State approves plan for new Red Wings arena to be built in Detroit
The Red Wings are one step closer to a new arena. The states approved a plan put forth for public money to help finance a new building.
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The City of Detroit made some bad news this past week when it declared bankruptcy. As most everybody knows, the city has fallen on hard times in recent years and eventually it just became overwhelming.
Immediately it made people wonder about the future of the Red Wings. You'll recall the Wings were working with public officials to build a new arena in downtown Detroit to replace Joe Louis. Would the bankruptcy declaration change those plans? After all, the idea of a bankrupt city paying for the majority of a sports arena is tough to swallw in times like this.
The answer is no. On Wednesday the Michigan Stategic Fund approved the plan to issue up to $450 million in bonds to finance the new arena. Some of that $450 million would also be used to help build up the area around the yet-to-be-built arena as well. It's all about the investment (via Detroit Free-Press).
When asked why taxpayers and city employees should support public funds for a sports arena at a time when Detroit is bankrupt, Snyder defended the use of state-issued bonds, saying Detroit needs the tax dollars and jobs.
The arena project "should increase the tax base of the city longer term, and should increase the employment opportunities for Detroiters," he said. "So this should create a better environment for Detroit long-term, and that will be better for all of us."
Not to mention, the money doesn't come from the same city that declared bankruptcy, or at least from the same branch. The arena would be owned by the Detroit Downtown Development Authority which is designed to take taxes and enhance the neighborhood with building upgrades and such. This just happens to be a larger investment than most but this is a reason why the DDA exists. It has a different account than the city proper.
Right now the expectation is for the 18,000-seat arena to be constructed by 2017.
