In arena news, reports this week say that the cost to build the arena has jumped $105 million to its new estimate - $733 million. According to these reports,
“The city's Downtown Development Authority said the revised estimate to build the Little Caesars Arena for the NHL team reflects the specific cost of materials, permits, design refinements and subcontractor agreements.”
Many are saying the total cost could reach $1 billion when all is said and done.
According to the report, Olympia Development would cover the increased cost.
“The increases represent enhancements or changes that our private partner, Olympia Development of Michigan, will be paying for — as they are required to do under our contract," said Moddie Turay, executive vice president for real estate for the Detroit Economic Growth Corporation — which administers the Downtown Development Authority, in a written statement.”
Could the Pistons move factor into this? We should have a definitive statement on the Pistons move later this month, and they’ll need to build a practice venue if and when they move.