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Volatile scrap metal prices caused a contractor to back out of its low bid of $62,204 to dismantle the Green Acres water storage tank in the Town of Tonawanda.

Apollo Dismantling Services of Niagara Falls was awarded the job at the Town Board’s June 17 meeting but told town officials in a letter dated June 19 that its scrap metal buyer could not honor the price provided in May.

“We attempted to renegotiate the price on recycled iron with Niagara Metals, but they would not buy the steel at the guaranteed price they provided Apollo in May,” the company’s president, Samuel M. DeFranks, wrote.

The Town Board at its regular meeting Monday rescinded the award and gave it to the next-lowest bidder, Regional Environmental Demolition, for $112,223.

“They were very happy when I called them,” Michael J. Kaiser, director of the town’s Technical Support Department, said of Regional. “In fact, when I told them, they wanted to do it the next day. I said, ‘No, that can’t happen.’ ”

Demolition could begin as early as later this month, Kaiser said, and Apollo will receive its $3,000 bid bond deposit because the project did not have to go out for bids again.

Apollo’s bid included a credit to the town of $47,300 for the sale of the metal, which resulted in its substantially lower bid. But DeFranks in the letter said Niagara Metals “would only provide weekly pricing because the current recycled steel market is very soft and per ton pricing is dropping by as much as $50 per ton or more.”

The large blue tank, which is visible from the Youngmann Highway, is somewhat of a landmark in the town and has not been used for many years. It is in need of substantial repairs.

Also at Monday’s meeting:

• A water line project at the town-owned North Youngmann Commerce Center was awarded to Milherst Construction for $604,531.05. The site off Interstate 290 is being made shovel-ready for development.

• The town’s E.B. Green-designed municipal building at Delaware Avenue and Delaware Road has been added to the National Register of Historic Places. Built in 1936 by the Public Works Administration, the Art Deco building continues to house the government offices of the Town of Tonawanda and the Village of Kenmore, as well as the Kenmore Justice Court.

• The board announced 151 resident World War II veterans will be honored in a ceremony Friday evening at Kenney Field, followed by a concert by the American Legion Band of the Tonawandas and a fireworks display.

email: jpopiolkowski@buffnews.com