Another report from the Detroit Free Press Thursday afternoon said that Olympia Entertainment actually owes $2.1 million in unpaid property taxes on Cobo Arena and Joe Louis Arena.
The records came to light at the same time that legislation the Ilitch family said is needed to move forward on plans for a $650 million entertainment district and new Red Wings arena in downtown Detroit and is now headed to Gov. Rick Snyder's desk for signing.
Debate on the legislation, known as House Bill 5463, brought about the Ilitch family's financial obligations, the Free Press reports. Earlier Thursday, the Free Press reported that documents show unpaid taxes for Joe Louis Arena and Cobo Arena totaling $971,482.52, dating back to 2009. An updated report now puts the amount owed at $2,095,592.49, dating back to 2006, with penalties and interest.
The records came to light at the same time that legislation the Ilitch family said is needed to move forward on plans for a $650 million entertainment district and new Red Wings arena in downtown Detroit and is now headed to Gov. Rick Snyder's desk for signing.
Debate on the legislation, known as House Bill 5463, brought about the Ilitch family's financial obligations, the Free Press reports. Earlier Thursday, the Free Press reported that documents show unpaid taxes for Joe Louis Arena and Cobo Arena totaling $971,482.52, dating back to 2009. An updated report now puts the amount owed at $2,095,592.49, dating back to 2006, with penalties and interest.
It is unclear why the company has not paid the taxes, nor is it clear why the city has not penalized Olympia Entertainment for the delinquency.
The Detroit Economic Growth Corporation and Olympia Entertainment issued this statement: "The lease between the City of Detroit and Olympia Entertainment for Joe Louis Arena expired in June 2010. A new lease is being discussed and the intent of both parties has been to have the taxes in question reconciled when the new lease is renewed."
Legislation for the new arena and entertainment district passed by a 58-49 vote on Thursday. Some lawmakers on both sides of the aisle remained leery of the project's use of public funds.
An exact location has not been named for the arena and district, which would include apartments and retail, but there is some speculation that it will be somewhere in the 10-block area between Midtown and downtown where development has been scant.
Olympia Entertainment says the new district would create an estimated 5,500 jobs for the events center and about 8,300 new positions for the residential and commercial mixed-use district, and would have an economic impact of $1.8 billion.
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