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City receives 9 bids for Winona demolition

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The company that received the contract from the city of Indianapolis to demolish the Keystone Towers apartment complex also has submitted the low bid to raze the former Winona Hospital.

Indianapolis-based Denney Excavating submitted a bid of $695,289 to demolish the Winona building at 3232 N. Meridian St.

Overall, the city received nine bids, which were due on Tuesday. The city is set to award a contract on Thursday.

Dore and Associates of Bay City, Mich., submitted a high bid of $3.8 million.

The successful bidder will have 90 days to complete the demolition and clean up of the site.   

The 317-bed hospital building at Meridian and 32nd streets opened in 1956 and closed in 2004 after owners declared bankruptcy. In October 2009, it was listed—along with its unpaid tax bill of nearly $1 million—in the Marion County Treasurer’s tax sale.

A March 2010 deadline to submit a bid to purchase the former hospital from the city failed to attract a single offer. The property was listed for $667,500.

The city now can enter into a redevelopment agreement without seeking public bids.

The city is using an $8 million federal grant from the Department of Housing and Urban Development to pay for the both Keystone Towers and Winona demolitions. It budgeted $2 million for each project.

Denney won the contract to demolish the vacant Keystone Towers with a bid of $827,000. It was imploded Aug. 28.

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  • There are no actual costs for Winona
    PJ, Winona has not been demolished so there are no actual costs. The lowest bidder does not necessarily win the bid. It has to be the lowest qualified bidder submitting a bona fide bid. Sometimes companies deliberately underbid and if the city thinks the bid is unrealistic or otherwise doesn't meet the bid criteria then they will not select that bid.

    As for the money, it comes from a federal grant that is restricted to certain uses and certain types of projects. So, any amounts not used on demolition would have to be appropriated toward certain other redevelopment projects that meet the grant requirements; or else the money would have to be returned.
  • Extra money?
    The "surplus" will go back into the Genera Fund, I'm sure
  • Extra Money?
    So, overall, the city had budgeted $4 million for the demolition of Keystone towers and Winona. Actual costs came in at $827,000 and $695,000 respectively. What happens now to the extra $1.5 million?

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