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Let’s just say that the Red Wings’ rink proposal won’t be derailed by Detroit’s municipal bankruptcy

Updated 2x: the funding plan for the Wings' rink proposal has been approved. We're apparently still waiting for this to go down, but the Detroit News's Louis Aguilar reports that Michigan governor Rick Snyder's makig a public show of support for the Red Wings' rink and economic development project today in Lansing:

Gov. Rick Snyder will tout the $650 million new hockey arena and 45-block entertainment district Wednesday afternoon as evidence that big Detroit projects will continue to move forward amid Chapter 9 bankruptcy.

Snyder was scheduled to speak at 2 p.m during the Michigan Strategic Fund meeting where the fund, a state economic development agency, is expected to start the process for $284.5 million in 30-year bonds to cover the public portion of the arena’s construction costs.

The bonds were revealed in the June announcement of the new arena and entertainment district. A division of the Detroit Economic Growth Corp. intends to use property taxes captured within its 615-acre downtown district to pay off bonds issued by the state to build the 18,000-seat hockey and entertainment arena at Woodward and I-75.

The remainder of the arena costs, $365.5 million, will be picked up by Olympia Development of Michigan, the property development arm of Mike and Marian Ilitch. Mike Ilitch owns the Red Wings and Detroit Tigers. Together, they both own the Little Caesars pizza chain.

City general fund tax dollars are not being used the hockey arena. Instead, it’s a blend of mostly private financing with some other public funding.

Update: It's official:

Update #2: MLive's David Muller confirms:

On Wednesday, Gov. Rick Snyder said he expects the project, which is expected to add 4,380 construction jobs, to be a boon for Detroit.

“This new entertainment district will be much more than a new arena for the Detroit Red Wings. This is a project that will help revitalize Detroit,” Snyder said in a statement. “This project creates another major destination point for residents and visitors alike that builds on prior investments along Woodward from Comerica Park and Ford Field to the new Whole Foods in Mid-Town. The Ilitch family organization is making an enormous investment in the city and state bond financing makes this project a true public-private partnership.”

The project was first revealed near the end of last year when the Illitch family said that that the development hinged on passage of state legislation that allows for use of DDA funds. That legislation passed in December.

The state legislation allows Detroit's DDA to collect up to $15 million a year for the project. According to the DEGC, the primary public funding mechanism for the project will be about $12.8 million per year in property taxes captured. The DDA will contribute another $2 million each year, and OIympia Development will pay another $11.5 million annually. Together, those three commitments will be used to retire 30-year bonds through the MSF.

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Comments

MoreShoot's avatar

Pity there is no State level authority to, I don’t know, demolish 80,000 fire hazards or put 2000 cops on the street.

Posted by MoreShoot on 07/24/13 at 02:24 PM ET

RhymeTimeWingsDings's avatar

Woah Woah Woah no politician would make money doing that^^^^

Posted by RhymeTimeWingsDings on 07/24/13 at 02:33 PM ET

MoreShoot's avatar

Woah Woah Woah no politician would make money doing that^^^^

He would if he were in real estate.  They might actually start building houses again.  Concept!

Posted by MoreShoot on 07/24/13 at 02:38 PM ET

Avatar

This isn’t a new stadium, it is high density housing for Wings fans.

Posted by hockey1919 from mid-atlantic on 07/24/13 at 02:42 PM ET

Hootinani's avatar

He would if he were in real estate.  They might actually start building houses again.  Concept!
Posted by MoreShoot on 07/24/13 at 03:38 PM ET

Houses for who?  Even if the neighbohoods were completely demolished and reparceled, nobody with any kind of income would be willing to live there.  And if they replace it with low income housing, it’ll be back to the state its in today soon enough.

Detroit needs jobs that pay above minimum wage and politicians that don’t use tax money like personal checking before there will be a turn around in real estate value and quality of life.

I agree that those houses are dangerous and need to go, but like Rhyme said, there’s no money in it, and no voting tax payers to answer to when a block burns down.

Posted by Hootinani on 07/24/13 at 03:29 PM ET

HockeytownOverhaul's avatar

Exactly hoot. With economic uncertainty the company owners cut costs first on labor. Looking for a second job in ohio driving a forklift even companies where friends could get me in they still only started at 9ph.. i was trained on a forklift for 11ph.. to TRAIN me 8in years ago.

Posted by HockeytownOverhaul on 07/24/13 at 03:37 PM ET

RhymeTimeWingsDings's avatar

He would if he were in real estate.  They might actually start building houses again.  Concept!

Posted by MoreShoot on 07/24/13 at 03:38 PM ET


Pefectly true but to far down the road for most to give any real effort

Posted by RhymeTimeWingsDings on 07/24/13 at 05:10 PM ET

RhymeTimeWingsDings's avatar

Well actually since this has been happening for the past 40+ years there is finally no place left to turn to.  I kinda think of this as London’s great fire.  Through anarchy and destruction come growth.

Posted by RhymeTimeWingsDings on 07/24/13 at 05:12 PM ET

HockeytownOverhaul's avatar

Hope no one shows up at your house with a can of gas on Devils Night RTWD.

Posted by HockeytownOverhaul on 07/24/13 at 06:59 PM ET

RhymeTimeWingsDings's avatar

Hope no one shows up at your house with a can of gas on Devils Night RTWD.
   
    Posted by
     
    HockeytownOverhaul
     
      on 07/24/13 at 07:59 PM ET

WOW that’s the most cowardly thing I have ever heard.  This wasn’t just an over the internet threat it was the suggestion of a threat.

Posted by RhymeTimeWingsDings on 07/24/13 at 10:06 PM ET

George Malik's avatar

That is completely inappropriate.

Posted by George Malik from South Lyon, MI on 07/24/13 at 10:16 PM ET

HockeytownOverhaul's avatar

I was comparing your statment of burning everything down to something more perssonal for you since you seemed to think it was alright to talk about anarchy and destruction just being a step toward growth for the people of detroit… get back in touch with reality assault rifle guy

Posted by HockeytownOverhaul on 07/25/13 at 05:54 AM ET

HockeytownOverhaul's avatar

And shame on you george for encouragung the guy promoting anarchy and destruction in his priorr post.. im stunned to be honest

Posted by HockeytownOverhaul on 07/25/13 at 05:56 AM ET

RhymeTimeWingsDings's avatar

Alright I meant that Detroit’s bankruptcy is similar to the London fire in that its a chance to start over completely.  A chance to remake a disaster into a opportunity for future generations to come.  In no way do I hope for fire and ruin in Detroit.  Just organized destruction of buildings that no longer serve a purpose and are undoubtedly a safety hazard.  Through hard work a beautiful city may rise again.

Posted by RhymeTimeWingsDings on 07/25/13 at 05:44 PM ET

HockeytownOverhaul's avatar

Through anarchy and destruction come growth.

is what you said.


Just organized destruction of buildings that no longer serve a purpose and are undoubtedly a safety hazard. 

Though I appreciate the revision.

Posted by HockeytownOverhaul on 07/25/13 at 10:17 PM ET

RhymeTimeWingsDings's avatar

You read way to deeply into innocent comments and make insinuations of threats after, grow up.

Posted by RhymeTimeWingsDings on 07/26/13 at 11:48 PM ET

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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.