The same night that city council nearly doubled people’s storm water fees they also voted to grant up to $600,000 to an out-of-state nonprofit corporation called Artspace. The group builds affordable housing for low-income artists who usually work out of their subsidized space. In addition to the city money which will be used to pay for design and financial analysis studies, the group plans to do fundraising and is seeking low income tax credits from the state of Colorado (CHAFA).
Among the public input was Carol Johnson (not related to Ramey Johnson) who identified herself as a city council member from the City of Loveland. She reported the City of Loveland had a Artspace project. She stated Artspace has come back to Loveland on multiple occasions for more money beyond the initial grant.
Public input also saw Natalie Menten quote the Colorado State Constitution Article XI Section 2 (2014) which states, “Neither the state, nor any county, city, town … shall make any donation or grant to …. any corporation ……”. City Attorney Tim Cox assured the city council that the constitution does not prohibit this grant because it was not a donation per se but rather a payment to vendors for services performed for the benefit of Artspace.
Sounds like some legal hair splitting that seems ripe for a potential lawsuit. So once again the city council puts its taxpayers in legal jeopardy with some pretty questionable grant awarding.