Colorado Springs officials are serious about keeping the United States Olympic Committee from leaving the city, and the complexity of a $53 million incentive package they fashioned shows that dedication.
The committee and the Olympic Training Center are part of the city’s identity and an economic driver. Keeping it there is a wise move.
We just hope the City Council, which voted 7-1 to approve the package, has accurately gauged the community’s will to support such an effort, which anticipates a good bit of public participation.
A memorandum distributed by Colorado Springs says that in a “worst case” scenario, the city will be on the hook for $1.7 million annually for payments to fund the ambitious project. It includes 90,000 square feet of office space for the USOC, athlete housing and offices for Olympic sport governing bodies.
Officials are hoping to drum up charitable financial support for the venture and lower the city’s annual contribution.
However, city officials found themselves compelled to move forward with the deal before that additional support could be identified. That’s because the USOC was entertaining relocation offers from other cities.
Part of the complexity of the deal stems from a partnership with an outside developer, LandCo Equity Partners, a local firm. The firm is reconstructing a building it owns downtown for USOC headquarters, and it has the option to work with the USOC to develop retail or restaurant operations on lower floors.
The deal also anticipates that associated downtown redevelopment will generate additional taxes, which would help pay for the project.
Along with renovation and expansion of a downtown office building for the USOC, the package includes 158 new athlete housing units and a visitor’s center renovation.
At the end of a 25-year agreement with the city, the USOC would own the office building. If the organization were to move from the Springs during the first 15 years of the agreement, it would face severe financial penalties.
The deal shows creativity and an effort to keep the impact on city coffers to a minimum. That’s an important quality during these times of fiscal difficulty.
Colorado Springs has been home to the USOC and one of its training centers for three decades. The economic benefit to the city has been estimated to be in the hundreds of millions annually.
We’re glad the city was able to forge a deal that has satisfied the Olympic organization. We hope that in the long run, local taxpayers will find it to their liking as well.
