Ilitch Announces New Arena Plans
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12-11-2012, 03:50 PM
Join Date: Apr 2011
Originally Posted by
Well, if you consider the cost to build some other venues in the recent past:
Prudential Center: $375 in 2007
Jobing: $220 in 2003 ($278 in 2012 dollars)
Xcel: $130 million, ($175 million in 2012 dollars)
Consol Energy: $321 million in 2010 ($350 million in 2012 dollars)
These are all multipurpose arenas.
What are you getting for the additional $300 MM?
The project is more than a multipurpose arena, it is an entertainment district. Ilitch could build a multipurpose arena only, at a much lower cost, and the Wings likely would not see a drop in attendance (assuming the on ice product stays competitive). However, that type of project isn't what Detroit needs, and it isn't the vision that Ilitch has for the arena. Here is a quote from the Detroit Free Press on the issue:
"It's always been my dream to once again see a vibrant downtown Detroit," said Mike Ilitch, chairman of Ilitch Holdings Inc. and owner of the Red Wings and Detroit Tigers, in a news release. "From the time we bought the Fox Theatre, I could envision a downtown where the streets were bustling and people were energized. It's been a slow process at times, but we're getting there now and a lot of great people are coming together to make it happen. It's going to happen and I want to keep us moving toward that vision."
The Senate committee is considering changes to the Downtown Development Authority Act to provide for the development. More details are pending.
While the exact location of the district has not been determined, it will be strategically located to serve some of the most underutilized areas in Detroit's downtown core, strengthening the link between Detroit's existing assets through a continuous, walkable environment connecting one district to the next and serving to improve the quality of life for residents and visitors alike, the news release says.
Only building a multipurpose arena would be a missed opportunity for a city that desperately needs development.
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