Other highlights from the emails released this month by the Michigan Economic Development Corp. after a Freedom of Information Act request by Crain's:



• A participant, by phone, in the legislative discussions about the arena project was Steve Kantor, managing director in the public finance arm of New York City-based First Southwest Co.

Kantor deferred all comment to the state and Ilitch representatives, and declined to say which side retained First Southwest, an investment bank specializing in public finance for major infrastructure projects including sports arenas.



Kantor's name is listed in the documents amid Ilitch staffers.

• A July 18 email from Mark Morante, the MEDC's senior vice president of program management, capital markets and incentives group, to Detroit Economic Growth Corp. CEO George Jackson and Brian Holdwick, the DEGC's executive vice president of business development, asks to confirm $2 million in funding for the project. The funding is requested from the quasi-public DEGC and $2 million from Wayne County.



Wayne County Executive Robert Ficano has said for several years that county government would aid the arena project.

• On Dec. 3, Morante emailed Michael Shore, the MEDC's managing director of communications, to say that the arena district legislation effort needed to be kept a "governor-level issue" and "not an MEDC project."

-- Bill Shea

Q&A: The proposal

Crain's business of sports reporter Bill Shea analyzes the proposal that a proposed Detroit Red Wings arena could be state owned.Based on what I've been told and researched, they're interested in the state, through the Michigan Strategic Fund, owning a new hockey arena for the Ilitch-owned Detroit Red Wings.Ownership doesn't mean the state pays for it. Taxpayers at the local, county and/or state level could fund some, most or none of the project. It's much too soon to say. No details about financing have been disclosed, and it's doubtful if the Ilitches have anything lined up except for some ideas on paper. However, we do know that the state Legislature last month approved shifting $12.8 million in from a specific Detroit Economic Development Corp. fund from paying down Detroit Public Schools debt (since paid off) to being earmarked for bond retirement on the arena project. The money could potentially go toward MSF bonds issued on behalf of the Ilitches to pay for the arena's construction.The simplest is answer is taxes. If the state owns the arena, they won't be on the hook for property taxes. That could mean $1 million or more yearly the Ilitches won't have to pay (and that local government won't get). That said, they will likely have lease payments, or some type of rental agreement. Again, sports arena financing deals are complex and no two are alike, so we have no idea yet how the deal will play out. Another reason to not own the arena is that they won't be stuck with it years down the road when it comes time for another building. Why the Michigan Strategic Fund? The MSF is the state's utility infielder of economic development tools. It can own property, and it theoretically could issue low-rate private activity bonds on behalf of the Ilitches.Again, we don't know what the deal will be, but the only reason for a team to want a new building is to make more money. Sports economists have told Crain's that a new arena could be worth $5 million to $8 million annually in new revenue. Arena deals usually have some revenue go to a capital improvements/repair fund for the building, too.The city owns it, and could sell it to a developer. I've written in the past that its desirable riverfront location could mean it's torn down for new development,ï¿½ï¿½ˆ for something that's not a windowless concrete box facing the water. The location, location, location should mean it doesn't suffer the same fate as the last ex-Ilitch sports venue: Tiger Stadium, which was leveled and now sits undeveloped. Joe Louis has history, but not nearly as much history because it opened in 1979.