2.18.08
Ilitch's Olympia Entertainment takes over Masonic Temple management
Robert Snell / The Detroit News
DETROIT -- Mike Ilitch-owned Olympia Entertainment will announce Tuesday that it has taken over management of the Masonic Temple under a deal aimed at expanding his family's sports and entertainment empire and saving the tax-ridden landmark, which faces foreclosure March 1.
The deal gives Olympia Entertainment a bigger piece of the local concert and performance industry -- and rescues an imperiled architectural gem that owes $123,455 in delinquent property taxes, according to the Wayne County Treasurer's office.
"It's a good deal for the masons, it's a good deal for Ilitch --he's going to make a bunch of money --and it's a good deal for us because we have a home and don't have to worry about taxes," Masonic Temple Association President Bill Betz said.
Under the deal, the Masonic Temple Association will continue to own the landmark while Olympia will manage all of the facility's commercial operations, book shows and concerts.
The deal also is expected to generate enough cash for temple owners to stave off property foreclosure, and pay off unpaid taxes dating to 2005. A $27,326 delinquent water and sewer bill was paid Jan. 28, according to the city.
Olympia Entertainment President Dana Warg will be available to discuss the deal Tuesday, an Olympia representative said. Warg was hired last year after serving as a vice president with sports and entertainment promoter AEG. He oversaw day-to-day booking and operations of venues that included the Staples Center in Los Angeles.
Ilitch, a pizza baron who along with wife Marian, owns Little Caesars Pizza. He also owns the Detroit Tigers and Detroit Red Wings and has created a sprawling sports and entertainment district along Woodward, south of Interstate 75, that includes Comerica Park, the Fox Theatre, Hockeytown Cafe and the potential site of a new Joe Louis Arena. His wife's separately owned MotorCity Casino is a few blocks west of the Masonic. Olympia and the Masons have been negotiating for more than one year.
Betz did not disclose the financial details or say when the deal was signed, but said the long-term lease runs for more than five years "and less than 20."
The 14 lodges that meet at the temple will continue to do so and all bills will be paid by Olympia, Betz said.
"As far as the lodges are concerned, nothing changes," Betz said.
The Masonic Temple opened in 1926 and was considered by some the region's entertainment epicenter. It has hosted a vast roster of rock stars and Broadway musicals, from the White Stripes to "Wicked" in either its 1,600-seat theater or the 4,400-seat Main Theatre, only slightly smaller than downtown's Fox Theatre, which has some 5,000 seats.
Business has plummeted in recent years as other Masonic organizations have relocated and former management firm, Nederlander Detroit, had booked fewer plays, musicals and concerts -- about 50 a year, down from 120 several years ago, Betz said.
An Ilitch foothold at the Masonic Temple could trigger redevelopment along the lower Cass Corridor.
"It could be the anchor of redeveloping that whole area," said Patrick Dorn, executive director of the Cass Corridor Neighborhood Development Corp. which rehabilitates and builds affordable housing nearby.
One key would be linking the Masonic and MotorCity by an elevated tram so casino-goers could watch a show at the temple and shuttle back to the gambling venue, Dorn said.
He said if Ilitch managed to develop apartments or lofts within the temple's upper floors, it could lead to perhaps a grocery story opening nearby.
"It has to be something more than just shows," Dorn said.
You can reach Robert Snell at (313) 222-2028 or rsnell@detnews.com.
Find this article at:
http://www.detnews.com/apps/pbcs.dll/article?AID=/20080218/BIZ/802180403
The deal gives Olympia Entertainment a bigger piece of the local concert and performance industry -- and rescues an imperiled architectural gem that owes $123,455 in delinquent property taxes, according to the Wayne County Treasurer's office.
"It's a good deal for the masons, it's a good deal for Ilitch --he's going to make a bunch of money --and it's a good deal for us because we have a home and don't have to worry about taxes," Masonic Temple Association President Bill Betz said.
Under the deal, the Masonic Temple Association will continue to own the landmark while Olympia will manage all of the facility's commercial operations, book shows and concerts.
The deal also is expected to generate enough cash for temple owners to stave off property foreclosure, and pay off unpaid taxes dating to 2005. A $27,326 delinquent water and sewer bill was paid Jan. 28, according to the city.
Olympia Entertainment President Dana Warg will be available to discuss the deal Tuesday, an Olympia representative said. Warg was hired last year after serving as a vice president with sports and entertainment promoter AEG. He oversaw day-to-day booking and operations of venues that included the Staples Center in Los Angeles.
Ilitch, a pizza baron who along with wife Marian, owns Little Caesars Pizza. He also owns the Detroit Tigers and Detroit Red Wings and has created a sprawling sports and entertainment district along Woodward, south of Interstate 75, that includes Comerica Park, the Fox Theatre, Hockeytown Cafe and the potential site of a new Joe Louis Arena. His wife's separately owned MotorCity Casino is a few blocks west of the Masonic. Olympia and the Masons have been negotiating for more than one year.
Betz did not disclose the financial details or say when the deal was signed, but said the long-term lease runs for more than five years "and less than 20."
The 14 lodges that meet at the temple will continue to do so and all bills will be paid by Olympia, Betz said.
"As far as the lodges are concerned, nothing changes," Betz said.
The Masonic Temple opened in 1926 and was considered by some the region's entertainment epicenter. It has hosted a vast roster of rock stars and Broadway musicals, from the White Stripes to "Wicked" in either its 1,600-seat theater or the 4,400-seat Main Theatre, only slightly smaller than downtown's Fox Theatre, which has some 5,000 seats.
Business has plummeted in recent years as other Masonic organizations have relocated and former management firm, Nederlander Detroit, had booked fewer plays, musicals and concerts -- about 50 a year, down from 120 several years ago, Betz said.
An Ilitch foothold at the Masonic Temple could trigger redevelopment along the lower Cass Corridor.
"It could be the anchor of redeveloping that whole area," said Patrick Dorn, executive director of the Cass Corridor Neighborhood Development Corp. which rehabilitates and builds affordable housing nearby.
One key would be linking the Masonic and MotorCity by an elevated tram so casino-goers could watch a show at the temple and shuttle back to the gambling venue, Dorn said.
He said if Ilitch managed to develop apartments or lofts within the temple's upper floors, it could lead to perhaps a grocery story opening nearby.
"It has to be something more than just shows," Dorn said.
You can reach Robert Snell at (313) 222-2028 or rsnell@detnews.com.
Find this article at:
http://www.detnews.com/apps/pbcs.dll/article?AID=/20080218/BIZ/802180403
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