State Approves Bonds For New Red Wings Arena

By Edward Cardenas

DETROIT (CBS Detroit) - The Michigan Economic Development Corporation announced Wednesday the Michigan Strategic Fund approval of issuance of $450 million in bonds for the new Red Wings arena in Detroit.

The Michigan Strategic Fund authorized the issuance of private activity bonds to finance construction of a new entertainment and commercial district in Detroit, including a multipurpose events center that will serve as the future home of the Detroit Red Wings.

"Today's actions mean well-paying jobs for Michigan families," said Governor Rick Snyder, said in a release. "In addition to permanent jobs, these investments will generate thousands of construction jobs, including 8,000 alone for Detroit's new crown jewel."

The Events Center Project is to be owned by the City of Detroit Downtown Development Authority and operated by Olympic Development of Michigan Events Center, LLC. 

The project agreement requires at least half of the jobs created to be filled by Detroit residents, according to state officials. Approximately 1,100 permanent jobs will be created once the Events Center opens.

The Ilitches also anticipate on spending an additional $200 million on commerical, entertainment and residential venues in five neighborhoods that will be built around the stadium, Fox Theatre and Comerica Park. 

Officials with Olympia Development are expected to provide additional details of the facility Thursday at a meeting of the Detroit Planning Commission.

The arena is expected to open in 2017.

To see artist renderings of the stadium, and development areas, click here.