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Rut roh: Olympia Entertainment owes significant property taxes to City of Detroit

Oh boy, per the Detroit News's Christine MacDonald and the Free Press's Matt Helms:

Mike Ilitch’s entertainment empire owes Detroit nearly a million dollars in unpaid property taxes on Joe Louis Arena and Cobo Arena downtown dating back to 2009, according to documents obtained today by the Free Press.

Questions about the Ilitch organization’s financial obligations to the city emerged today in Lansing as lawmakers debated a plan that would allow local taxes in downtown Detroit to help fund a $650-million plan for a new Red Wings arena that would anchor an entertainment, retail and housing district downtown.

The Free Press left several messages with representatives of Ilitch Holdings and continues seeking comment from the organization.

The tax documents, dated Dec. 10, show that the Ilitch family’s Olympia Entertainment, for years an engine of stability and growth in downtown Detroit showcasing the Detroit Red Wings, the Detroit Tigers and the Fox Theatre, is in arrears $971,482.52 on property taxes on the two riverfront properties, with another $58,162.53 due next month.

Olympia Entertainment leases Joe Louis Arena from the city, but it wasn’t immediately clear which portions of Cobo are referred to in the tax bill. That lease is set to expire soon.

Continued

Filed in: | The Malik Report | Permalink
 

Comments

Slumpy's avatar

Rich people don’t like to pay taxes, news at 11.

SHOCKING!

Posted by Slumpy from Detroit on 12/13/12 at 04:09 PM ET

Paul's avatar

The DetNews story has been updated to include…

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.”

 

 

Posted by Paul from Motown Area on 12/13/12 at 05:30 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.