Red Wings Face June 30 Deadline To Decide On Arena Renovation
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Red Wings Owner Must Decide Whether To
Renovate Joe Louis Arena Or Build New Venue |
The "ongoing saga of whether to renovate Joe Louis Arena or build a new home elsewhere in the city for the Detroit Red Wings has entered its version of hockey's third period," as Red Wings Owner Mike Ilitch "has until June 30 to tell Detroit if he will modernize the 30-year-old, city-owned arena or construct a new venue that likely would cost" $200-300M, according to Bill Shea of CRAIN'S DETROIT BUSINESS. Talks between the Ilitch family and the Detroit Economic Growth Corp. have been "ongoing for several years" regarding the arena, and "adding spice to the drama is that the expiring Joe Louis lease ... is part of the Cobo Arena master lease." Under the Red Wings' lease, the city of Detroit "provides free police and landscaping services, including snow removal, for both the Joe Louis Arena and Cobo Arena, and up to $500,000 annually for capital improvements" for Joe Louis Arena. The Ilitch family pays "property taxes on city-owned Joe Louis, but they are capped at $252,000 annually," and without the cap, the tax would be about $1M. The lease deal also stipulates that a new arena "would mean the city could charge for police and snow services and collect full property taxes on the venue," and the city also "could lose its ticket, concession and suites surcharges." Shea notes Cobo Center has seen its "own drama in recent weeks as debate rages over a plan to transfer the city-owned venue to a regional authority" (CRAIN'S DETROIT BUSINESS, 3/23 issue). YAHOO SPORTS' Greg Wyshynski wrote the "two most intriguing factors at play in potentially leaving" Joe Louis Arena are "what the city gains and loses if the Wings move to a new arena, and how the Ilitch family would finance such a venture when it's hard to borrow money" (SPORTS.YAHOO.com, 3/23).
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