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Detroit settles claims of overbilling in land bank investigation

Jun 23, 2017

The Detroit Land Bank Authority will pay the state $5 million to settle complaints over how its demolition program handled invoices.

But Mayor Mike Duggan says the city will also get $5 million from the state in new demolition money.

“This gives us enough funding to go full speed ahead with the demolitions for the next year and a half,” Duggan said.

The city also reimbursed the state roughly $1.3 million for its investigation costs.

Duggan is satisfied with the deal.

“I’m encouraged by the fact that we were able to settle out on what I think were fair terms for both sides,” he said.

A federal criminal investigation into the city’s Land Bank program is still underway.

Duggan says between 7,000 and 8,000 demolitions are scheduled for the next year.

About 11,700 homes have been torn down since Duggan took office in 2014.