Judge threatens to halt project that is already stalled.
A federal judge is mulling whether to order that the demolition work at Omaha’s Civic Auditorium and Music Hall be temporarily halted while he considers a lawsuit against the city over the bidding process.
But the demolition is already stalled. That’s because DeNovo Constructors’ Inc., the Illinois company that the City of Omaha hired to wreck the arena, is in deep financial trouble.
Two weeks into the first phase of demolition, crews from asbestos abatement subcontractor New Horizons LLC were told to halt work after city officials were informed that DeNovo couldn’t afford to perform the $3.1 million contract.
DeNovo’s bond company is taking over the job. The city is working on an agreement with the bond company that could lead to work starting again soon.
Meanwhile, the city will have to pay New Horizons to baby-sit the asbestos at the Civic to meet federal regulations for containment, although those payments will be deducted from city’s final bill.
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