The Denver International Airport has settled a dispute for more than $180 million with a contracting company that was fired before completing a terminal renovation project.
The airport filed an agreement Friday in a bondholder disclosure system, detailing more than $55 million in final payments promised to Great Hall, on top of $128.2 million previously reported, the Denver Post reported. The agreement is dated March 13.
Mayor Michael Hancock and airport officials backed out of a $1.8 billion, 34-year public-private partnership deal with Great Hall Partners in August using a “for convenience” clause that required the payments.
The deal included a $650 million terminal renovation and then three decades of oversight over new concessions in the building, but the project was terminated amid disputes over cost overrun and delay claims filed by the contractor.
The payments included compensation to Great Hall’s lenders for money already spent on the project and for breakage costs; settlement of Great Hall’s actual costs related to its project claims; and about $38 million required by the contract to cover the return on investment Great Hall would have received over the next three decades.
“We’ve been very transparent through this process and have met every milestone,” the airport said in a statement. “This final payment means we can close the door on the past and move forward.”
Great Hall declined to comment on the settlement. The company filed claims last summer alleging the airport mismanaged the project and delayed key decisions.
The terminal renovation project is now being led by Hensel Phelps Construction. Construction resumed last week and is expected to take until at least 2024, airport CEO Kim Day said.
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