Springs' image suffers after incentives deal with USOC

When the U.S. Olympic Committee and Colorado Springs finalized an incentives agreement nearly four years ago to keep the sports organization’s headquarters in town, then-USOC board chairman Peter Ueberroth beamed.

“This is magic here,” Ueberroth declared about the community at the time.

As a result of the agreement, the USOC now enjoys offices in a new downtown building; several Olympic-related sports groups have space in a remodeled building elsewhere downtown; and the Olympic Training Center in the Springs is getting millions in upgrades.

But when it comes to the city, the magic became more of a disappearing act. Sure, the city retained a signature institution — an internationally known sports organization with hundreds of employees. Yet, there’s little doubt the Springs’ image took a beating.

Financial and legal problems plagued the deal early on, and critics blasted city officials as incompetent. Former Mayor Lionel Rivera was accused of unethical conduct for his role in the deal, although a city panel cleared him.

Last year, the city’s chief financial officer said she was fired, in part, for reporting financial improprieties related to the deal. Her ouster is under investigation.

Developer Ray Marshall and his LandCo Equity Partners were chosen by the city and USOC to provide key elements of the incentives package. LandCo couldn’t deliver, sending the deal into a tailspin; in 2009, the City Council OK’d a revised agreement without LandCo.

Marshall and a partner were later indicted on several securities fraud, theft and racketeering charges unrelated to the USOC deal. They’re awaiting trial.

On Feb. 3, Marshall was arrested — this time on theft and racketeering charges that allege he stole more than $1 million that was part of the USOC deal. He faces up to 36 years in prison.

In a special report, The Gazette looks back at key developments and players of the USOC deal — and where things stand now.