Previous public subsidies for Little Caesars Arena top $400 million
As the conversation around the District Detroit tax incentives and financing heats up, we're diving into the Ilitches' Little Caesars Arena, which has already received at least $403 million in public subsidy commitments from the Downtown Development Authority.
Why it matters: With so many residents in need, public funding for downtown developments is often viewed with skepticism — if not outright opposition.
- A new development proposal for the arena district comes with a demand for nearly $800 million in tax incentives.
- The DDA collects tax dollars used to promote downtown's growth.
💰 The previously approved subsidies related to LCA include:
$287 million: Government bonds to fund a portion of the arena's $863 million construction and the Pistons' move to LCA.
$74 million: This payment was triggered in 2018 when the Ilitches' development company, Olympia, met its commitment for $200 million worth of additional development in the arena district.
- The payments are scheduled over time, with over $70 million to be paid after the arena bonds are paid off in 2048.
$34.7 million: A DDA contribution under the original public financing plans.
$7.3 million: The DDA's share of an LCA repair fund, which started at $500,000 a year and escalates 4% annually.
- The $14.6 million cost through 2051 is split with Olympia.
More Detroit stories
No stories could be found
Get a free daily digest of the most important news in your backyard with Axios Detroit.