Loveland Urban Renewal Authority approves $250,000 Ernst & Young audit after divided vote

The Loveland Urban Renewal Authority voted to approve a $250,000 professional services agreement with Ernst & Young LLP to conduct an audit of redevelopment finances after a divided roll-call vote.

The motion to adopt resolution R-1100-1424 — described in the meeting record as approving a professional services agreement between the authority and Ernst & Young LLP — passed by a vote the chair announced as seven yes, five no. The board recorded individual votes during roll call before the chair declared the resolution passed.

Commissioners debated whether the authority had followed appropriate procedures and what the audit should produce. Commissioner Samson objected to approving the contract without an established procedure and questioned paying $250,000 before defining clear deliverables. "We haven't followed a process or procedure of any kind," Samson said, adding the board had not engaged subjects of the audit and that the proposal felt rushed: "Nah bro. This is sus. No cap."

Commissioner Olsen, a retired CPA, said the authority has met required audits under the master financing agreement (MFA) when applicable but raised technical concerns about materiality, reasonable assurance and the clarity of deliverables. Olsen said the proposed scope included statements about "preliminary recommendations" and asked what specific remedies the authority would seek if problems were found.

Commissioner Marsh framed the debate around long-term debt and the end of diverted funding. Marsh said the tax-increment financing (TIF) and public improvement fees that help repay redevelopment debt will end in 2029, and urged the board to ensure taxpayers understand historical spending and future obligations. Marsh cited what he described as about $5.9 million spent on a development parcel (Parcel 206) that remains a parking lot and raised broader questions about public benefit.

Commissioner Black said the audit responds to sustained public concern and is part of the board's fiduciary duty, describing calls for scrutiny as legitimate. "People do not trust or have faith in ... how they're spending their money," she said, and accused critics of "gaslighting" the public by dismissing those concerns.

Commissioner Malloy also framed the audit as a fiduciary responsibility to confirm whether public funds were spent appropriately and said he supported the contract. Commissioner Foley highlighted public infrastructure and services the redevelopment has supported — roads, sewer and water improvements, High Plains School, a level-1 trauma center, the fire department and veterans housing — and said such projects produce public benefit and regional economic activity.

The record includes disagreement about whether prior audits satisfied requirements and whether this forensic-style engagement is the right next step. Several commissioners said they support an audit in principle but sought clearer procedures, deliverables and limits on scope before committing funds.

After the vote the chair closed the meeting, noting no items removed from the consent agenda, that there were no additional reports, and setting the next meeting for Jan. 14. The meeting was adjourned at 7:01 p.m.

Votes at a glance: The chair announced the tally as seven yes, five no; the roll-call sequence recorded individual yes/no responses before the chair declared passage.