Friday, November 06, 2015

If Obama had a city.....$3.7M extra paid in Detroit's blight fight

$3.7M extra paid in Detroit's blight fight:
"A controversial deal between Detroit’s land bank and several large contractors designed to speed up demolitions at a set price instead ended up costing the city at least $3.7 million more than expected, according to records reviewed by the Free Press.
Contracts awarded last summer to major demolition companies rose above what the Detroit Land Bank Authority said were take-it-or-leave-it prices, records show.
The land bank approved the higher payouts, which the demolition companies submitted as change orders — extra billings to cover costs in excess of the set price for each home demolition.
The higher costs meant fewer blighted eyesores would be torn down with the $20 million spent on contracts with three demolition companies.
The contractors demolished 1,453 houses, at an average price of $13,748 per home, between July and December last year, according to land bank records...
...The unit-price contracts awarded in June 2014 are only three of numerous demolition contracts now under heavy scrutiny because costs have soared under Duggan’s blight elimination program to an average of $16,400 per home, up from $8,500 to $10,500 under former Mayor Dave Bing. 
The mayor's office said a recent round of demolitions put out to bid came in at $14,040, showing that prices are coming down..."

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