Joe Louis Arena demolition stalls, city pushes completion date to June

Demolition work on Joe Louis Arena is at a temporary standstill, leaving in place a skeleton of steel beams, vertical concrete and other remnants of the old sports and concert venue that could now linger until spring.

A City of Detroit spokesman said Tuesday that the demolition's anticipated completion, once set for late March, is now likely to happen in June. Demolition crews and equipment have been gone from the site for over a month.

City spokesman John Roach said the work stopped and the crews left to allow for the servicing of a utility line near the property that is being switched from the city's to DTE Energy's electrical grid. The line supplies power to buildings beyond the arena site.

In addition, a demolition subcontractor is still waiting for highly specialized equipment to arrive at the site from the West Coast. That equipment is needed to remove the arena's "elevated center spine, or 'penthouse' that spans much of the site," he said.

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Demolition of The Joe began last spring and memorably involved two giant cranes with the names and jersey numbers of retired Detroit Red Wings greats Gordie Howe and Steve Yzerman. Detroit-based Adamo Group is the primary demolition contractor.

The city owns the site and is paying for the expected $12 million cost of the demolition, which is being financed through a loan from the Michigan Strategic Fund.

Detroit City Council voted Nov. 5 to approve a redevelopment agreement for the site, including the nearby 3,200-space parking garage, with local developer Sterling Group. The deal is to net the city $14.1 million over 20 years and also save the city from needing to spend $7 million, specifically for soil remediation and repairs to the parking garage.

The Sterling Group will not publicly discuss its plans or share what it hopes to build. City documents say the developer envisions "a high density mixed-used development" there, but offer no other specifics. Mixed-use developments can typically include residential, commercial and hospitality uses.

A Sterling Group representative declined comment this week.

As part of the redevelopment deal, the Sterling Group was to receive future rights to the arena property from a former City of Detroit creditor, New York-based Financial Guaranty Insurance Co. The creditor, a bond insurer, got those rights in exchange for accepting just 13 cents on the dollar for its $1.1-billion bankruptcy claim against Detroit.

The creditor at one point considered replacing The Joe with a hotel.

The city is to hand over title to the arena site and garage once the demolition work is done.

The former home ice of the Red Wings, Joe Louis Arena opened in December 1979 and held its final event in July 2017.

Contact JC Reindl: 313-222-6631 or jcreindl@freepress.com. Follow him on Twitter @jcreindl. Read more on business and sign up for our business newsletter.