Demolition Becomes A Wreck

A federal judge may halt the stalled demolition of Omaha’s Civic Auditorium and Music Hall because of a lawsuit against the city over the bidding process.

Closing in 2014.

Efforts are already waning because the wrecking company is in financial trouble. The City of Omaha hired Illinois company DeNovo Constructors’ Inc. to tear down the arena but officials were told that the company couldn’t afford to finish the $3.1 million deal.

The city filed a claim against U.S. Specialty Insurance Co., of Houston, which posted a bond for DeNovo. Now the surety company is taking over and negotiating with two other firms to finish the project, according to Omaha World-Herald.

Meanwhile, Omaha local Kevin Reddick of Husker Tree & Landscaping filed a lawsuit claiming the city violated his rights by awarding the contract to DeNovo and didn’t follow its small and emerging business ordinance in the process, the World-Herald reports.

If the judge rules in Reddick’s favor and the DeNovo contract becomes void, the city will have to start over and the company could sue.