DIA Makes Final Contract Termination Payment For Great Hall Project
DENVER (CBS4) - Denver International Airport has finalized all remaining payments to its former developer, Great Hall Partners. The payment was part of the termination of Great Hall Partners' contract, which totaled $55.5 million.
The Great Hall redevelopment stalled out last year after Denver fired Great Hall partners after months of bickering over potential cost overruns, change orders and delays. At one point, GHP estimated the project would be $310 million over the $650 million budget and at least three years behind schedule. Mayor Michael Hancock fired the developer in August.
In February, Denver City Council approved a new contract for Hensel Phelps to lead the job. Construction was scheduled to begin in March with a completion date in 2024 - three years behind the original completion date. CBS4 has reached out to the Hensel Phelps to see if construction will be impacted by the coronavirus outbreak.
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Following termination of Great Hall Partners, DIA was obligated to reimburse the developer for its equity investment, work done to date and work performed during the transition of the project to the airport. Officials at DIA said transition and contract breakage costs are typical when a construction contract is terminated for convenience.
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DIA did not pay any termination penalties. The $55.5 million also settles the $290 million in claims filed by Great Hall Partners.This amount is in addition to the $128.1 million previously paid by DEN to Great Hall Partners announced in December 2019.
DEN has reimbursed Great Hall Partners a total of $183.6 million, which is within the range of $170 million to $210 million DEN announced following termination. All obligations and disputes (financial and otherwise) with the former developer are now resolved.
