USOC accepts city's incentives offer

In what local officials called a momentous day for Colorado Springs, the U.S. Olympic Committee agreed Monday to keep its headquarters in the city for at least another 25 years.

The decision, announced by USOC board Chairman Peter Ueberroth, culminated a seven-month effort by community leaders to retain what they called a crown jewel - a prestigious, internationally known organization that employs 330 people locally, pumps about $341 million annually into the local economy and enhances other industries such as tourism and retail.

"I'm pleased to announce that Colorado Springs became a home 30 years ago, and will stay as the home for the next 25 years for sure," Ueberroth said during a Monday afternoon news conference at the USOC's Boulder Street offices. His comment was followed by rousing applause from dozens of city, business and civic officials.

The USOC said in October that it was evaluating proposals to move its headquarters out of the Springs.

The USOC left New York in 1978. A year earlier, the USOC created the Olympic Training Center here, which 10,000 athletes visit annually. The complex sits on 34 acres at Boulder Street and Union Boulevard.

The USOC talked to "probably 10 cities very seriously" about moving, said James Didion, former chairman of national real estate firm CB Richard Ellis and who served as a USOC consultant. Didion declined to identify the cities, although Chicago officials acknowledged they were in the hunt.

The news conference came 1½ hours after City Council members voted 7-1 in a special session to approve a $53 million incentives package for the USOC.

Chief among the incentives: 90,000 square feet of free office space for the USOC in a new, six-story downtown building at Colorado Avenue and Tejon Street. Moving the headquarters downtown will allow more space for athletes at the training center.

Another 40,000 square feet of free office space will be provided for several national governing bodies in a remodeled Colorado Springs Utilities building a few blocks to the west.

The office space is being made available under a complex lease-purchase deal with the city; at the end of 25 years, the USOC would own both buildings.

Also, the USOC's training center will receive a major overhaul, including building 158 new housing units for married and single athletes, expanding the cafeteria, renovating the visitor's center and creating a new Union Boulevard entrance.

The incentives were offered by city, county and state officials, the Springs-based El Pomar Foundation and local real estate company LandCo Equity Partners, which will renovate the downtown office building for the USOC and fund the training center upgrades.

LandCo chairman Ray Marshall said the USOC's presence downtown will boost the value of his other nearby properties. He's also negotiating with the USOC to turn the ground floor of the headquarters building into an Olympic-themed entertainment venue.

Ueberroth said the city's offer wasn't the bottom line in the USOC's decision.

The desire by USOC employees to live in the Springs, the organization's goal to remain close to athletes, Colorado Springs' quality of life and the leadership displayed by public and private officials in addressing the USOC's needs all were major factors, he said.

"We had some other very compelling stories and some larger numbers, but it's not about numbers," Ueberroth said after the news conference. "It's about how the three parties (the USOC, and the public and private sectors) work together. This is magic here. If Colorado Springs was a public company, I'd want to buy stock."

After Ueberroth announced the USOC board's decision to remain in the Springs, he, Colorado Springs Mayor Lionel Rivera and Marshall passed around and signed the agreement that spells out the incentives package.

"This truly is, to me, a landmark day for the city of Colorado Springs," Rivera said at the council meeting. "It's an investment in the future of Colorado Springs. It's going to make downtown even more exciting than it ever has been before."

Most of the more than 100 people at Monday's meeting supported the council's decision, including business and sports groups.

Mike Kazmierski, president of the Colorado Springs Economic Development Corp., said the combined efforts by city and business officials was "probably the most significant retention initiative" since community leaders worked to prevent Fort Carson's closing in the early 1990s.

Councilman Darryl Glenn cast the lone vote against the incentives package, saying the council's decision to borrow money for the deal should go before voters. At current interest rates, the city will pay as much as $1.7 million annually over 25 years for the space.

Rivera voted for the package along with Vice Mayor Larry Small and council members Tom Gallagher, Jerry Heimlicher, Scott Hente, Jan Martin and Margaret Radford. Randy Purvis was absent.

The council also heard from resident Jeannie O'Donnell, who said she supported the USOC but questioned if the incentives were too rich when the city is wrestling with budget woes.

LIVE BLOG FROM CITY COUNCIL MEETING, by Gazette reporter Frank Schwab:

2:13 Former Olympic wrestler Jason Gleasman, who gave a passionate and emotional speech during the public comment portion of the meeting, said he was thrilled the agreement passed and is proud the USOC will stay in the Springs.

"I understand that people are concerned but this is something in my mind that is a slam dunk," said Gleasman, who works in real estate in Colorado Springs.

1:55 It's official - the agreement passed by a 7-1 vote to long applause. Mayor Rivera called this a "landmark day" for Colorado Springs.

1:53 Mayor Rivera officially cast a yes vote for the agreement. It appears the final vote will be 7-1.

1:52 Glenn said he won't vote yes for the agreement. He thinks it should be ratified by a public vote, although he understands it will be sent through by a strong majority.

1:50 Speeches from the council continue. Scott Hente is the sixth of eight members to speak in support. There isn't any dissention among the council so far.

1:47 City Councilwoman Margaret Radford made a motion to vote. She then made a speech about making history, which was met with applause. The agreement obviously seems very close to being official.

1:44 City Councilman Jerry Heimlicher addressed O'Donnell's concerns about the "seet deal" the USOC is getting.

"I don't consider this a giveaway, I consider it an investment," Heimlicher said.

Councilman Tom Gallagher is also in favor, said he cast his vote 10 minutes ago and suggested the council vote now.

1:39 One interesting point by Glenn: What if LandCo, the real estate company working with the city, is unable to pay for all of its end of the agreement?

Anderson said the city won't have to pay any more, for the buildings or OTC improvements, if LandCo defaults. The city could try to sell more certificates of participation. However, Anderson said the city has done a lot of due diligence and the financing is in place. But the city will have to give no more than $27 million regardless.

"The city is not obligated to step in," Anderson said.

1:33 Mike Anderson is explaining some of the financial details for City Councilman Darryl Glenn at Glenn's request. It is a complicated issue that has been covered extensively by The Gazette, and earlier Anderson said it has taken some effort to simplify it.

"In financial speak, it's a pretzel," Anderson said. "But we tried to keep it simple so the public could understand it."

The public, at least most of those in this room, don't seem to have a problem with the $53 million commitment.

1:28 El Paso County commissioner Sallie Clark is also speaking in favor of the USOC incentives package. Most of the supporting comments have drawn upon a few themes: the revenue the USOC gives the city, the jobs it provides and the sense of pride of having the USOC in the Springs.

"It's that trickle-down impact we see," Clark said.

Clark also said that she hopes having the USOC's main building downtown could help retail in that area.

1:24 A female resident is arguing against more big buildings going up downtown, and she is concerned the Springs is becoming too much like a big city, with too much cement. But again, most of the comments have been in total support of the agreement.

1:22 After a second statement of support, downtown resident Jeannie O'Donnell gave poignant comments on the other side. She said she enjoys that the USOC is in Colorado Springs, but questioned the agreement and wondered about the USOC's responsibility in the deal. "It seems like it's an awfully sweet deal," she said. "Very sweet."

She compared it to giving her children money just to stay in town. She also wondered about other projects that needed money. She also seemed put off by the USOC's demands.

"If we don't give them the store, or the city, they're going to take their ball and go somewhere else."

O'Donnell's comments were met with only a smattering of applause. It's obvious this is a pro-agreement crowd.

1:14 The first public statement was in support of the agreement, on behalf of the Colorado Springs Chamber of Commerce. It called the agreement a "monumental victory for the Pikes peak region." The statement was met with cheers.

1:05 Anderson just posted a document that spells out the impact the USOC has on Colorado Springs. He claims the USOC accounts for $8.5 million annually in revenue, including 3,480 jobs.

12:57 Assistant City Manager Mike Anderson is outlining the $53 million project. He said moving the USOC offices was needed, and it will "help improve performance of U.S. Olympic athletes." The Olympic Training Center will benefit as well.

12:52 Mayor Rivera has started the meeting and outlined the process - after a presentation is made, people can speak in favor of or against the agreement. There won't be active debate with the Council, Rivera said, but everyone will speak and the Council will respond afterwards. That will help the meeting move along more quickly, Rivera said.

12:47 Mayor Lionel Rivera is here and the rest of the City Council is filing in. The stream of people coming in continues as well. Almost all of the seats in the chambers are taken with plenty of people standing on the walls. By the looks of it, there could be plenty of discussion on the USOC issue to come.

12:40 About 70 people are in attendance at City Council Chambers for the meeting to discuss the USOC incentives package, and a few television cameras. City Councilwoman Margaret Radford expressed some nerves as she was coming in - it's not every day a $53 million agreement is discussed.