Demo disaster: Detroit's secret negotiations with contractors

DETROIT (WJBK) - Mayor Mike Duggan confirmed to FOX 2's Charlie LeDuff that the city held private talks with preferred contractors last year in order to set a price for bulk demolition.

Eventually those contractors were awarded special one-time contracts while other demolition companies not privy to the talks were left out in the cold.

"It was a negotiated price, there's no question about it," Mayor Duggan told LeDuff, when confronted with emails confirming the deal. "I don't believe it was collusion."

The average price of demolition in Detroit- paid for with federal dollars -- has since spiraled to $20,000, the mayor acknowledged. 

Mayor Duggan answers Charlie's questions about the process. He also appeared on Let It Rip on Thursday. Watch LeDuff and Duggan go head to head here.

Click here to watch LeDuff's full interview and see more of his coverage on YouTube.