Photo: Deadline Detroit file
Detroit has had an ambitious demolition prorgram to help rid the city of blight. But with that goal have come periodic questions about contractors bidding for projects, and a federal probe into the operations.
Now comes the latest issue, reports Kat Stafford of the Detroit Free Press:
Detroit Land Bank Authority was forced to cancel more than $2.4 million in demolition awards earlier this month after it was discovered there was only one eligible bidder among a pool of firms — a violation of regulations that govern the program.
Agency officials admit errors were made during the bidding process, but dispute that their actions resulted in improper bids actually being awarded. Instead, the land bank claims, incomplete and "misleading" information was disseminated but quickly rescinded — after a Free Press investigation raised questions about the bidding.
The newspaper's inquiry also raises questions about whether a key change in the demolition bidding process — originally intended to broaden competition for the lucrative demolition contracts — has actually limited opportunities instead.
Columnist Charlie LeDuff first reported about the cancelled demolition projects in Deadline Detroit last week.
A Freep examination of demolition bids from earlier this summer found that the second largest contractor within the program — Homrich — was deemed the only qualified bidder among half the eight bid groups that were released on June 26, reports Stafford.
Under the federally funded program, there must be at least two qualified bidders in order to award contracts. Homrich has performed more than $40 million in federal- and city-funded demolition work since 2014.
Canceling the awards means 126 blighted homes that were to be demolished will stand longer while those bids are redone in early September.
