Posted June 19, 2013

Red Wings, Detroit announce plans for new $650M arena

NHL
The Detroit Red Wings have played in Joe Louis Arena for 32 years. (Tom Szczerbowski/Getty Images)

The Detroit Red Wings have played in Joe Louis Arena for 32 years. (Tom Szczerbowski/Getty Images)

The Red Wings and Detroit officials have announced a plan to build a $650 million downtown arena, according to the Associated Press.

City economic development officials approved a plan including $283 million in public funds and $367 million in private investment for an 18,000-seat arena and adjacent residential and retail space.

The new arena, planned for the intersection of Interstate 75 and Woodward Avenue, just north of the Fox Theatre and near Comerica Park and Ford Field, will replace the 32-year-old Joe Louis Arena.

Red Wings owner Mike Ilitch championed the new arena as part of an expanded events district in December.

From CBS Detroit:

“It’s always been my dream to once again see a vibrant downtown Detroit,” said Mike Ilitch, chairman, Ilitch Holdings, Inc., in a press release. “From the time we bought the Fox Theatre, I could envision a downtown where the streets were bustling and people were energized.  It’s been a slow process at times, but we’re getting there now and a lot of great people are coming together to make it happen.  It’s going to happen and I want to keep us moving toward that vision.”

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6 comments
MikeSoto
MikeSoto

the current tentative deal calls for 56 percent of the total cost will be absorbed by private interests and the remainder from the public side, including a so-called "property tax capture" of nearly $13 million approved by the Michigan state legislature last year. (The tax capture was already taking place the money will just be redirected) Olympia Development, fronted by the Ilitches, would be on the hook for $11.5 million per year. There will be zero taxes raised to pay for this project.

In its initial form, no money from either the City of Detroit or Wayne County will be used to fund the project.

Detroit is the tale of 2 cities a failing city government but a private sector thats alive and well.

Steve Moore
Steve Moore

@MikeSoto  You're the Undisputed King of double talk. Nice fantasy.

If anyone believes this post I've got some prime real-estate for ya.

luv ur double talk - prop tax capture,remainder from public side, money redirected, fronted money, in it's initial form, 

Thanks for making me laugh.

DEJ1948
DEJ1948

I love me some Wings, and there's no doubt they need a new place to play, but this is ridiculous.  A city on the verge of bankruptcy commits over $200 million in public money to a sports arena?  Man, words fail me when priorities are this messed up.

Bearsclone
Bearsclone

A city which is being run by an emergency manager, which is talking about completely wiping out billions of dollars in pensions because they can't balance the books any other way, has hundreds of millions of dollars to subsidized a sports franchise?

If I was one of those retirees losing my pension, I'd be pretty enraged.

joshua33nelson
joshua33nelson

Detroit is flat broke, how are they going to come up with $283 million in public funds?

AaronMusfeldt
AaronMusfeldt

Interesting. Especially with Detroit defaulting on their debt.