Report: Detroit Red Wings to get new arena. A state agency okay’d the $450m bond act that allows the Red Wings to get a new arena built near Comerica Park and Ford Field to replace the Joe Louis Arena.

State officials said the overall project, which includes a total of $650 million in arena costs and retail, residential and restaurant development around the arena on 45 acres, would create 4,380 construction jobs.

The city’s bankruptcy is not expected to interfere with the project, which backers said consists of 56 percent private investment from Olympia Development and 44 percent public financing from tax capture in the Detroit Downtown Development Authority area.

That compares to an average of 25 percent private development for new major league sports stadiums and arenas around the nation, backers said.

“This new entertainment district will be much more than a new arena for the Detroit Red Wings,” Gov. Rick Snyder said in a statement. “This is a project that will help revitalize Detroit. This project creates another major destination point for residents and visitors alike that builds on prior investments along Woodward from Comerica Park and Ford Field to the new Whole Foods in Midtown. The Ilitch family organization is making an enormous investment in the city and state bond financing makes this project a true public-private partnership.”

Last month, Olympia Development of Michigan, an Ilitch-owned company, signed a memorandum of understanding with the Downtown Development Authority and Wayne County that provides the framework for the financing of what’s being called the “Catalyst Development Project.”

Snyder has defended the bond act, over claims that the city shouldn’t be taking on this kind of project at a time when it can’t pay its bills and provide basic services.

I agree; the city shouldn’t be taking on bonding for this arena when the private entities that own the team should be able to do so if they want it badly enough. But at the same time, it would provide new jobs, help redevelop and centralize services/entertainment and help spur redevelopment in the city core.