The Craig Fahle Show

What About That $200 Million In Spinoff Development, Olympia?

Wednesday February 19, 2014

Ryan Felton, of the Metro Times, swung by the studio to discuss his latest piece about the new Detroit Red Wings arena and the potential $200 million in spinoff development claims. Felton writes:

But it’s the second half to the puzzle, the $200 million in spinoff development, that has received little attention since the deal first surfaced in late 2012.

Under the deal, the Downtown Development Authority, a city entity staffed by the quasi-public Detroit Economic Growth Corporation, would own the arena and lease it to Olympia. DDA spokesman Bob Rossbach tells Metro Times that, in its agreement with the authority, Olympia would either invest or “cause to invest” at least $200 million in the area around the arena.

Rossbach says the spinoff development could include housing, office, retail, restaurants and entertainment — anything, really — and would be fully constructed by five years after the date of the arena’s first event. He says Olympia’s the logical party to ask what’s planned since it’s the company’s responsibility to “create those developments,” but the company is still planning.

“It is still too early in the process and the information you are requesting is not finalized,” Olympia said in response to questions about tenants, specific projects or designs, parking, and whether private investors will be sought for the development area.

Read the whole story here.

Map of the new area development area.