8.15.07Lease up for Cobo, the Joe in 2009
It's Detroit law department's view; Tiger Stadium plan due Aug. 31.
David Josar / The Detroit News
Olympia Arenas, the company controlled by Mike Ilitch and his family, has until June 2009 to make a decision on whether it will extend its lucrative lease of the Joe Louis and Cobo arenas, according to a recent law department opinion.
The city law department delved into the issue last month at the request of the auditor general, said city spokesman James Canning.
Earlier this year, the City Council's fiscal analyst said the lease expired in 2008, and Olympia had to tell Detroit this summer what it planned to do.
The law department, after reviewing the lease and its sub-agreements which total more than 100 pages, decided the agreement runs through June 30, 2010, and Olympia has until June 30, 2009, to decide whether it will continue operating and using the venues.
The law department opinion brought relief to Red Wings fans who were unsure how long the team would play in Joe Louis Arena.
"At least we know we can stop gossiping for a couple years as to what will happen with the Red Wings," said Yancy Hunter, 43, during lunch at the Hockeytown Cafe on Tuesday.
"Not much is going on with the other teams right now, so this is becoming gossip fodder for us. Will The Joe be replaced? At least not now. Now all we have to worry about is Tiger Stadium."
A consortium led by legendary sportscaster Ernie Harwell is working against an October deadline to come up with a plan that could preserve much of Tiger Stadium, which has been virtually unused since 1999. The team starting playing in Comerica Park in 2000.
Grosse Pointe attorney Gary Spicer, who is working with Harwell, said the city will have Harwell's complete plan by Aug. 31.
Harwell, who was the voice of the Tigers for more than 40 years, is touting a concept that will incorporate museums, a 10,000-seat ball field, residential lofts and commercial development for the corner of Michigan and Trumbull.
"Things are moving forward," said Spicer.
The City Council voted last month on a plan that would mean demolition could begin in October, but George Jackson, the city's head of economic development, said a viable redevelopment plan with solid financing could keep the stadium standing.
The question about when Joe Louis Arena's lease expires has fueled speculation as to what will happen with the Red Wings.
Companies controlled by the Ilitches have acquired nearly all of the land behind their Fox Theatre and Hockeytown Cafe, fueling speculation they will build a new home for the Wings and move the team to the Foxtown area on Woodward north of Grand Circus Park.
The lease, which was crafted before the Ilitch family owned the team, is considered one of the most lucrative in the National Hockey League and is a reason the Red Wings are one of the league's most valuable teams.
Olympia Arenas pays the city just $450,000 a year to lease both Joe Louis Arena and Cobo arena. The city gets a cut of concessions plus a ticket surcharge, which has averaged around $2.5 million a year since 2000.
Detroit officials have no say in whether the contract will be extended.
Other related stories at the Detroit News:
It's Detroit law department's view; Tiger Stadium plan due Aug. 31.
David Josar / The Detroit News
Olympia Arenas, the company controlled by Mike Ilitch and his family, has until June 2009 to make a decision on whether it will extend its lucrative lease of the Joe Louis and Cobo arenas, according to a recent law department opinion.
The city law department delved into the issue last month at the request of the auditor general, said city spokesman James Canning.
Earlier this year, the City Council's fiscal analyst said the lease expired in 2008, and Olympia had to tell Detroit this summer what it planned to do.
The law department, after reviewing the lease and its sub-agreements which total more than 100 pages, decided the agreement runs through June 30, 2010, and Olympia has until June 30, 2009, to decide whether it will continue operating and using the venues.
The law department opinion brought relief to Red Wings fans who were unsure how long the team would play in Joe Louis Arena.
"At least we know we can stop gossiping for a couple years as to what will happen with the Red Wings," said Yancy Hunter, 43, during lunch at the Hockeytown Cafe on Tuesday.
"Not much is going on with the other teams right now, so this is becoming gossip fodder for us. Will The Joe be replaced? At least not now. Now all we have to worry about is Tiger Stadium."
A consortium led by legendary sportscaster Ernie Harwell is working against an October deadline to come up with a plan that could preserve much of Tiger Stadium, which has been virtually unused since 1999. The team starting playing in Comerica Park in 2000.
Grosse Pointe attorney Gary Spicer, who is working with Harwell, said the city will have Harwell's complete plan by Aug. 31.
Harwell, who was the voice of the Tigers for more than 40 years, is touting a concept that will incorporate museums, a 10,000-seat ball field, residential lofts and commercial development for the corner of Michigan and Trumbull.
"Things are moving forward," said Spicer.
The City Council voted last month on a plan that would mean demolition could begin in October, but George Jackson, the city's head of economic development, said a viable redevelopment plan with solid financing could keep the stadium standing.
The question about when Joe Louis Arena's lease expires has fueled speculation as to what will happen with the Red Wings.
Companies controlled by the Ilitches have acquired nearly all of the land behind their Fox Theatre and Hockeytown Cafe, fueling speculation they will build a new home for the Wings and move the team to the Foxtown area on Woodward north of Grand Circus Park.
The lease, which was crafted before the Ilitch family owned the team, is considered one of the most lucrative in the National Hockey League and is a reason the Red Wings are one of the league's most valuable teams.
Olympia Arenas pays the city just $450,000 a year to lease both Joe Louis Arena and Cobo arena. The city gets a cut of concessions plus a ticket surcharge, which has averaged around $2.5 million a year since 2000.
Detroit officials have no say in whether the contract will be extended.
Other related stories at the Detroit News:
- Harwell readies plan for stadium
- Harwell goes extra inning to save Tiger Stadium
- Tiger Stadium milestones
- Emotional fans criticize razing plans
- Harwell to make last pitch for old ballpark
- Tiger Stadium proposals fell short
- City: Revisit Tiger Stadium plans
- Detroit council wants more info on Tiger Stadium plans
- Tiger Stadium plan hits a snag
- Tiger Stadium's fate on hold
- Tiger Stadium project goes to council, public today
- Planning Commission doesn't back Tiger Stadium redevelopment plans
- Plan to raze Tiger Stadium resisted
- Tiger Stadium view from above was priceless
- Ilitch has to decide the Joe's fate soon
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