Bill Shea in Crain's Detroit Business breaks down the public portion of the new Red Wings arena and entertainment district announced last week.
General Motors Co. and other downtown corporations will be the chief funders via their property taxes of the public portion of the $650 million arena and district, he writes.
Detroit's Downtown Development Authority intends to use $284.5 million in property taxes captured within its 615-acre downtown district to pay off bonds issued by the state to build the 18,000-seat arena at Woodward Avenue and I-75.
GM has the largest taxable value within that district, and it and other corporations, along with small- and medium-sized property owners, will foot some of the arena's bill through property taxes."
The remainder of the arena costs, or $365.5 million, will be picked up by Olympia Development of Michigan, the property development arm of Mike and Marian Ilitch's $2 billion Detroit business empire that includes the Red Wings, Detroit Tigers and Little Caesars pizza chain.
