The Joe currently hosts 70 events annually and it's obsolete. With Olympia controlling all parking and concession sales at the new arena, they'll be able to land basically any event they want.(Palace will be hurt the most from this) All the concerts, rodeos, ice shows, college hockey/basketball etc... Remember, Tom Wilson is running the show and the Palace was designed largely around his input. He's got plenty of experience in getting an arena built to maximize profits.
Bill Shea(Crain's Detroit Business) had a great break down on where the money is coming from. The tax money for the new arena is property tax collected by the DDA on the value of the new development in the new arena district. And the property tax collected by the DDA in that zone is not a new tax. It already is on the books. Homeowners are unaffected. The DDA tax is not a city general fund tax, and by law cannot be used for pensions, or other debt liabilities. Improvements only. Basically the DDA is sepatate from the regular Detroit government and is not bankrupt. In fact, the city owes the DDA $40M in bankruptcy filing docs.
This project is more than building a new arena. If it was just a new arena, it would have never been approved. It all started with Gilbert and Ilitch but because of them more resedential real estate investors are flocking into the city. This will be a 3-5 year plan. I remember when the original plans were put out, thinking the plans were a "drop in the bucket" and a good "first step" (an arena, an office building, maybe a couple parking garages, a few rehabs of some old buldings around the arena). Instead, it seems like they took the 45 blocks and came up with plans to improve each of them. I don't see how anyone can be unhappy.
Except, there's big time incentive for the Ilitchs' and the city for this plan to work. This has been in the works for over 20 years. It will enhance development connecting midtown to downtown and with the M-1 rail/Gilbert-ville being associated you can bet the city will benefit. The arena alone, will give the city between 100-150(possibly more in the future if the Pistons come) events annually they can capture income tax money on.
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The Joe currently hosts 70 events annually and it's obsolete. With Olympia controlling all parking and concession sales at the new arena, they'll be able to land basically any event they want.(Palace will be hurt the most from this) All the concerts, rodeos, ice shows, college hockey/basketball etc... Remember, Tom Wilson is running the show and the Palace was designed largely around his input. He's got plenty of experience in getting an arena built to maximize profits.
The point was it's gonna be 2,000 more seats than it was originally planned.
I'm sure you and all your scepticism have done way more for the city than Mike Ilitch.
Bill Shea(Crain's Detroit Business) had a great break down on where the money is coming from. The tax money for the new arena is property tax collected by the DDA on the value of the new development in the new arena district. And the property tax collected by the DDA in that zone is not a new tax. It already is on the books. Homeowners are unaffected. The DDA tax is not a city general fund tax, and by law cannot be used for pensions, or other debt liabilities. Improvements only. Basically the DDA is sepatate from the regular Detroit government and is not bankrupt. In fact, the city owes the DDA $40M in bankruptcy filing docs.
The most important news for Wings fans is the change from 18 to 20 thousand seats. That should help keep prices down.
It will break ground on July 28th.
http://m-1rail.com/m%E2%80%901-rail-streetcar-construction-will-begin-m…
Here's the construction schedule:
http://m-1rail.com/wp-content/uploads/2013/08/Zone7-12MOTPresentation.7…
It has backing from Gilbert, Ilitch, the city and state.
Ann Arbor to Detroit rail could happen in 2-3 years...
http://metrotimes.com/news/news-features/ann-arbor-to-detroit-rail-could-happen-in-2-3-years-1.1708594
This project is more than building a new arena. If it was just a new arena, it would have never been approved. It all started with Gilbert and Ilitch but because of them more resedential real estate investors are flocking into the city. This will be a 3-5 year plan. I remember when the original plans were put out, thinking the plans were a "drop in the bucket" and a good "first step" (an arena, an office building, maybe a couple parking garages, a few rehabs of some old buldings around the arena). Instead, it seems like they took the 45 blocks and came up with plans to improve each of them. I don't see how anyone can be unhappy.
Except, there's big time incentive for the Ilitchs' and the city for this plan to work. This has been in the works for over 20 years. It will enhance development connecting midtown to downtown and with the M-1 rail/Gilbert-ville being associated you can bet the city will benefit. The arena alone, will give the city between 100-150(possibly more in the future if the Pistons come) events annually they can capture income tax money on.
Or maybe we should just let the area keep looking like this: http://www.mlive.com/business/detroit/index.ssf/2014/04/olympia_picks_general_contract.html