Michigan approves Detroit bonds for Red Wings arena, still won’t let Detroit spend on anything else

Need more evidence that the Detroit Red Wings arena subsidy is really, truly going ahead despite the city of Detroit being bankrupt? The state just approved the city’s development arm to sell $284.5 million in bonds for the project:

[Gov. Rick] Snyder paid a visit to the Strategic Fund board moments after it approved the deal and said the new arena is very exciting for Michigan.

“Detroit’s really on a comeback path,” he said. “I think Detroit is absolutely poised for a bright exciting future. This is just another proof point in that exercise.”…

He said he can justify the use of tax dollars on the project, given Detroit’s finances, because it is about investing in the city’s future.

“This is a catalyst project,” Snyder said. “This is going to be where the Red Wings are. Who doesn’t get fired up in Detroit about the Red Wings? Come on now, the people that are criticizing are people from outside of Michigan. This is something that is important to all of us.”

Only about 55% [UPDATE: see below] of the public bonds will be repaid by the Detroit Development Authority out of city property taxes — the rest will come from Red Wings owner Mike Ilitch — so that would keep the city’s subsidy down to a mere $156 million [UPDATE: see below]. Still, you can’t help wondering if the state government that is forcing Detroit to consider selling off the paintings in its art museum might be a bit hasty in not questioning whether a new hockey arena is the best “investment in the city’s future” that the city can come up with. Even if, say, a working school system might not get people as “fired up.” Maybe if the schools sold souvenir jerseys…

Meanwhile, it looks like somebody has decided that so long as there’s public money being handed around for stadiums, he’s going to try to get a piece of the action:

The Toronto-based owners of the Pontiac Silverdome have submitted a bid for the Wayne County justice department sites in hopes of opening a stadium for a Detroit Major League Soccer team, along with a mall, residential space and office towers.

MLS says it will “monitor” the Silverdome owner’s plans. Which, given that it’s this guy, sounds about right.

UPDATE: A new analysis by Crain’s Detroit has the city’s share of the arena project at 58%, for a total of $261.5 million, so clearly my math was a bit off. (I think I used the wrong denominator. It was early.) That’s in line with the original estimates. Also, a heckuva lot of money. I still haven’t seen any studies, even crappy ones, showing how Detroit would make that back in new economic activity from moving a hockey arena from one part of town to another. 


7 comments on “Michigan approves Detroit bonds for Red Wings arena, still won’t let Detroit spend on anything else

  1. “Detroit’s really on a comeback path,” he said. “I think Detroit is absolutely poised for a bright exciting future. This is just another proof point in that exercise.”…
    Comeback Path?!?! The largest municipality to ever declare bankruptcy in the country, and he calls Detroit on a “comeback path?!?!”
    Where are the people of Detroit with the torches and pitchforks?!
    At least in Brazil the people are fired up about their government’s asinine subsidizing of sports stadiums at the expense of social services…where is that here???

  2. That Silverdome guy is brilliant, if he can just find some use for one of these stadia that doesn’t involve pro sports teams. Here in Seattle, you might pay that much for a duplex on a 1/4 acre lot.

    Maybe Silverdome camp for the kiddos…. get them used to living in the post-apocalyptic world we’ve been seeing in The Road, etc.

  3. This is a SCAMruptcy not a Bankruptcy…but Michiganders were warned, see info at www.detroit1st.com

  4. The silverdome guy is not looking for a piece of the pie it will be funded privately.

  5. So this is going to be a catalyst project? The Renaissance Center was going to be a catalyst project. Ford Field was going to be a catalyst project. Comerica Park was going to be a catalyst project. The Super Bowl was going to be a catalyst project.

    I’d be interested in some, or any, of our ever-inquiring media would check and find out: 1.Did any of these previous catalyst projects actually do anything? and 2. If not, why is this one going to be any different?

  6. Alex, then you break out the “if not for” arguments. Imagine what depths Detroit could have sunk to if not for the nationwide focus brought about by the Renaissance Center being scenery in Grosse Pointe Blank, The Upside of Anger, or the music video “Roll On” ?

  7. “Where are the people of Detroit with the torches and pitchforks?!”

    Leaving or already left town

Leave a Reply

Your email address will not be published. Required fields are marked *

235,263 Spambots Blocked by Simple Comments

HTML tags are not allowed.