The Detroit City Council won't approve a key piece of the financing plan for the proposed $600 million Detroit Red Wings arena and surrounding entertainment district until it sees a concrete agreement between the hockey team's owners and the city's Downtown Development Authority.

The council will vote on, or allow to die, a proposal to expand the current 615-acre DDA property taxing district by about 40 blocks north of the Fisher Freeway between Grand River and Woodward avenues to encompass the arena district site, said Marcel Hurt, chief of staff for council President Saunteel Jenkins.

The council next meets Dec. 17.

What the council wants to see, Hurt said, is the final concession agreement between the DDA, which will own the arena, and, the real estate arm of Red Wings owners Mike and Marian Ilitch's $2 billion Detroit business holdings that also include theand thepizza chain.

A draft concession agreement, absent timelines and other details, was made public in June. It would have Olympia operate the venue for 35 years, with 12 five-year renewal options.

It's unclear when the agreement might be finalized and made available to the City Council.

"Negotiations on the (concession management agreement) are continuing," said Robert Rossbach, a spokesman for theThe DEGC, the city's quasi-public economic development arm, is contracted to staff the public authorities handling the arena project.

John Hahn, vice president of corporate communications for, confirmed that talks on the agreement are still underway, but did not have a timeline for it to be completed.

If the council allows the DDA proposal to die, it would have to be reintroduced to the new council in January, Hurt said.

The council also wants more details on the plans for Joe Louis Arena, the city-owned venue leased to the Red Wings since 1979, Hurt said.

The DDA's board, Olympia and the Wayne County Commission have approved the DDA expansion.

In addition to the boundary expansion, the DDA has requested City Council approval of land transfers to the DDA of parcels in the arena district owned by the city and its

Olympia paid an estimated $50 million for half the land needed for the arena district, according to a Nov. 1 cost-benefit analysis provided to the council by its Legislative Policy Division.

That analysis recommended the council approve the DDA requests after the final concession management agreement is provided to the council, certain income tax questions related to Olympia and Red Wings employees are answered, and issues related to the future of Joe Louis Arena are considered.

A nonbinding memorandum of understanding involving the DDA, Olympia and Wayne County that outlines the project and its financing was approved in a unanimous voice vote by the DDA board in June.

The memorandum outlines a framework of the project, but absent are key details yet to be worked out, such as a timeline.

Wayne County last month approved an inter-government agreement with the DDA that allocates 1.5 mills of county property tax capture in the expanded district to repayment of the arena bonds, said Bryce Kelley, director of the

Based on $200 million in ancillary development around the arena, that 1.5 million eventually would total up to $4.75 million, Kelly said, and the money would be paid over the life of the 30-year bonds.

Property taxes captured by the DDA in its district are entirely on the value of new development and by law can be used only within that district for economic development.

The DDA isn't part of the city's bankruptcy filing, and its finances are unaffected by the situation, according to Emergency Manager Kevyn Orr's office. No general fund money is being used for the project.

The state'sin July approved the sale of $450 million in 30-year tax-exempt private activity bonds to pay for construction of the arena itself.

The bonds will be repaid by the DDA and county property tax capture, $231 million in school taxes within the DDA district that the Legislature in December 2012 approved for the project's use, and $11.5 million paid annually by Olympia.

The state reimburses the schools for the diverted money, the DDA has said.

The 650,000-square-foot hockey arena, which would be finished by 2017, would seat 18,000 and have an attached 500-space parking garage, 10,000 square feet of retail space anchored by a Red Wings merchandise store, restaurants and other retail, according to the project plan.

Olympia estimates a new arena will have 50 more non-hockey events than Joe Louis does now.

The Ilitches and private entities are estimated to pay $177 million for the ancillary development, with another $23 million coming from property taxes in the DDA district, according to the plans.

Under the deal, Olympia keeps all revenue generated by the arena, including concessions and parking, and all money from any naming rights deals.