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City terminates LandCo deal

Thu, May 21, 2009

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The withdrawal notice from the city to its erstwhile partners in the U.S. Olympic Committee headquarters deal, LandCo and the USOC itself, gives a preview of the defense that Colorado Springs will offer to the lawsuit LandCo filed against it and the USOC.

The USOC withdrew from the Economic Development Agreement last month.

The city seems to be following a simple strategy: It’s all LandCo’s fault!  Poor, gullible, misunderstood, slandered, libelled, seduced, betrayed and left at the altar – that’s us!  The city alleges that LandCo has been in breach of the ill-fated EDA for well over a year – in other words, from the moment it was signed. 

While reciting LandCo’s alleged breaches of contract, misrepresentations and multiple failures to perform, the city admits to no shortcomings and mentions none by the USOC.

Clearly, the script we’re seeing is a minor variation on that of “Heathers”, the classic mean girl movie of the 1980s.  The USOC is the alpha Heather and the city is, it hopes, another Heather – and LandCo is the spurned, ridiculed and derided Veronica Sawyer.

The Heathers just want to ditch Veronica and find a new BFF, a suitably cool girl to hang out with … but what’s Veronica going to do?  Will she just go home and cry?  Oh, nooo … watch out, Heathers!! Veronica’s got a gun!!

The USOC deal is, slowly but surely, heading for a denouement.  The city and the USOC have signalled that they won’t play nice any more.  Marshall and LandCo might be on the ropes, but they’ve still got some fight in ‘em.

Will Marshall and LandCo seek an injunction preventing the city and USOC from moving forward?  Will UMB foreclose on the half-completed headquarters building at 27 S. Tejon St.? Will LandCo file for Chapter 11 bankruptcy, and simultaneously file fresh lawsuits against the city and USOC?

LandCo, Ray – it’s your move.

And thanks, all three of you, for the free fireworks – with this kind of show, who needs Memorial Park?

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4 Comments For This Post

  1. John Whitten Says:

    Kind of sounds like the city, MayorLionel, and everybody else with mud on their hands, has decided to to say: Oops, just kidding. The bad news is that it just isn’t going to go away. The good news is that MayoirLionels political carreer may finally be over……

    The only reason Ray-Ray filed suit is to try and get some leverage in a deal where he had none.

    The accusation that there has been money diverted away from the project by LandCo (Real Estate Advisor to the Stars!!) is a new twist in this soap opera, but apparently not a new MO for LandCo: That’s part of Jack Mason’s problem with Ray-Ray in the develpment deals up north. No doubt some of those funds went for legal and PR expenses at LandCo..(Real Estate Advisor…ah, nevermind…)

    So now that everybody has finished with their respective parts in what may someday be known as the Great Colorado Springs Smoke and Mirrors Act (GCSSMA), where does this leave Jim Johnson and GEJohnson?

    The only guy with anything at stake and the only guy who did what he said he would do is going to get left holding the bag. Just one more arguement that this town may not be very business friendly.

    If nobody wants to follow up on Ron Johnson’s complaint, maybe he should call the SEC and let them investigate UBS and MayorLionel from the ‘other side’…..I bet that would be interesting….

    May sound a little strange ( nothing new for me….), but I’m kind of sad this deal might be winding down….it IS entertaining….sad, but entertaining…..like a spectacular car crash where no one is hurt……

    John Whitten

  2. John Whitten Says:

    Oh ya, and another thing: We should hope that Ray-Ray files bankruptcy. When somebody does that, there are no more secrets. A BK filing from LandCo would disclose all the assets, liabilities, and agreements associated with USOC deal…..but not necessarily Marshall’s personal situation.

    If anybody wants the most down and dirty info on this deal, Marshall and LandCo each have to file….

    UMB has the loan on that building? I thought it was some bank in Denver that is actually from Australia? Guess not…….

    Maybe MayorLionel shoud have asked for fireworks money instead…bet he would have gotten a better response..

  3. Patrice Says:

    John – I have new-found respect for you now that you have used Heathers as an anology for the USOC relationship. Keep up the good work!

  4. dick Says:

    The SEC should be invited to investigate this …