Loveland council approves downtown right-of-way encroachment permit fees

Loveland City Council voted Tuesday, 7-2, to approve Resolution R-39-2026, adding a new fee schedule for revocable right-of-way encroachment permits. The measure creates application and annual renewal fees for private features that extend into public space, including patios, awnings, balconies, railings and similar structures in the downtown area.

The resolution takes effect immediately and establishes a two-tier system tied to the size and complexity of an encroachment. Under the new schedule, Tier 1 minor encroachments will carry a $250 application fee and a $75 annual renewal and inspection fee, while Tier 2 major encroachments will carry a $500 application fee and a $150 annual renewal and inspection fee. Existing permit holders will not pay the initial application fee and are set to begin annual inspections and renewal fees in 2027.

The item was pulled from the consent agenda after Mayor Pro Tem Andrea Samson asked for a brief presentation so the public could better understand it, saying the matter should be "put ... out in the light." Mayor Patrick McFall also said he planned to pull Item 4.7.

During council discussion, Samson questioned whether the $150 annual fee for Tier 2 encroachments would be too burdensome for small businesses, especially for items such as awnings. She said downtown businesses already face slim margins and have been through major disruption from construction. A staff member said the city could adjust the fee structure if council wanted, but recommended keeping the proposed rates because larger or structurally affixed encroachments require more oversight and the fees are in line with surrounding communities.

Staff said the annual inspections are intended to bring revocable encroachment permits in line with other right-of-way permitting by checking safety, maintenance and insurance compliance. For major encroachments, staff said the process would also include periodic structural review. Staff also told council the fees were based on cost recovery and comparisons with other communities, citing examples ranging from about $90 in Cheyenne to much higher charges in Boulder and Denver.

Council also discussed liability and the use of public space for private business purposes. A staff member said permit holders must list the city as an additional insured party, and said the program is meant to make sure businesses using public right-of-way for profit do so under a clearer inspection and compliance system.

City staff had recommended adoption of the resolution, saying Loveland has allowed revocable right-of-way permits since 2011 but historically did not charge application or renewal fees or conduct regular inspections. The staff report said the change is intended to better align Loveland with surrounding communities and best practices while improving safety, reducing liability and creating a more consistent downtown public realm. The Downtown Development Authority board previously gave the proposal unanimous support.