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Detroit Red Wings deal a cautionary tale
How billionaire Ilitch clan fleeced bankrupt city
The sports publication deadspin.com this week excerpted a story on the Detroit Red Wings scam from Next City, a magazine for urban leaders. The story unearths some new, horripilating facts.
A week after Detroit declared bankruptcy, it was announced that taxpayers would pay 58 percent of the cost of a new Red Wings hockey arena for the Ilitch family, which is worth $3.2 billion.
Tax-increment financing will contribute at least $12.8 million a year to the project; If that money weren't going to the arena, it would go to Michigan's School Aid Fund. The $261.5 million taxpayer subsidy comes at a time firefighters and police could see pensions reduced by as much as one-third.
Last month, the Detroit City Council voted to sell the Ilitch company and the Downtown Development Authority (who will share ownership of the arena) 39 vacant parcels for $1. The Ilitch operation (which owns a downtown gambling casino and the also-subsidized Detroit Tigers baseball team) called the $1 payment a "once-in-a-generation" deal. Yes, for the Ilitch family.
After council approved the $1 transfer, a Detroiter shouted, "The citizens of Detroit thank you for selling them out!"
Oh, yes. In 1992, as controversy swirled over the Tigers subsidy, a ballot initiiative banned the use of public subsidies for stadiums. Three years later, the council passed an ordinance that repealed it.
Here's something you might be interested in.
Detroit Red Wings deal a cautionary tale
How billionaire Ilitch clan fleeced bankrupt city
Detroit Red Wings deal a cautionary tale
How billionaire Ilitch clan fleeced bankrupt city
The sports publication deadspin.com this week excerpted a story on the Detroit Red Wings scam from Next City, a magazine for urban leaders. The story unearths some new, horripilating facts.
A week after Detroit declared bankruptcy, it was announced that taxpayers would pay 58 percent of the cost of a new Red Wings hockey arena for the Ilitch family, which is worth $3.2 billion.
Tax-increment financing will contribute at least $12.8 million a year to the project; If that money weren't going to the arena, it would go to Michigan's School Aid Fund. The $261.5 million taxpayer subsidy comes at a time firefighters and police could see pensions reduced by as much as one-third.
Last month, the Detroit City Council voted to sell the Ilitch company and the Downtown Development Authority (who will share ownership of the arena) 39 vacant parcels for $1. The Ilitch operation (which owns a downtown gambling casino and the also-subsidized Detroit Tigers baseball team) called the $1 payment a "once-in-a-generation" deal. Yes, for the Ilitch family.
After council approved the $1 transfer, a Detroiter shouted, "The citizens of Detroit thank you for selling them out!"
Oh, yes. In 1992, as controversy swirled over the Tigers subsidy, a ballot initiiative banned the use of public subsidies for stadiums. Three years later, the council passed an ordinance that repealed it.
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