More trouble at the Detroit Land Bank Authority.
An internal review will look into Chicago-based contractor McDonagh Demolition Inc., which allegedly tore down several homes and buried the debris under backfill dirt instead of properly disposing of the materials, Kat Stafford of the Detroit Free Press reports.
If the allegations prove true, the contractor could lose more than $15 million in scheduled demolitions and face suspension or expulsion from the program.
The inquiry involves all 90 demolitions the company performed in Detroit, the Freep reports, adding:
Concerns regarding proper abatement and backfill practices also have raised questions about unusually high bidding awards for some demolition projects. A Free Press review of McDonagh demolition projects found a half dozen that were well above the $25,000 ceiling for federal dollars. At least two were more than $40,000, according to city records.