Kukla's Korner

The Malik Report

Free Press reports that City of Detroit may relinquish control of 27 properties to Ilitches for $1

WDIV's Mara MacDonald reported that the deal that will expand the Downtown Development Authority's footprint by forty blocks to accommodate the Ilitches' follow-on rink replacing Joe Louis Arena will probably be approved by Detroit's City Council today (at 10 AM), but she also reported that it will likely pass by a narrow 5-4 vote.

When the council meets with representatives from Olympia Entertainment and Ilitch Holdings this morning, the members of the council who either expect more concessions from the Ilitches or those who plan on voting "no" on principle (and/or out of personal interest) may be a little more obstinate after reading the Free Press's front-page story.

According to Joe Guillen and JC Reindl, the proposed deal on the table involves the City and Downtown Development Authority transferring the remaining 27 properties which encompass the proposed arena's footprint to the Ilitches for the pricey sum of one dollar--after various Ilitch companies have spent almost $50 million gaining control of the majority of the real estate in the area:

After weeks of debate and public meetings, the Detroit City Council is expected to decide today whether it will transfer land along the desolate streets of the Cass Corridor for the Red Wings’ new $650-million arena district.

The proposed deal — 39 vacant parcels just north of downtown for $1 — would be the city’s chief contribution to the proposed arena, a joint venture between companies controlled by Red Wings owner Mike Ilitch and the Detroit Downtown Development Authority, an agency which promotes development with tax breaks and other incentives.

Some city officials say they’re concerned about the deal and think the city should get more for the land. A Free Press analysis of city records shows that several private landowners succeeded in netting millions for themselves by selling similarly situated land in the arena’s footprint to Ilitch-controled corporations.

But others, including several council members, say the city should give the land because the new arena district will bring jobs, increase property values and rejuvenate an area mired in crime and blight for decades.

Guillen and Reindl continue and reiterate the proposed benefits and terms of the proposed arena and surrounding economic development, as well as what might happen if the city council nixes the agreement.

Filed in: | The Malik Report | Permalink
 

Comments

Rdwings28's avatar

c’mon. The Ilitch"s have done MORE than their share for your incredibly poorly run city. give them what they want will ya?

Posted by Rdwings28 on 02/04/14 at 08:20 AM ET

Avatar

Enh, what do you guys care?  After all, just think how dope that new building will be!

I’m sure the loss of tax revenues on those 27 properties, or the millions given to the Illtch’s from DDA, or the untold dozens of other ‘favors’ that we’ll never hear about would have actually impacted anything else had those resources been applied elsewhere.

Meanwhile, in about 5 years all the ‘retail’ portions of the complex will be either vacant or s’barro’s because nobody with half a clue wants to live in a city with horrendous city services, schools, and crime issues… so there will be no demographic support for much else.

But hey… hockey!  Amirite?

Posted by HockeyinHD on 02/04/14 at 09:08 AM ET

DrewBehr's avatar

Best $1 acquisition since Kris Draper.

Posted by DrewBehr from The Mitten on 02/04/14 at 09:58 AM ET

bezukov's avatar

Enh, what do you guys care?  After all, just think how dope that new building will be!

I’m not sure everyone deserves to be cynically dismissed out of hand.  Your manner might have something to do with why you’re so loved around here.

I’m sure the loss of tax revenues on those 27 properties, or the millions given to the Illtch’s from DDA, or the untold dozens of other ‘favors’ that we’ll never hear about would have actually impacted anything else had those resources been applied elsewhere.

Meanwhile, in about 5 years all the ‘retail’ portions of the complex will be either vacant or s’barro’s

Gotta agree here.  Mike Illitch probably tips his valet more than the cost of the whole arena, but he wants the city to chip in.  I’m sure they could just raid the public pension fund again, right? 

nobody with half a clue wants to live in a city with horrendous city services, schools, and crime issues… so there will be no demographic support for much else.

But hey… hockey!  Amirite?

Posted by HockeyinHD on 02/04/14 at 09:08 AM ET

Charming.

Posted by bezukov from the kids are alright. on 02/04/14 at 10:13 AM ET

Crater's avatar

Best $1 acquisition since Kris Draper.

Posted by DrewBehr from The Mitten on 02/04/14 at 09:58 AM ET

Beat me to it.

Posted by Crater from SoCal on 02/04/14 at 10:27 PM ET

redxblack's avatar

nobody with half a clue wants to live in a city with horrendous city services, schools, and crime issues… so there will be no demographic support for much else.

But hey… hockey!  Amirite?

Posted by HockeyinHD on 02/04/14 at 09:08 AM ET

So glad we’re not bothering with the WHY aspect to the poor quality of life for city residents. It sure couldn’t be fiscal policy that allows men like Illitch to amass fortunes on infrastructure crumbling beneath their feet that they aren’t asked to replace.

But I agree that another project to draw commuters from the burbs for a few hours won’t fix the institutional entropy of deindustrialization, austerity and “starving the beast” tax policy.

 

Posted by redxblack from Akron Ohio on 02/05/14 at 12:51 AM ET

Add a Comment

Please limit embedded image or media size to 575 pixels wide.

Add your own avatar by joining Kukla's Korner, or logging in and uploading one in your member control panel.

Captchas bug you? Join KK or log in and you won't have to bother.

Smileys

Notify me of follow-up comments?

Feed

Most Recent Blog Posts

About The Malik Report

The Malik Report is a destination for all things Red Wings-related. I offer biased, perhaps unprofessional-at-times and verbose coverage of my favorite team, their prospects and developmental affiliates. I've joined the Kukla's Korner family with five years of blogging under my belt, and I hope you'll find almost everything you need to follow your Red Wings at a place where all opinions are created equal and we're all friends, talking about hockey and the team we love to follow.