Olympia Development has hit another snag as Detroit City Council delayed another rezoning request for its new Red Wings arena.
This was the third time council members have delayed the rezoning request, which brings into question the projected 2017 opening of the Illitch’s new Red Wings arena. Obviously this raises questions of the council’s belief in the Ilitch organization.
Council members and Olympia representatives seem to be clashing over ordinance language requiring redevelopment of a nearby historic building. Council members also want to make sure the massive project results in jobs for Detroiters. Olympia officials said that the city’s continued stall tactics and last-minute word changes – could jeopardize the timeline of arena construction.
“This is potentially a setback for the entire project,” John Graves, a consultant to Olympia, told council members Monday.
The $450 million arena is supposed to be the cornerstone of Olympia’s goal to makeover 45 blocks of the city between downtown and Midtown that will include retail, residential and offices. Olympia is the development arm of the billionaire Ilitch family domain of sports teams, entertainment facilities and Little Caesars Pizza.
The hold-up seems to be the language that involves the restoration of the historical Eddystone Hotel, which presently sits empty. Also in question is the demolition of the former Park Avenue/Harbor Lights building.
Olympia has already secured $250 million in tax dollars to help pay for the arena and has spent a reported $48 million quietly acquiring land for the arena and the surrounding areas. Everything was on schedule until the zoning change request, which needs the City Council’s approval. Since then, it has been a series of roadblocks.
“I have been here 10 years. I have seen trust come and go … but what I do trust is seeing something in writing,” said Council President Brenda Jones. “There’s nothing in the contract … that protects Detroit residents to give jobs once the executive order is filled and the arena is built.”
She is not the only one with concerns. Councilman Scott Benson said to the Detroit News that Olympia privately asked the council to delay its vote, because the developer had reservations about the ordinance. They want to continue talks with Detroit lawyers in order to find a common ground.
Benson also acknowledged that there is not a ton of wiggle room if they want to get the project off the ground in a timely manner. Benson said the way to go may be a legally binding memorandum that will give Olympia the time it needs, yet gives city council the comfort level to move forward.
“Now it’s time for people to sit down, sharpen their pencils and come back with something everyone can agree to,” Benson said. “I don’t know if it’s going to be the middle ground or skewed toward the City Council feeling good or protected, but we need to find something everyone can agree to and we can move this project forward.”
Zack Burgess is an award winning journalist. He is the Director/Owner of OFF WOODWARD MEDIA, LLC, where he works as a writer, editor and communications specialist. His work can be seen at zackburgess.com. Twitter: @zackburgess1
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