KRDO13 Investigates: The City of Colorado Springs waives potential ‘conflict of interest’ regarding data center with lobbying firm
COLORADO SPRINGS, Colo. (KRDO) -- The Colorado Springs City Council is scheduled to vote Thursday on an appeal seeking to halt a proposed data center project being developed by tech firm Raeden.
The vote follows scrutiny over a conflict-of-interest waiver granted by the municipal government to lobbying firm Brownstein Hyatt Farber Schreck, which represents both the city and the developer.
Brownstein Hyatt Farber Schreck employs former Colorado Springs Mayor John Suthers and serves as the city's lobbyist on state and federal levels. At the same time, Raeden retained the firm to assist in gaining community and government backing for the data center.
While opponents argue the lobbying setup grants the developer unfair access to city officials, municipal leaders and company executives maintain that all proper protocols were followed and no special concessions were made.
Current Colorado Springs Mayor Yemi Mobolade says the municipal government evaluates potential conflicts whenever they arise and followed established protocols in granting the waiver.
“We utilize Brownstein exclusively for state and federal lobbying efforts. To preserve the integrity of our partnership and monitor other activities, we must evaluate potential conflicts of interest, and I am pleased that Brownstein contacted us in advance,” the mayor told KRDO13 Investigates on Wednesday.
Correspondence acquired by KRDO13 Investigates between Suthers and the municipal government outlined the lobbying arrangement. In the letter, Suthers stated that Raeden requested Brownstein assist in gaining backing for the data center initiative from government and community officials.
Suthers requested the city waive any actual or perceived conflict arising from the firm representing both Colorado Springs and the developer.
Jason Green, who is listed on Raeden's website as co-founder and president, defended the company's interactions with city leaders and the lobbying firm.
“We have received zero special treatment or concessions and neither has anyone else. Regarding the possibility of a secret agreement, I am unable to make any such deal, nor do I have one,” Green said.
Green also addressed questions regarding the former mayor's role at the lobbying firm.
“If I consider whether a conflict of interest exists for Suthers regarding the other projects Brownstein handles, I view those as completely separate issues,” Green said.
Opponents of the proposed data center view the arrangement differently. Kat Gayle, a member of a group opposing the project, said that providing the developer with high-level access to local government creates a clear disadvantage for residents and community members filing appeals.
Brownstein Hyatt Farber Schreck provided a statement confirming that the firm secured the necessary conflict waivers and utilizes distinct, separate teams to handle the unique affairs of each client.
The Colorado Springs City Council is scheduled to vote Thursday on the appeal seeking to halt the data center project. Either party retains the legal right to challenge the council's ruling in district court.
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