6.26.09TERM OF EXISTING JOE LOUIS LEASE
The Ilitch family’s lease for its Red Wings to play at Joe Louis Arena expires in a year, and will be replaced by a new deal. The current lease includes:
- • The city provides free police and landscaping services, including snow removal, for both the Joe Louis Arena and Cobo Arena, and up to $500,000 annually for capital improvements for the hockey venue.
• The Ilitches pay property taxes on city-owned Joe Louis, but they are capped at $252,000 annually. Without the cap, the tax would be about $1 million.
• The Ilitches pay $25,000 monthly rent for Joe Louis and $12,500 for Cobo.
• Detroit collects a 10 percent ticket tax for Joe Louis events and a 7.5 percent ticket tax for Cobo events.
• The city collects a surcharge of 10 percent on concessions and 7 percent on suite sales.
• If the lease is renewed, the city immediately loses the ticket taxes and in five years loses the surcharge on concessions and suites.
• A new arena would mean the city could charge for police and snow services and collect full property taxes on the venue. The city also could lose its ticket, concession and suites surcharges. All this depends, of course, on a new lease or stadium deal, its financing and who owns the new venue.
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