Brian Manzullo, John Gallagher, and Joe Guillen

Detroit Free Press

The Detroit Pistons are coming back downtown.

Detroit Pistons Owner Tom Gores, Ilitch Holdings CEO Christopher Ilitch and Detroit Mayor Mike Duggan announced the agreements during a press conference today at Cass Tech High School.

“Tom Gores and the Pistons will contribute tremendously toward the incredible, positive momentum underway in Detroit, making our city stronger,” Ilitch said.

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The Pistons are currently playing their 29th and final season in Oakland County. They will honor players and championship teams the remainder of this season. Oakland County executive L. Brooks Patterson said in response, "We wish the Pistons well. Thanks for all the memories."

Gores and the Ilitches have also agreed to create a joint entertainment venture to manage their existing venues: Little Caesars Arena, Comerica Park, Fox Theatre, City Theatre, The Palace of Auburn Hills, DTE Energy Music Theatre, Meadow Brook Amphitheatre and Freedom Hill Amphitheatre.

“This is a historic day for our franchise, and for the City of Detroit,” Gores said. "Detroit is rising, reinventing itself. The Pistons are doing the same. We’re in this together, and we couldn’t be more excited about that.”

With the move, Detroit will be the only North American city to have each of the four major professional sports leagues within blocks in its urban core.

“This is further proof of Detroit’s resurgence and we look forward to welcoming the Pistons in their new home,” Duggan said.

The Pistons’ move downtown is expected to add an additional public investment of $34.5 million to the cost of Little Caesars Arena. Duggan said half that cost will be paid for by refinancing existing DDA bonds at a lower interest rate. The remainder of the city's contribution will be paid for by extending the term of these bonds by an additional three years, Duggan said.

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The Detroit Downtown Development Authority would generate that money by refinancing $250 million in bonds previously issued to help pay for the arena’s construction. The arena bonds are to be paid off using property tax collections captured for downtown economic development. No funding from the city of Detroit's general fund will be used.

The $34.5 million from the bond refinancing would pay for new features at Little Caesars Arena for the Pistons – NBA locker rooms, training facilities and rebranding the arena for both teams.

It is possible the DDA will issue taxable bonds of up to $55 million for a Pistons practice facility. The Pistons would repay those bonds.

More on the financials

The DDA unanimously approved the Pistons' memo of understanding. Detroit Mayor Mike Duggan said he hopes the final financial details will be completed by March.

The practice facility could be built in one of several locations. Financing details will depend on where the facility is built.

The Pistons are promising to meet with neighborhood advisory groups to accommodate any concerns with a move downtown.

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It was announced the Pistons have agreed to donate $2.5 million over six years to create more than 60 basketball facilities in Detroit. The Pistons also agreed to give 20,000 tickets per year to city residents and youths as part of community benefits for the move downtown.

The DDA hopes to have all approvals completed by March. Both the Detroit City Council and the Michigan Strategic Fund will have to approve the deal. "It's going to be a busy first quarter next year," Duggan quipped at the meeting.

Gores, Duggan and Ilitch are expected to be on hand this afternoon at Cass Tech High School, as the Pistons are set to confirm that the NBA team will play at Little Caesars Arena, which is expected to be completed by the 2017-18 NBA and NHL seasons.

Under the agreement, the Pistons will also agree to:

Employ Detroit residents in 51% of the construction jobs for their practice facility

Award at least 30% of the value of all construction contracts to Detroit-based companies.

Partner with the Mayor’s Office to provide mentorship opportunities for young Detroiters.

Host free youth basketball camps, clinics, and other events to promote youth basketball in Detroit.

Watch the announcement

More to come.

Press conference tweets

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Some more facts about the move

• The Detroit Pistons' move to Little Caesars Arena downtown will generate nearly $600 million in economic impact for the city and create more than 2,000 direct and indirect jobs, an analysis of the move by University of Michigan sports experts predicts.

• The Pistons will share the building with the Detroit Red Wings, who are leaving Joe Louis Arena after this season. One of the Pistons' main concerns in the negotiations was that they would be considered equals in the arena, rather than tenants.

• The deal between Pistons owner Gores and the Wings-owning Ilitch family likely will include the sides’ entertainment arms partnering — Gores’ Palace Sports & Entertainment and the Ilitches’ Olympia Entertainment.