Detroit OKs change paving way for Red Wings arena

After a number of delayed votes, the Detroit City Council today unanimously approved a rezoning that's critical to the plans to build a new arena for the Detroit Red Wings.

The Ilitches' Olympia Development of Michigan agreed with the city's request for stronger assurance that the developers will follow through on commitments to redevelop one of two historic hotels near the proposed 20,000-seat arena. The city's top lawyer, Melvin (Butch) Hollowell, said Olympia agreed to be held to account to complete redevelopment of the Hotel Eddystone under court order, should the city's law department ever be forced to seek such a move, in exchange for the council's approval to tear down the adjacent Hotel Park Avenue, another abandoned historic building.

The 8-0 vote — Councilman Scott Benson was absent — came after council members defended their actions against criticism that they were obstructionists. Councilman James Tate said the council was performing its legally mandated role of ensuring that the deal represents the best possible terms Detroit could get.

"Each and every one of these council members has to do what we were put in charge legislatively to do," Tate said.

Council President Brenda Jones and others said they supported the project and the construction jobs it will bring to the city, even if there are no guarantees that a certain number of post-construction arena jobs will be designated for city residents.

Olympia had warned that additional significant delays could jeopardize the planned opening of the facility in 2017.

The council last week delayed its vote until today because council members wanted stronger assurances that Olympia will renovate the Eddystone.

The council proposed a requirement in a rezoning package needed for construction to proceed that Olympia's plans for redevelopment of the Eddystone must be approved by the city's Historic District Commission before the city would approve demolition of Park Avenue. But Olympia objected, saying that getting the commission's approval could take weeks or possibly months, adding unacceptable delays to the arena construction timetable.

Councilwoman Janee Ayers said after the meeting that, while she couldn't predict whether the Historic District Commission would approve the demolition of the Park Avenue, she said the commission "shares the same vision. They want to see Detroit moving in the right direction, so I don't anticipate it being a huge holdup."

A consultant for Olympia had urged the council to trust Olympia to follow through with the Eddystone renovation, but Jones expressed misgivings about not having the plans in writing. Olympia, which is under the umbrella of Ilitch Holdings, plans a 20,000-seat arena and new parking deck on 12 acres in the Cass Corridor. The $450-million arena is 58% publicly funded.

Jones said she will continue to hold Olympia to its word that it would continue to employ Detroiters at the arena even though no such guarantees were put in writing. She did not speak to reporters after the meeting.

Councilman Gabe Leland said the council didn't get all it wanted, but he was comfortable approving the deal.

"We were able to say we saved a building in our downtown," he said.

Councilwoman Raquel Castañeda-López, whose 6th District includes the arena area, said after the meeting that she supported the project because it will bring construction jobs to Detroiters and because Olympia agreed to measures such as setting aside percentages of new housing in the area for lower- to moderate-income people and protecting open spaces and bike lanes on Cass Avenue.

"Those are all key quality-of-life issues," she said. "It was broader than just jobs. Jobs are key, but ultimately protecting the quality of life for residents in the surrounding area should be at the forefront of the conversation."

The change in the zoning law must also be approved by the city's Downtown Development Authority. It is scheduled to take up the issue at a meeting at 3 p.m. Thursday, Hollowell told the council. The DDA has been supportive of the project, including approving a $450-million bond sale last September to fund the arena's construction.

Contact Matt Helms: 313-222-1450 or mhelms@freepress.com. Follow him on Twitter: @matthelms.