[News] Red Wings Plan new $650 Million Arena

[korzym12]

DETROIT -- The Detroit Red Wings and city officials on Wednesday announced a $650 million plan for a new arena development for the NHL team in Detroit's downtown entertainment and sports district.
Plans for the 18,000-seat arena were announced Wednesday at a meeting of economic development officials to approve the deal. Red Wings owner Mike Ilitch has long said he wanted a replacement for the 32-year-old Joe Louis Arena.
The Red Wings said there will be $367 million in private investment and $283 million in public funds in the complex, which would also include residential, retail and office space. Developers said the public money would come from existing economic development funds and requires no new taxes or funds from the cash-strapped city, which is the largest in the country under state financial oversight.
http://www.tsn.ca/nhl/story/?id=425869

Very odd news considering Detroit has declared bankruptcy. $283m from "public funds" isn't going to happen.

Orr's plan calls for reducing $11.5 billion in unsecured debt -- including pensions, healthcare funds and loans not backed by assets -- down to $2 billion. That would be about an 83% reduction in what investors and retirees are owed.
The restructuring plan received support from Michigan Gov. Rick Snyder, who appointed him to the post in March.http://money.cnn.com/2013/06/14/news...nts/index.html

The situation in Detroit is extreme. There couldn't be a greater joke than to say you're going to build a new arena with public money. Not happening any time soon - especially after the inevitable "restructuring" of their debt - which is to rightfully put the loss on its creditors who lent it too much money.

[MrMastodonFarm]

Originally Posted by korzym12

tbd

Works for me.

[Miniac]

The Detroit Red Wings and city officials on Wednesday announced a $650-million plan for a new arena development for the NHL team in Detroit’s downtown entertainment and sports district.
Plans for the 18,000-seat arena were announced Wednesday at a meeting of economic development officials to approve the deal. Red Wings owner Mike Ilitch has long said he wanted a replacement for the 32-year-old Joe Louis Arena.

Read more:
http://www.theglobeandmail.com/sport...medium=twitter

[Miniac]

More detail and info with pictures:

http://www.mlive.com/business/detroi...etroit.html#/4

[korzym12]

Originally Posted by Miniac

More detail and info with pictures:

http://www.mlive.com/business/detroi...etroit.html#/4

Not happening. Unless the owner wants to pay for it in full. For all those upset with Flames owners..I think the Red Wings have just topped us. I mean how could you be so dense to make this announcement and be taken seriously?

[Flash Walken]

I read somewhere that the Red Wings are in arrears to the city to the tune of something like 90 million dollars, which is where a hefty portion of the 'public funds' is coming from. I.E. instead of calling in the loan, the city is letting the wings invest it in the arena.

This was awhile ago though, don't quite remember.

[Miniac]

Originally Posted by korzym12

Not happening. Unless the owner wants to pay for it in full. For all those upset with Flames owners..I think the Red Wings have just topped us. I mean how could you be so dense to make this announcement and be taken seriously?

They are calling it a “starting point".

[korzym12]

Originally Posted by Flash Walken

I read somewhere that the Red Wings are in arrears to the city to the tune of something like 90 million dollars, which is where a hefty portion of the 'public funds' is coming from. I.E. instead of calling in the loan, the city is letting the wings invest it in the arena.

This was awhile ago though, don't quite remember.

That's a shame because it appears some of the city's debt is to pension funds.

[Miniac]

Fewer seats and higher ticket prices, and tons of public money still being used... but isn't Detroit bankrupt?? Where is all this public funding coming from?

[The Yen Man]

Originally Posted by korzym12

Not happening. Unless the owner wants to pay for it in full. For all those upset with Flames owners..I think the Red Wings have just topped us. I mean how could you be so dense to make this announcement and be taken seriously?

Who's upset at Flames owners on the arena? I think you mean the Oilers owners right? As of right now, the Flames haven't really announced anything yet.

[Flash Walken]

Originally Posted by Miniac

Fewer seats and higher ticket prices, and tons of public money still being used... but isn't Detroit bankrupt?? Where is all this public funding coming from?

It's coming from the State.

200 million dollars of the proposal is non-hockey related business and retail redevelopment.

[korzym12]

Originally Posted by The Yen Man

Who's upset at Flames owners on the arena? I think you mean the Oilers owners right? As of right now, the Flames haven't really announced anything yet.

Sorry..........by dense comments I was referring to the making the playoffs mandate vs. a bankrupt city building an arena for billionaires and millionaires.

[valo403]

Originally Posted by korzym12

Very odd news considering Detroit has declared bankruptcy. $283m from "public funds" isn't going to happen.



The situation in Detroit is extreme. There couldn't be a greater joke than to say you're going to build a new arena with public money. Not happening any time soon - especially after the inevitable "restructuring" of their debt - which is to rightfully put the loss on its creditors who lent it too much money.

First of all, Detroit has not declared bankruptcy so I'm not sure where you've come up with that idea. Second, the public funds are not derived from Detroit's general fund, they are coming from existing tax captures and already allocated economic development funds.

Detroit is desperately in need of development that will bring people and businesses to the city, not just for the night, but on a permanent basis. This project is bringing a ton of professional and residential space along with it, and will act as another anchor for the downtown area.

[valo403]

Originally Posted by Flash Walken

It's coming from the State.

200 million dollars of the proposal is non-hockey related business and retail redevelopment.

Where are you seeing that? Every source I've read has the funds coming from the city and county.

[mac_82]

Not gonna lie, I'm a bit sad. Joe Louis is my favourite NHL rink that I've been to that is still in use. But it had to happen some time.

[valo403]

Originally Posted by mac_82

Not gonna lie, I'm a bit sad. Joe Louis is my favourite NHL rink that I've been to that is still in use. But it had to happen some time.

Yeah, it's not fancy in any way but it's a great place to watch a game. Really hope you can still get Hot n Ready's at the new place.

[Flash Walken]

Originally Posted by valo403

Where are you seeing that? Every source I've read has the funds coming from the city and county.

As far as I know, and you're probably more tuned into this than I am, the State runs detroits development fund. What is confusing to me is that it's a fund held by the city, but because they are under state management.

So I guess it's city dollars that the city doesn't really have access to.

[valo403]

Originally Posted by Flash Walken

As far as I know, and you're probably more tuned into this than I am, the State runs detroits development fund. What is confusing to me is that it's a fund held by the city, but because they are under state management.

So I guess it's city dollars that the city doesn't really have access to.

Ah, I didn't know that.

[Azure]

If $387 million is coming from the owner, wouldn't that more or less pay for the arena itself, with the public money being used for the rest of the project?

Sounds okay to me. Detroit isn't going to get out of their slump unless they invest some money into getting people to come there and invest.

[bizaro86]

Originally Posted by valo403

Yeah, it's not fancy in any way but it's a great place to watch a game. Really hope you can still get Hot n Ready's at the new place.

Owner of the Wings also owns Little Caesars, so I think its likely.