More specifics for a new, 18,000-seat, state-of-the-art Detroit Red Wings arena and accompanying entertainment district were revealed at a Downtown Development Authority meeting Wednesday, though Detroit Economic Growth Corporation President and CEO George Jackson said the plans are "framework" and the portrait of the development is still being drawn. The $650 million development would be funded with a mix of $365.5 million in private investment and an estimate public investment of $284.5 million, and Jackson and others were quick to stress that no money would come from the general funds of financially beleaguered city or county. Instead, the $450 million sports and entertainment center and accompanying $200 million residential, retail and office district is getting public money through tax incentive captures, he said. The entrie district encompasses a 45-block area roughly bordered by Charlotte Street to the north, Grand River to the west, Grand Circus Park to the south and Woodward Avenue to east. The actual 650,000-square-foot arena would be located on Woodward Avenue from Sproat to Henry Street, and west to Park Avenue. Further details on the project, being led by Detroit Red Wings owner Mike Ilitch's Olympia Development, came as the DDA unanimously voted to approve a memorandum of understanding between the DDA, Olympia Development and Wayne County. Eventually, the DDA will own the arena and lease it to Olympia Development. In April, DEGC spokesman Bob Rossbach said more details on plans on the development would come when the DDA is ready to take action on it. The project was first revealed near the end of last year when Red Wings owner Mike Ilitch's Ilitch Holdings said that that the development hinged on passage of state legislation that allows for use of DDA funds. That legislation passed in December, indicating plans could move forward. The state legislation allows Detroit's DDA to collect up to $15 million a year for the project. According to the DEGC, the primary public funding mechanism for the project will be about $12.8 million per year in property taxes captured. The DDA will contribute another $2 million each year, and OIympia Development will pay another $11.5 million annually. Together, those three commitments will be used to retire 30-year bonds through the Michigan Strategic Fund.
Plans for $650 million Red Wings arena and entertainment district unveiled
Michigan Live | Jun 19