The Malik Report
by George Malik on 12/13/12 at 05:37 PM ET
Updated at 11:07 PM: Olympia Entertainment is now stating that as a leasee, it owes no taxes and has not been given a tax bill by the city.
Now things get a bit...Nuanced, I suppose. The property taxes that Olympia Entertainment and Ilitch Holdings owe they City of Detroit are supposedly unpaid very specifically because the Ilitches have been leasing Joe Louis Arena on an informal basis, as they claim to the Detroit News's Christine Macdonald...
The reason the taxes haven't been paid is because the lease ended in June 2010, according to a Thursday statement by the Detroit Economic Growth Corporation and Olympia Entertainment Inc.
"A new lease is being discussed," the city's economic development arm and the Ilitch Holdings Inc. company said, "and the intent of both parties has been to have the taxes in question reconciled when the new lease is renewed."
The city of Detroit and Olympia Entertainment have been negotiating for more than two years about extending the lease for Joe Louis Arena — where the Detroit Red Wings play — and Cobo Arena. Olympia Entertainment doesn't want a long-term lease because of the plan to build a new arena.
And in Lansing, per the Free Press's Kathleen Gray...
A bill that gives the Ilitch organization a leg up on a proposed sports and entertainment complex in Detroit passed the state House by a 58-49 margin Thursday afternoon.
The bill would allow the Downtown Development Authority to continue to capture funds — about $12 million a year — to help pay for infrastructure needs associated with the proposed $300-million Ilitch project.
The bill now heads to Governor Snyder's desk as the State Senate already approved the legislation.
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