City settles suit filed by PERA following Memorial Hospital lease

The City of Colorado Springs has agreed to pay the Colorado Public Employees’ Retirement Association (PERA) $190 million to settle a suit that stemmed from the lease of Memorial Hospital to University of Colorado Health.

University paid the city $259 million of up front money when the lease agreement went into effect in October 2012. The city says that money will be used to pay the settlement.

The city argued that it had no further obligation to PERA or employees of the city owned hospital once the lease was complete. It said it agreed to the settlement to prevent an expensive extended court battle.

The city said the settlement does not constitute any admission of liability by Memorial or the City.