The Michigan Strategic Fund voted Tuesday to approve $6 million in demolition funds to raze Joe Louis Arena once the Detroit Red Wings move into a new arena on the north end of downtown.

Under terms of the agreement for the demolition funds, the new arena must be built before the demolition money would be freed up for use. The demolition funds would eventually be repaid to the Strategic Fund through new tax revenues captured by the city in the downtown district.

The exact cost of the demolition is not yet known. The $6-million estimate approved Tuesday could go as high as $10 million, although MSF staff said the cost is expected to be closer to the $6 million or even less than that.