Worcester's Polar Park in early 2022. Photo courtesy of IUOE Local 4

Gilbane Building Co. and Hunt Construction Group were hit with a $1.9 million fine by outgoing Attorney General Maura Healey for allegedly lying to the Worcester Redevelopment Authority about how many women- and minority-owned subcontractors were helping them build Worcester’s new Polar Park.

The attorney general’s office announced the settlement in its suit against the joint venture, Gilbane/Hunt, the two companies had formed to construct the publicly-owned stadium for the Boston Red Sox’s Worcester farm team.

When tapped by the city of Worcester as the stadium project’s construction manager at-risk, Gilbane/Hunt committed to using “best efforts” to hit the city’s goal that at least 20 percent of the roughly $105 million in subcontracts for the project were spent with woman- and minority-owned businesses, and to make sure the goal was met with a “robust action plan.”

But instead, the attorney general’s office said, Gilbane/Hunt “did little” to encourage these firms to take part in the project, didn’t track woman- and minority-owned business participation, failed to keep the Worcester Redevelopment Authority updated monthly on its spending with these firms and later outright lied to WRA officials about the diversity of the companies taking part in the ballpark’s construction. An investigation by the attorney general’s office, which was triggered by a GBH News investigation in April 2021, claims the joint venture misled the WRA into thinking between 17 percent and 18 percent of subcontract dollars were being spent with woman- and minority-owned businesses, when in fact only between 11 percent and 12 percent was.

The investigation also found Gilbane failed to tell the state Division of Capital Asset Management and Maintenance about this investigation, as required, in multiple filings in 2021 and 2022, the attorney general’s office said.

“Construction companies in Massachusetts must live up to their promises to create opportunities for women and minority-owned businesses on public projects,” Attorney General Maura Healey said in a statement issued Dec. 22. “If a company says that the inclusion of diverse businesses is a priority in an effort to win a public contract, we are going to ensure that they are held accountable for those representations.”

Gilbane/Hunt disputes the claim by Healey’s office that it didn’t properly and regularly report women- and minority-owned business participation. The company said it “provided monthly reporting based on original contract commitments for M/WBE participation provided by prime subcontractors.”

“While the Gilbane-Hunt joint-venture team fully cooperated with this investigation, we strongly disagree with the allegations and this settlement framework does not include any admission of liability. The joint-venture team is proud of constructing the Polar Park project and our commitment to diversity, inclusion and driving economic opportunity in the community,” Gilbane/Hunt spokesperson John Gallagher said in an email Tuesday.

Under the terms of its settlement with the attorney general’s office, Gilbane/Hunt will pay a $1.9 million fine, $500,000 of which will be forwarded to the city of Worcester as restitution.

“The City of Worcester plans to utilize the $500,000 proceeds along with $550,000 we have already committed through the American Rescue Plan Act (ARPA) to help implement our Minority and Women Business Enterprise (M/WBE) initiative,” Worcester City Manager Eric D. Batista said in a statement issued by the attorney general’s office. “Our work to improve government contracting opportunities with underrepresented businesses is one of our recent initiatives to ensure our economic development strategy is more equitable and inclusive.”

In addition, Providence-based Gilbane and Indianapolis-based Hunt will each hire a monitor to oversee their compliance with contract requirements and state laws covering woman- and minority-owned business participation in public construction projects for the next three years.