Quote:
Metro Times has learned that Tom Lewand, group executive for jobs and economic growth in the administration of Detroit Mayor Mike Duggan, is a key player in negotiations between the Ilitch family and Gores. Duggan is the chairman of the DDA board — and, in his absence, Lewand serves as his conduit.
Asked if Lewand is involved in negotiations for the Pistons, or if the mayor would support the use of a tax incentive package to lure the Pistons downtown, a spokesperson declined to comment.
“As a rule, we wouldn't discuss any ongoing negotiation that may be taking place or respond to speculative reporting that has taken place,” said Duggan’s spokesman, John Roach.
The DDA on Wednesday approved a contract adjustment that raises the total cost for the arena to $732.6 million — however, Olympia Development of Michigan [[ODM), the arm of Red Wings owners Mike and Marian Ilitch’s company that is building the facility, says the actual cost of construction remains at $627.5 million.
The difference in costs appears to come down to the definition each have of “arena.”
In approving a change order for the arena project on Wednesday, the DDA defined the $732.6 million cost for the facility as: $451 million for the arena itself; $146 million for construction around the arena, including, for example, a new parking garage; and $97 million in “soft” costs, meaning engineering and architectural planning.
Hmm..... I wonder if this was the master plan all along. You know, build the arena with the help of state bonds and then have the city/DDA expand the TIF district to help fund the Pistons practice facility and HQ. Gores is obviously a wealthy man and doesn't need tax payers help just like Ilitch, but when there's DDA tax breaks to be had.... why not play the system to your advantage. It would also be interesting to see if they end up moving the new scoreboard from the Palace to the LCA. It's one of those modern Cowboys Stadium scoreboard and they really wouldn't need it for concerts at the Palace. Saves them money and it wouldn't be a waste on Gores part.