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Contractors Face Fines for Lack of Local Workers

Construction of an NHL arena is causing a problem for local officials.

Thu October 13, 2016 - Midwest Edition
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An estimated half-million dollars in fines have been levied on contractors working on the new Red Wings arena because the companies haven't hired enough Detroit residents.
An estimated half-million dollars in fines have been levied on contractors working on the new Red Wings arena because the companies haven't hired enough Detroit residents.

DETROIT (AP) - Detroit officials say an estimated half-million dollars in fines have been levied on contractors working on the new Red Wings arena because the companies haven't hired enough Detroit residents.

Little Caesars Arena's developer, Olympia Development of Michigan, is required to ensure at least 51 percent of the workers live in Detroit. The Detroit News reports (http://detne.ws/2dVAj0s ) that goal hasn't been met during certain periods of construction.

Olympia Development referred comment to Douglass Diggs, of Heritage Realty Services LLC. Diggs says Detroit and developers are working together on the issue, noting that a lack of skilled-trade workers who live in Detroit has been an ongoing issue for years.

The 51 percent goal was part of an agreement to allow $250 million in taxpayer-backed bonds to help fund construction of the arena.




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