Detroit's Cobo Center Considers Another Possible Expansion
DETROIT (WWJ/AP) - Downtown Detroit's Cobo Center is considering another possible major expansion and is taking steps to shore up its funding.
A tax subsidy for Cobo ends in six years and the regional authority that controls Cobo must find another source for that money, which currently is $7 million a year, according to a report in The Detroit News. Cobo has an annual operating budget of about $16 million.
The newspaper says one idea being explored is selling naming rights. Another option is to become a partner in the redevelopment of Joe Louis Arena, which is being left by the Red Wings. Other land deals could include a push to reconnect the Joe Louis site to downtown.
Cobo hosts many major events, including the North American International Auto Show that's taking place this month.
As news of a possible Cobo expansion spread, Larry Alexander, Chairman of the Detroit Regional Convention Facility Authority, issued a statement calling the report "very premature."
"We have no active plans for expansion or for seeking naming rights at this time," Alexander said. "As responsible stewards of the taxpayer dollar, we have identified a number of strategic initiatives that secure the long-term viability of Cobo Center. This process necessitates that we continue to make prudent fiduciary decisions including updating our strategic plan based on careful analysis of all available options in the best interests of the taxpayer and our customers. Only when that plan is unanimously approved will we execute it."
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