A state agency's decision could lead to a delay in the start of construction for Louisville's new arena.  That has the Arena Authority in hot water over the bid it awarded to demolish buildings on the arena site.

With construction financing still up in the air, pre-demolition work has been one of the arena project's bright spots.  But a Finance Cabinet ruling may mean demolition won't be ahead of schedule much longer.

Louisville-based CRS Demolition and Dore Contracting of Michigan both complained after their $1.6 million dollar bids were passed over.  O'Rourke Wrecking got the job, even though it's bid was a million dollars higher.

On February 24th, Jim Host, the Arena Authority Chairman, said, "It isn't based on just the lowest bid.  It's based on the best bid."   But the two contractors were stunned to learn O'Rourke would implode the Humana Building and it did not have to save the parking garage.

The Finance Cabinet now agrees bid documents clearly called for sparing the parking garage, and finds the Arena Authority was wrong to go along with O'Rourke's proposal to change the plan.

According to the Finance Cabinet, the contract with O'Rourke must be rescinded and new steps taken to make sure the process is fair to all interested in making a new bid.

Dick Irby is working to get reaction on these developments from the Arena Authority.  He'll have more later Monday on Fox News at Four.