Political BLOG

Mark Hebert
May 2008
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Host and Co. Blew Arena Demolition Bid - Finance Cabinet

9:57 PM Tue, May 27, 2008 |
Mark Hebert

Louisville Arena Authority chairman Jim Host says the authority will issue a new request for proposal (RFP) tomorrow after the state finance cabinet concluded that the LAA illegally awarded a demolition contract to a Cincinnati company.

Two demolition companies, CRS and Dore and Associates, had filed appeals with the Finance Cabinet, claiming the contract to demolish the old Humana building at 2nd and Main in Louisville, was improperly awarded to O'Rourke Wrecking. O'Rourke's bid was $2.8 million, about $1.2 higher than CRS and Dore. But the main reason for their dismay was that the Arena Authority's original RFP required the companies to submit bids to demolish the building while keeping the two story underground parking garage intact. After O'Rourke got the contract, the Authority switched gears, allowing the company to implode the entire building, parking structure and all. That was an unfair switcheroo according to CRS and Dore. Finance Cabinet attorney Lori Flanery agreed, ordering the Arena Authority to re-bid the project. But it may not be that easy. Since the Louisville Arena Authority opted to push ahead with the demolition before getting a ruling on the bid protests, O'Rourke has already done two months worth of work and must be paid for their trouble. They'd also seem to have an advantage over other companies in the new bidding process because O'Rourke already has crews and equipment on site.

CRS spokesman Daryl Brown says the "arrogance" of the Arena Authority has caused the problem which could move into the courts and hold up the arena project. Dore president Arthur Dore says he hasn't seen mistakes like this in 50 years of bidding on demolition projects. He says Host appeared to be in charge and making most of the decisions on the demolition contract. Dore and Brown both blame Host for pushing ahead with the contract for O'Rourke, when they believe there were obvious legal and fairness problems with it. CRS' Brown says taxpayers should be worried that if the Authority has blown this tiny contract, it might mishandle the more than 300+ million dollars in other contracts for the arena.

Host doesn't believe the Authority did anything wrong. He says they wouldn't have granted the contract and moved ahead without approval from attornies. Host doesn't believe the re-bid will delay the arena project by more than a couple days. He doesn't know if it will drive up the ultimate cost of the demolition project. Brown believes it will and says the only thing he can compare it to is the problems with the Louisville Kennedy Bridge painting project, which went through three contractors and more than $30 million before it was completed.




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