DETROIT (WWJ/AP) – The city of Detroit has levied an estimated half-million dollars in fines on contractors working on the new Red Wings arena because the companies haven’t hired enough Detroit residents.

The deal for the new Little Caesars Arena at Woodward and I-75 calls for 51-percent of the 750 workers to be from Detroit. But according to The Detroit News, only about 40-percent of the workers at the site are from Detroit.

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.

[Insider’s Look At The New Little Caesars Arena: Get Your First Glimpse [PHOTOS]]

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

The money from the fines will go into a workforce training fund. A consultant working with Olympia Development says the fines were anticipated and that’s why the fund was set up.

TM and © Copyright 2016 CBS Radio Inc. and its relevant subsidiaries. CBS RADIO and EYE Logo TM and Copyright 2016 CBS Broadcasting Inc. Used under license. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed. The Associated Press contributed to this report.

Comments (2)
  1. Rich says:

    It is interesting we give tax breaks to these companies to build these new stadiums in Michigan. You would think they would give Michigan companies an opportunity to bid the job instead of going out of state for all the steel.

  2. Christiaan says:

    I suppose it is Japanese steel at that. Society needs to get their act together.” Why don’t they hire more “Detroiters”? – Because they lack the skills to preform what is needed. Why are they unqualified? Two reasons as I view it as. The lack of desire to apply themselves for not only their growth but also the community at large. And the proper training.available for one reason or another. I can list numerous reasons but I will refrain due doing so as not to hurt any feelings of those that have any guilt, of which are too many. What about practically non-existent American steel? I guess you can label that as one of the “benefits” of that Free Trade agreement that was conjured the mistakes we elected to work for America and not the rest of the world. Come on people let’s give America a chance to be the “Ideal” country that the rest of the world looks up to, not down upon.Thank you.

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