Alleged theft from Detroit Riverfront Conservancy alters construction plans

Yes, but: "Challenges associated with the fraud disclosed earlier this year" have forced the cancellation of plans for a temporary path linking eastern and western portions of the Riverwalk, according to an email obtained by the Detroit News that was sent Oct. 30 to nearby residents.

Catch up quick: The conservancy has been redeveloping the city's Riverwalk and other riverfront parks and attractions for more than 20 years.

• In May, it disclosed multimillion-dollar losses and fired its then-CFO, William Smith, shocking the local philanthropic, government and business communities.
• Smith was charged in June with stealing nearly $40 million from the nonprofit since 2012.
• His plea hearing is scheduled for Friday in the U.S. District Court for the Eastern District of Michigan downtown.

Zoom in: The temporary path would have been installed this summer to link a new boardwalk at the Riverfront Towers residential complex with a newly built stretch of Riverwalk to the west.

• The connection point is near Ralph C. Wilson Jr. Centennial Park, which remains under construction.

What they're saying: Conservancy spokesperson Marc Pasco told Axios in a statement on Friday that factors outside the alleged theft contributed to the decision not to build the path.

• The statement cited fewer pedestrians during the winter and upcoming construction on West Jefferson Avenue.
• "The decision to delay the opening is simply the result of our cost/benefit analysis given seasonality and upcoming construction on Jefferson," Pasco says.

The bottom line: Ralph C. Wilson Jr. Centennial Park's construction schedule is unchanged, Pasco tells Axios.

• The Riverfront Towers boardwalk, the new stretch of Riverwalk to its west and the park will debut together when the park is finished next fall.