A plan to build a new, $450 million hockey arena along the Cass Avenue corridor near Downtown Detroit has already faced criticism for its generous public subsidies. The City Council recently made sure the public will get something in return.
"After a number of delayed votes, the Detroit City Council today unanimously approved a rezoning that's critical to the plans to build a new arena for the Detroit Red Wings," reports Matt Helms.
At issue was a desire by the city for the developers, Olympia Development of Michigan (owned by the Illitch family, which also owns the Detroit Red Wings and the Detroit Tigers), to redevelop "one of two historic hotels near the proposed 20,000-seat arena."
According to Helms, "[t]he city's top lawyer, Melvin (Butch) Hollowell, said Olympia agreed to be held to account to complete redevelopment of the Hotel Eddystone under court order, should the city's law department ever be forced to seek such a move, in exchange for the council's approval to tear down the adjacent Hotel Park Avenue, another abandoned historic building."
As for what's at stake in the negotiations of public benefit in exchange for development: "a 20,000-seat arena and new parking deck on 12 acres in the Cass Corridor." Helms also notes that the $450 million arena will receive 58 percent of its finding from the public, which was the source of media criticism in July 2014 when the project was announced.
FULL STORY: Detroit OKs change paving way for Red Wings arena
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