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.
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.