DEMCO Assumes Demolition Duties in Buffalo, N.Y.

Erie Canal Harbor Development Corp. announced that DEMCO, based in western New York, has agreed to handle demolition activities at the Memorial Auditorium. The firm’s $1,646,000 demolition proposal, which is accompanied by an additional $97,000 for the removal of various architectural elements requested by the City of Buffalo, is likely to be approved by the ECHDC board of directors at its upcoming December meeting.

"Even in these tough economic times, ECHDC remains determined to keep the waterfront revitalization effort moving," said Jordan Levy, chairman, Erie Canal Harbor Development Corporation. "The Aud demolition contract process has presented us with certain external dynamics beyond our control. However, we’re encouraged to have quickly reached an agreement with another strong local firm, which will allow us to avoid any long-term delays or the need for a re-bid."

Earlier this fall, ECHDC authorized a $1,498,078 Aud demolition contract with Ontario Specialty Contracting Inc., but was subsequently notified of the firm’s intention to rescind its bid due to changes in steel scrap values. Following this notification, the Harbor Corp. received written withdrawal confirmation from the next lowest responsible bidder, Titan Wrecking & Environmental LLC. As a result, ECHDC agreed to formally bypass both firms’ respective bids, thereby avoiding possible litigation and allowing the Harbor Corp. to tender an un-amended demolition contract offer to DEMCO, Inc.

"DEMCO, Inc. is aware of the current economic climate and has expressed a clear commitment to this project," said Levy. "We’re confident that the firm can handle the Aud demolition work in a timely and cost-effective manner."

Following approval, the revised contract will require DEMCO, Inc. to commence work by late-December 2008, and finish no later than late-spring/early-summer 2009. The total authorized contract includes a base fee of $1,646,000, as well as an additional $97,000, to cover the costs of removing various commemorative architectural elements from the exterior of the building. These architectural elements will be used by the City of Buffalo to construct a public memorial to the Aud. A contingency fee may also be authorized by the board of directors during the December meeting, to cover any unanticipated change orders that may occur, as a result of additional asbestos discovery or further soil environmental testing needs. ECHDC plans to pay for the Aud demolition contract through monies received via an agreement with the New York Power Authority and remaining grant funds provided by the County of Erie for asbestos remediation. C&S Companies provided the original engineering estimate for Aud demolition, assessing the work to cost roughly around $4 million.