Detroit to pay $52K to fix soil contamination at one demo site

May 20, 2026

Detroit City Council approved a $52,000 contract to remove contaminated soil from a demolition site on Pennsylvania Street, part of a larger investigation into approximately 650 properties across the city where demolition contractor Gayanga Co. allegedly used toxic fill dirt. The steep remediation costs have alarmed council members, especially since typical demolitions cost only $15,000-$20,000, and the city is now considering a $3.

Who is affected

Detroit residents living near approximately 650 contaminated demolition sites
Detroit taxpayers funding the remediation costs
Gayanga Co. and its owner Brian McKinney (subject of federal investigation and city suspension)
Detroit City Council members (dealing with budget implications)
Detroit's Construction & Demolition Department, Demolition Department, Law Department, and Office of the Inspector General
DMC Consultants (awarded the Pennsylvania site remediation contract)
The Mannik & Smith Group, Inc. (conducting environmental testing)
Former creditors and stakeholders of Gayanga Co.

What action is being taken

DMC Consultants is remediating the lot at 5562 Pennsylvania under the approved $52,000 contract
The Mannik & Smith Group is conducting ongoing soil sampling and analysis at approximately 650 sites
The city is conducting soil testing and analysis at the identified sites
Federal investigators are conducting an investigation involving Gayanga
Detroit police and state environmental officials are probing companies believed to have used toxic fill dirt
The Detroit Law Department is pursuing a cost recovery action for total damages against Gayanga

Why it matters

This situation represents a significant financial burden on Detroit taxpayers who must now pay millions to remediate contamination at sites they already paid to demolish and fill. The costs are particularly alarming because single-site remediation ($52,000) exceeds the original demolition costs ($15,000-$20,000), and with 650 sites under investigation, total expenses could reach tens of millions of dollars. Beyond financial implications, residents living near these sites face potential health risks from contaminated soil exposure, with some communities having multiple contaminated properties within a few blocks. The scandal undermines public trust in government procurement processes and oversight, representing another failure in Detroit's troubled demolition program history that has already seen previous federal investigations, bribery charges, and bid-rigging convictions.

What's next

A closed-session discussion on contracts, costs, and potential actions against Gayanga is expected to be held in two weeks
Council will vote on the delayed $3.5 million contract increase with The Mannik & Smith Group after the closed session
The Mannik & Smith contract is supposed to run through 2027
The city plans to directly inform households near each site of the remediation work using a "methodical approach"
The Detroit Law Department will pursue cost recovery action for total damages against Gayanga (though the company has many creditors)

Read full article from source: bridgedetroit.com