NEW DOWNTOWN ARENA; KFC YUM!

CENTER; Hiring goals were reached on arena

Author: Green, Marcus
ProQuest document link
Abstract: Billy Parson, president and chief executive of the Associated Builders &Contractors of Kentuckiana,
who alleged a lack of public oversight and the involvement of local and nonunion companies on the project, had
not seen the Mortenson data.
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Full text: By Marcus Green
magreen@courier-journal.com
The Courier-Journal
Kentucky and Indiana firms landed more than 70 percent of the construction work on the KFC Yum! Center,
while companies located in the Louisville metro area garnered slightly more than one-third of the contracts,
according to a project summary.
The data from construction manager M.A. Mortenson Co. shows how officials divvied up the largest portion of
project contracts -- the $218 million cost of building the arena at Second and Main streets. Another $20 million
was spent on design, furniture, equipment and other costs not directly related to construction.
The Louisville Arena Authority didn't set specific participation goals for local businesses, said Allen Troshinsky,
operations manager for Mortenson's sports group.
Overall, the data shows that Kentucky and Indiana companies were awarded 71 percent of the contracts -$154.3 million. Firms with a Louisville presence got $76.2 million in work, or 35 percent.
"This is consistent with the participation that we've seen from project to project," Troshinsky said.
The project finished with 84 percent of workers from Kentucky and Indiana, and 63 percent from the Louisville
area, exceeding goals set by the city and monitored by the arena authority.
It also met goals for minority and female workers and participation from women- and minority-owned
businesses.
Mortenson's records of bidders and bids on the arena aren't required to be made public, according to a 2009
opinion from Attorney General Jack Conway's office.
The ruling means that only contracts awarded by the arena authority itself -- such as the one between the
authority and Mortenson -- fall under the state's open records laws.
Overall, the construction involved 46 prime contractors, with 14 of those having either headquarters or offices in
the Louisville area and 22 located in Kentucky or Indiana, according to the Mortenson summary.
Billy Parson, president and chief executive of the Associated Builders &Contractors of Kentuckiana, who alleged
a lack of public oversight and the involvement of local and nonunion companies on the project, had not seen the
Mortenson data. But he claimed the "overwhelming majority" of work went to union affiliates.
"I don't think there was anything transparent about it. The focus of the project was to get it done," Parson said.
Ten of the 108 contracts awarded to Louisville-area companies for construction work are affiliated with the
AB&C's Kentuckiana chapter, according to the Mortenson data and a review of the association's members.
Troshinsky defended the transparency of the subcontracting process, noting the reports that were regularly
presented at the arena authority's monthly meetings.
He said contracts were awarded based on the companies' proposals and not by their relationship to organized
labor.
"At the end of the day we were really blind to that," Troshinsky said.
Reporter Marcus Green can be reached at (502) 582-4675.

Subject: Construction; Minority owned businesses; Stadiums;

Publication title: Courier - Journal
Pages: D.1
Publication year: 2011
Publication date: Jan 30, 2011
Year: 2011
Section: News
Publisher: Gannett Co., Inc.
Place of publication: Louisville, Ky.
Country of publication: United States
Publication subject: General Interest Periodicals--United States
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 848563182
Document URL: http://search.proquest.com/docview/848563182?accountid=3730
Copyright: Copyright 2011 - Courier-Journal Louisville, Ky. - All Rights Reserved
Last updated: 2013-01-02
Database: Courier-Journal (Louisville)

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