City still doing business with company wit ties to man under investigation.
The demolition of more than 3,000 dilapidated or abandoned homes each year in Detroit was heralded as the beginning of a rejuventation of the beleagured city; a fresh start; and a welcome fillip for the local demolition industry.
But for all mayor Dave Bing’s good intentions, the Detroit demolition programme is rapidly becoming a case study in how NOT to run city-wide renewal programmes. First of all, demolition work was halted just hours after it began over asbestos fears, only to be restarted again shortly thereafter. And now, just days after deputy mayor Bob Buckler said that the city was seeking to ramp up the speed of the programme, comes another set of news that is set to tarnish this well-intentioned demolition drive.
According to the Detroit News, the city is continuing to do business with Bobby Ferguson, a man who is already under investigation in a city corruption probe.
ncil last week approved a maintenance contract with Xcel Construction, a company with ties to Ferguson that was raided by the FBI and other federal officials in January 2009. Earlier this spring, a city department recommended another Ferguson company for a $1 million demolition contract, but it was rejected last month after a final check showed he owed back taxes.
Councilman Kwame Kenyatta said the Xcel contract snuck by him and he plans to move to reconsider the vote this week so he can vote no. The city shouldn’t give work to contractors under criminal investigation, Kenyatta says, and he is working on an amendment to the city’s ordinances that would ban the practice.
No charges have been filed against Ferguson. Calls to Ferguson Enterprises, Xcel and two Ferguson attorneys were not returned. A spokesman for Ferguson has said in the past the companies have followed the city’s bidding process correctly and have come in as the lowest responsible bidder.
Ferguson Enterprises was listed among 12 bidders who were awarded two-year demolition contracts, according to a “preliminary notice” sent to contractors May 5. But two days later, Ferguson Enterprises failed a revenue tax and income tax clearance, Dan Lijana, a spokesman for Mayor Dave Bing, wrote in an e-mail. It’s not clear how much he owes. “Ferguson Enterprises did not qualify based on the required clearance and no recommendation was made to council to approve the contract,” Lijana wrote. “Mayor Bing has made it clear that the pay-to-play culture of the past is over.”
Ferguson, whose companies do construction and demolition work, received at least $170 million in city contracts while Bing’s predecessor Kwame Kilpatrick was mayor.
Read the full story here.
