Breaking Down The $650 Million Detroit Red Wings Arena

By mousa

With recent news of the incredible and impressive new Red Wings Arena to hit Midtown Detroit, it has left many wondering one question: Where is the money coming from?

The new downtown development, constructed by Olympia Development and the Illich family, is set to cost nearly $650 million. For a closer look at the money dynamics of this extreme project, here is a breakdown of where the money is being allocated and taken:

$450 million – The cost to build the new Red Wings Arena

$200 million – The cost to “revamp” the surrounding area of midtown, including roads, lights, buildings, homes, and businesses

  • $365.5 million will be invested from private funds
  • $284.5 million will be invested from public funds

None of this money will be coming out of the struggling general funds from the Detroit government – The money is finding its way through tax financing

  • $15 million will be invested from the DDA and state legislation, per year
  • $12.8 million will be invested from the public funding area that is allocated for property taxes, per year
  • $2 million will be invested from the DDA directly
  • $11.5 million will be invested from Olympia Entertainment directly

The hope for Olympia Entertainment is that while they spend their time rebuilding this area of the city, more private investors will come forward. Plans to improve the area around the Detroit River, Cobo Center, and several other locations, have already started discussing future plans, in the mist of this recent news. Taxpayers can feel secure in knowing that the majority of their funds will be segregated towards improving roads, light fixtures, and other public use elements. The development project is projected to bring in over 8,000 jobs for the entire surrounding area. The state of Michigan is expected to feel the difference with nearly a $2 billion revenue increase.

With new neighborhoods, restaurants, businesses, and a thriving economy, many are booming and ecstatic about this Detroit development. Detroit mogul Dan Gilbert has thrown his support to Olympia Entertainment and the Illich family, by stating, “The thoughtful and impressive design will be transformative for downtown…this is the single most exciting and optimistic time for the Woodward corridor and all of downtown Detroit.”

The new Red Wings arena is scheduled to open in 2017, along with the mixed-use development areas surrounding the Midtown location. With the help of state appointment bonds and private funding, Olympia Entertainment has their financials for this project squared away and ready to go.

*Image Courtesy Of Dennis Allen Renderings from
Next Post

    Latest Posts

    The words 2024 Trends over a green background with a magnifying glass

    Navigating the Detroit Real Estate Trends in 2024

    Read Full Post
    Young couple dreaming of their new home grinning as they hold up a builders ruler shaped as the frame of a house

    How To Keep Your Homes Filled With Tenants

    Read Full Post
    Businessman handing someone a key with city overlay

    What Does Turnkey Property Management Do?

    Read Full Post
    A man conducting research on a laptop and holding documents

    Detroit Property Manager Tips: The Power of Location

    Read Full Post

    Subscribe To
    Receive The Latest News

    Similar Posts

    By mousa  |  May 25 2015

    How To Write Rental Ads That Will Keep People Knocking At Your Door

    There is a fine balance between both the logical and emotional sides of our brain when are looking a...

    By mousa  |  Feb 21 2015

    Tiny Homes Have Hit Detroit

    Engineers and innovators have started becoming creative when attempting to tackle Detroit’s housing ...

    By mousa  |  Jul 12 2014

    The Week In Detroit: Commercial Property Purchases

    Over the past few weeks, it’s been challenge to open up the paper and not see someone snatching up p...