LANSING, Mich. (AP) – The Michigan Strategic Fund has approved the Detroit Downtown Development Authority’s request to issue $36 million in tax-exempt tax increment revenue bonds to help the Pistons relocate from Auburn Hills to Little Caesars Arena.
The Detroit News reports the fund – an arm of the public-private Michigan Economic Development Corp. – approved the development authority’s request Tuesday. A briefing memo says the addition of a professional basketball team at the downtown arena calls for about $34.5 million to help finance the Pistons’ move.
The Strategic Fund in 2014 granted $250 million in tax-exempt bonds for the construction of the arena, the new home of the NHL’s Detroit Red Wings set to open in the fall.
The Ilitch family, which owns the Red Wings, is financing most of the project.