COLORADO SPRINGS, Colo.—The developer of the new downtown headquarters of the U.S. Olympic Committee is the subject of a criminal investigation, District Attorney Dan May said.
May said Wednesday that he couldn’t disclose details of the investigation into LandCo Equity Partners and its chairman, Ray Marshall. He would not say whether the investigation is related to the USOC project or to other real estate deals.
Marshall’s company issued a statement that said the investigation stems from “a few disgruntled investors” who made allegations against Marshall in connection with lawsuits they filed against him. One suit was settled last month.
“The allegations are baseless and unfounded,” LandCo said. “Neither LandCo nor its principals can comment on pending litigation other than to say they are fully cooperating with the investigation and expect to be exonerated.”
In recent months, Marshall and LandCo have been hit with liens related to the USOC project and a separate real estate deal in Monument. Also, Marshall has been sued twice by former business partners and faces a foreclosure action related to one of his real estate projects.
Vice Mayor Larry Small said he’s seen no evidence that LandCo and Marshall won’t complete their part of a $53 million incentives deal that the USOC, Marshall and the city agreed to last year with the goal of keeping the USOC’s headquarters in town.
Still, Small said he’s concerned about the various entanglements related to Marshall’s real estate and business dealings.
City Council plans a closed-door session Monday to discuss the status of the incentives deal. The parties had agreed two weeks ago to re-negotiate it.
Under the original agreement, LandCo is constructing a new USOC headquarters and remodeling another building into offices for Olympic national governing bodies. All the work is expected to be complete by July 30.
Marshall and LandCo also are supposed to make $16 million worth of improvements at the USOC’s Olympic Training Center in Colorado Springs, which will include new housing for athletes and an expanded cafeteria. That construction hasn’t started and likely won’t be finished by a Dec. 15 deadline.
In exchange for the work, the USOC had agreed to remain in Colorado Springs for 25 more years.
USOC spokesman Darryl Seibel said the USOC isn’t worried about Marshall’s ability to complete his part of the agreement.
Also under the original deal with the USOC, a city agency was to buy the top five floors of the new headquarters after selling $27.5 million in securities called certificates of participation, but the sales have been delayed because of weak financial markets.
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Information from: The Gazette,
