City to investigate oversight of USOC money

Allegations that Colorado Springs provided lax oversight of money that El Pomar Foundation gave the city to retain the U.S. Olympic Committee are now the subject of an internal investigation.

Mayor Steve Bach announced Thursday that he asked the City Attorney’s Office to commission an independent investigation on the allegations, which surfaced most recently on Friday in the arrest warrant of developer Ray Marshall. Terri Velasquez, the city's former chief finance officer, raised concerns about misuse of El Pomar funds after she was fired last year.

Marshall, chairman of LandCo Equity Partners, was involved in the first and now-defunct deal to keep the USOC from leaving Colorado Springs. Marshall is accused of theft and racketeering in connection with the alleged diversion of funds intended to pay for the USOC headquarters and two related projects.

“Oversight of funds used for the public good is a sacred trust, and I take very seriously any lack of care or diligence in managing these funds,” Bach said in a statement.

“Once the investigation is complete we will take appropriate action,” he said.

The city noted that the alleged misappropriation of funds “and concerns regarding insufficient oversight of those funds” by the city occurred before Bach took office in June.

El Pomar donated $2 million to the city in 2008 to use for renovations to buildings at 30 S. Cimino Drive and 19 N. Tejon St. as part of the city's bid to keep the USOC headquarters here.

The building on Cimino is the former Colorado Springs Utilities gas operations center and now houses some national governing bodies. The North Tejon building was used as temporary office space for the USOC. The USOC is now headquartered in a renovated building at 27 S. Tejon St.

City Attorney Chris Melcher said his office would “expeditiously conduct an independent and thorough investigation” at the mayor’s direction.

“We will begin our work immediately, and report any conclusions to the Mayor promptly upon the completion of the investigation,” he said in a statement.

On Tuesday, The Gazette asked the mayor’s Communications Office what changes, if any, the city had made given the problems that emerged regarding poor oversight of the El Pomar donation.

The Communications Office has yet to respond to that request for information.