Ernst & Young engagement were sufficiently defined, whether the procurement and outreach process to affected parties had been adequate, and whether the cost was justified given prior audits and the URA’s long-term obligations. Supporters emphasized fiduciary duty and public demand; opponents emphasized procedure, contract clarity and limiting the audit’s cost and scope.