Detroit firms approved for an estimated $28.9M in Event Center construction contracts

06/24/2015

Detroit, Michigan, June 24, 2015 – Detroit-based businesses are expected to earn $28.9 million from subcontracts approved today by the Downtown Development Authority (DDA) of the City of Detroit for work on the new Events Center project. The subcontracts were awarded to:

  • Kone, Inc., for elevators/escalators ($7,937,795)
  • Tooles Contracting Group, LLC, for concrete foundation casting ($28,003,300)

Kone Inc. will subcontract 11% of its work to Lardner Elevator Company in Detroit. Tooles Contracting is based in Detroit and will self-perform 47% of the work. It will also subcontract 15% to three other Detroit-based businesses, with 62% total of the concrete work staying in the city.

Both companies have agreed to comply with the Business & Workforce Participation Plan for the project, which facilitates training and hiring Detroit residents. The Kone bid of $7,937,795 included $5,103,443 public funds for the Arena and $2,834,352 private funds for the District.

Under the terms of the Concession Management Agreement (CMA) between the DDA and Olympia Development of Michigan (ODM), the DDA has the right to approve the subcontracts between the ODM general contractor Barton Mallow-Hunt Joint Venture in association with White Construction Co. and subcontractors in amounts over $500,000.

About The Downtown Development Authority

The Downtown Development Authority (DDA) supports private investments and business growth within Detroit's central business district with loans, sponsorships and grants, capital improvements to public infrastructure and other programs that increase economic activity. Funding for DDA programs comes from a number of sources including grants, contracts, interest on loans and captured tax increments - increases in property taxes that result from new investments - on approved developments. Property owners within the DDA district pay a 1 mill property tax to fund the basic operation of the DDA. The DDA has regularly scheduled meetings on the second and fourth Thursday of each month. It may also hold special meetings as needed. All meetings are announced by a posting outside the offices of DEGC, Guardian Building, 500 Griswold, Suite 2200, Detroit and at the Coleman A. Young Municipal Center. Check the calendar at www.degc.org for updates.

About Detroit Economic Growth Corporation

The Detroit Economic Growth Corporation (DEGC) is a non-profit organization that serves as the lead implementing agency for business retention, attraction and economic development initiatives in the city of Detroit. DEGC is led by a 60-member board comprised of business, civic, labor and community leaders. Its 40 professionals provide staff services for key public authorities that offer tax credits and other forms of financing for projects that bring new jobs or economic activity to the city. Among them: the Downtown Development Authority (DDA), Detroit Brownfield Redevelopment Authority (DBRA), Economic Development Corporation (EDC), Neighborhood Development Corporation (NDC), Local Development Finance Authority (LDFA), and Tax Increment Finance Authority (TIFA). DEGC also provides planning, project management and other services under contract to the City of Detroit.
 (http://www.degc.org)

Media contact:
Sharon McMurray
smcmurray@mccicorp.com
(313)300-5494