DETROIT (CBS Detroit) – One of two historic hotels near the site of the new Detroit Red Wings arena will be imploded next week.

The Park Avenue Hotel, built in the 1920s and abandoned since 2003, will be demolished Saturday, July 11, at 8 a.m, according to a report by the Detroit News.

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Olympia Development has said demolition of the hotel is needed in order to build a high-capacity loading bay for the arena, located on the west side of Woodward Avenue, just north of I-75.

In accordance with an agreement with the city, the long-shuttered Eddystone Hotel — located just across the street — will be saved and renovated to include apartments and first-floor retail space.

Doug Kuiper, Vice President of Corporate Communications for Ilitch Holdings, said the implosion method saves time and reduces neighborhood impact.

“All work will follow best practices and city requirements, and we will work closely with residents, businesses and other organizations to ensure a safe demolition with minimal impact on the community,” Kuiper said, in a statement. “This event enables us to continue the rapid progress we’re making on opening an incredible new arena – along with retail, residential and office developments – that Detroiters can enjoy and be proud of.”

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The Detroit City Council in the spring approved a rezoning plan to allow the project, after months of debate and multiple delays. Then, last month, the Detroit Historic District Commission voted 3-1 in favor of razing the Park Avenue.

Crews have since been taking out dirt from the arena site.

Kuiper said construction of deep foundations began on the site last week, and excavation is scheduled to be complete at the end of July.

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The $450 million arena with 20,000 seats is expected to open in September, 2017. The project — dubbed “District Detroit” — includes a total of $650 million in arena costs and retail, residential and restaurant development around the arena, over 45 acres.