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House Passes Bill To Help Build New Red Wings Arena

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WWJ Photo/S.L. Stoddart

WWJ Photo/S.L. Stoddart

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DETROIT (WWJ/AP) – Michigan’s House approved a bill that could lead to the Detroit Red Wings finally getting a new home.

The bill was passed Thursday and now goes to Republican Gov. Rick Snyder for his signature. State senators approved the legislation last week.

Red Wings’ owner Mike Ilitch currently leases aging Joe Louis Arena in downtown Detroit. Last week, he announced plans for a $650 million multi-use development, which would include an events center where hockey games could be held.

The bill would allow tax dollars collected by Detroit’s Downtown Development Authority to be used for the project. Already, the DDA has been allowed for nearly two decades to pay down Detroit’s general obligation bonds with about $12.8 million a year that otherwise would have gone to education, Senate Democratic leader Gretchen Whitmer has said.

“Funding a private stadium with taxpayer dollars cannot be our priority at this time,” House Democratic Caucus leaders said Thursday in a release. “The money that would go to a Red Wings stadium comes from local property taxes and millages that would otherwise go to the School Aid Fund and we are against the continuation of that transfer.”

Supporters of the stadium bill claim it will create upward of 8,300 new construction jobs and pump $1 billion into Michigan’s economy.

While the exact location of the district has not been determined, the Ilitch team says 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.”

Detroit could use the economic help. The city has a deficit of more than $200 million and could come under state oversight following a review by the state Treasurer’s office.

“This is an exciting opportunity to provide an economic boost to the metro Detroit area without a tax increase,” said the bill’s sponsor, Rep. John Walsh. Walsh is a Republican from Livonia, west of Detroit. “This is a great example of how the private sector can partner with the public sector to continue the economic reinvention we have been driving for the past two years.”

TM and © Copyright 2012 CBS Radio Inc. and its relevant subsidiaries. CBS RADIO and EYE Logo TM and Copyright 2012 CBS Broadcasting Inc. Used under license. All Rights Reserved. This material may not be published, broadcast, rewritten or redistributed. The Associated Press contributed to this report.

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