Financial Guaranty Insurance Co. -- the "last major holdout creditor in Detroit's bankruptcy case" -- will get to "redevelop the Joe Louis Arena site under terms of a deal struck early Thursday," according to Snell, Shepardson & Ferretti of the DETROIT NEWS. FGIC under the deal "will replace the longtime home" of the Red Wings "with a hotel, riverfront condominiums and retail." The development "includes the Joe Louis Arena parking garage." The hotel "won't be built" until '17 "or open" until '22 (DETROIT NEWS, 10/17). The WALL STREET JOURNAL's Matthew Dolan notes there are also "several major construction projects under way, including a downtown light-rail line" and a $400M mixed-use development "centered around a new home for the Red Wings." The Joe Louis Arena site "is considered prime." The Detroit City Council "must approve the development-rights deal, but any rejection could be effectively overridden" by Detroit Emergency Manager Kevyn Orr and a state oversight board. A city spokesperson said that the statue of boxer Joe Louis, which is on display in the Cobo Hall convention center, "won't be affected by the real-estate deal" (WALL STREET JOURNAL, 10/17).
