LandCo, developer of the new U.S. Olympic Committee headquarters in Colorado Springs, filed a federal lawsuit late Friday against the city of Colorado Springs and the U.S. Olympic Committee.
The suit claims that the city and the USOC have violated LandCo Equity Partners’ civil rights by trying to alter their agreement in a way that would damage the developer.
The suit also claims the city and the USOC have failed to live up to their end of the agreement and are trying to shift more financial obligations to LandCo, even though each party was supposed to pay about half the cost.
LandCo is seeking unspecified compensation and compensatory damages.
In an attempt to keep the USOC from moving out of the city in 2007, Colorado Springs sought LandCo as a private partner to help finance upgrades to the Olympic Training Center and new USOC facilities. They signed an accord on March 31, 2008.
“”The main focus of the suit is the civil rights that were violated,” Steve Long, the attorney representing LandCo, said Friday night.
The suit states that LandCo has spent almost $20 million on the project and the city has spent $1.5 million. The city has failed to raise $20.7 million and use it to purchase the USOC headquarters as required by the contract, the suit claims.
LandCo said that city politicians and the USOC had private meetings that have led to requests to alter pre-existing agreements.
Some of these requests, the lawsuit claims, would put financial duress on LandCo. The requests include an additional $6 million to be borrowed by LandCo and changes to the USOC’s lease on a temporary office building.
If the new requirements are not met, LandCo said, the city and the USOC have threatened to remove LandCo as contractor.
