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COLORADO SPRINGS, COLO. -- Attorneys for Colorado Springs are officially asking a federal court to dismiss the lawsuit filed against the city by the company overseeing the construction of the new U.S. Olympic Committee (USOC) Headquarters.

In March 2008, the three parties entered into an agreement intended to keep the USOC in the Springs.

The contract laid out plans to build two new office buildings for the USOC downtown and to complete millions in upgrades to the Olympic Training Center.

That plan officially fell apart when LandCo sued both the city and the USOC in March 2009.

Since LandCo filed that lawsuit, company officials have resolved their disagreements with the USOC, but not the City of Colorado Springs.

Thursday marked the city's deadline to respond. It did that by requesting the federal courts  to drop the case all together.

The March lawsuit accuses Colorado Springs of breaking its promises and violating LandCo's civil rights, forcing the company to spend millions with almost no compensation.

The city is now asking federal court to drop that suit for two reasons: 1) because companies don't have civil rights, and 2) because complaints regarding a breach of contract belong in a state court.

Meanwhile, the Colorado Springs Business Journal (CSBJ) is reporting that the city and LandCo are already nearing a new agreement. According to CSBJ, the information comes from a high ranking source with the USOC.

Under the new development agreement, the city will obtain permanent financing for the two downtown buildings.

LandCo will keep ownership of a portion of the new headquarters building on South Tejon, and the USOC will move into the new headquarters.

Throughout these negotiations, the general contractor completing the head uarters building has been working tirelessly.

"It's been very difficult. We've numerous times had several different option or proposals we are constantly evaluating and no clear direction where we're headed," said Jim Johnson, president and C.E.O. of G.E. Johnson Construction.

G.E. Johnson Construction is actually owed close to $4 million for work it has done.

"It's a lot of money and our subcontractors have been very good about understanding that as well. It is a concern but it's something we believe will be resolved," Johnson said.

Johnson said a new agreement would be a relief for his company.

All parties continue to say they are committed to finalizing a new agreement that would keep the USOC in the Springs for the next 25 years.