The Detroit city filed for bankruptcy in 2013. Once one of the biggest economic cities of USA, Detroit started to collapse after an auto industry started to move away from there. At the same time many people lost their jobs and the city’s crime rate started to grow. The city officially quit bankruptcy in December 2014 but they needed to find a way to avoid that in future.
In May 2012, Detroit Red Wings started to look for models for their new arena which will replace the 33-year-old Joe Louis Arena as their home ice in 2017-2018 season. This new arena will be owned by the city’s Downtown Development Authority and its land will be leased to Olympia Entertainment (owned by Red Wings owners). Red wings will rent it for free for a long term.
The district will also contain restaurants, shops, bars and offices. Olympia promises that new Arena district project will provide major economic impact for the city of Detroit.
Arena will be funded mainly by private investors. However, there will be some amount of tax money too. Olympia has promised that 51 percent of the construction work on the site will be done by Detroiters.
According to Olympia, the project will have an economic impact of at least $1.8 billion, while creating thousands of jobs, some of which will be permanent. The arena alone will create 8,300 construction and related jobs, in addition to 1,100 permanent jobs, according to the company. – Mlive, David Muller