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CONFLICT OF INTEREST QUESTIONS ARISE IN INDY ARENA PROJECT

          A "controversial contractor and big contributor" to
     Indianapolis Mayor Stephen Goldsmith's political campaigns
     "has a share" of the $3.7M contract to manage construction
     of the city's new basketball arena, according to Kathleen
     Johnston of the INDIANAPOLIS STAR-NEWS.  OH-based minority
     construction management firm Sherman R. Smoot Co. won the
     contract "with the help of its attorney," former Deputy
     Mayor Joseph Loftus.  Loftus also acted as a city-paid
     lobbyist to convince the state legislature to help finance
     the arena.  Loftus, on a potential conflict of interest:
     "All I did was make a contact. ... I maintain (there was)
     nothing inappropriate."  Mayor Goldsmith said that he did
     not play a role in connecting Smoot with construction
     managers Huber, Hunt & Nichols (HHN), and called any
     suggestion that Loftus had a conflict "way off base."  HHN
     President Mike Kerr said that he "was not pressured" to team
     with Smoot, and that he joined with Smoot "because the
     Goldsmith administration emphasized the need for significant
     minority participation" in the project (STAR-NEWS, 7/17).

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