LANSING – The project tied to a new arena for the Detroit Red Wings in Detroit was approved by the Michigan Strategic Fund Board on Wednesday, with some words of encouragement from Governor Rick Snyder.
The project, known as the Catalyst Development Project, includes arena where the Red Wings will play as well as a mixed-use ancillary development and is intended to tie Midtown and Downtown Detroit, according to Snyder and members of the Detroit Downtown Development Authority.
“There are so many other good things that go with this arena, if you think about this as an opportunity to link Midtown and Downtown and make that connection happen in a very positive way,” said Snyder. “Detroit’s really on a comeback path and the exciting part is this is another big step in it.”
The arena itself will be owned by the DDA, along with the attached parking garage, and will enter into a concession management agreement with the Olympia Development of Michigan.
The project is expected to cost about $650 million, with $367 million expected to come from investments from private sources and $283 million from public sources. The Strategic Fund board approved an inducement resolution for the issuance of $450 million in private bonds to help pay for the project.
The construction of the arena is expected to create about 2,900 construction jobs, and the construction of the development area around the arena is expected to create about 4,380 construction jobs. According to the Olympia Development of Michigan employees at the board meeting, the arena would create over 1,000 jobs, which is about 77 percent more than the number of jobs currently held at Joe Louis Arena, where the Red Wings began playing during the 1979-80 season.
The location of the arena will be in the area north of I-75 and west of Woodward, largely empty lots.
Along with the Catalyst Development Project, the Strategic Fund board also approved two other projects; one in Lansing, the other in St. Joseph. Combined, the three projects are projected to bring in $767 million in new investments and create almost 5,000 jobs, according to a statement from Snyder’s office.
The MSF approved two grants to support the expansion of the Jackson National Life Insurance Company headquarters in Lansing, which is estimated to cost $100 million. The expansion includes a connector from the existing building to the new office complex, warehouse and print center for the company.
The board also approved funds for infrastructure improvements for the Harbor Village at Harbor Shores, LLC in St. Joseph.
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