The following is not legal advice and should not be relied upon to take or refrain from taking any action.
The Seattle Space Needle image and variations of the image are federally registered trademarks owned by, guess who?, The Space Needle Corporation which, occasionally, asserts its rights in the image. The image is used as a trademark for many types of trinkets and promotional items. See <
http://tinyurl.com/b77u2j >.
Is it lawful for you to use the Space Needle image as part of a team logo? Your own attorney should make that call but I think the chips are stacked against you. Unlike other cases in which a building owner asserts trademark rights in the appearance of its building, the Space Needle serves no purpose other than as a attraction (with restaurant), visually appears the same from all angles, is particularly unique, and is famous throughout the country. I think it's quite likely that the Space Needle Corp. owns the exclusive right to use the image of the Space Needle as a trademark.
As far as you deflecting liability under the trademark "fair use" defense, that's very unlikely because you are, indeed, using the Space Needle image "as a mark" and not merely in a descriptive manner (the image certainly does not "describe" a swim team). It's never "fair" to use another's trademark as a trademark -- though it may sometimes be "fair" to use another's trademark if whatever it is that's being used as the trademark can also be used descriptively. BEST BUY, for example, is a registered trademark used and owned by electronics retailer Best Buy, Inc. while ACE BEST BUYS is a registered trademark used and owned by hardware retailer Ace Hardware Corp. -- Ace's use of "Best Buys" is fair because no one can exclusively appropriate the descriptive phrase "Best Buy" simply by using it as a trademark.
I may be completely wrong in this analysis because the Space Needle image was used for many years by the Seattle Supersonics as part of its team logo (
http://en.wikipedia.org/wiki/Seattle_SuperSonics ) and is now being used as part of the Seattle Founders soccer team logo (
http://www.soundersfc.com ). I have no idea if either team licensed the rights to use the Space Needle image or not. I do note that the Supersonics are no longer in Seattle and no longer use the Space Needle image as a trademark (which may have cleared the way for the Founders to license those rights).
Can your get into trouble for using the Space Needle image as part of your swim team logo? Maybe -- your own trademark attorney needs to answer that question.