DETROIT — The Ilitch family’s Olympia Development will oversee the construction of a new 20,000 seat arena for the Detroit Red Wings. The arena will be part of a new $650 million sports and entertainment district where residents will not only enjoy hockey games, but also be able to live, shop and eat. 

Detroit Mayor Mike Duggan plans to hold the Ilitches to their pledges of employing Detroit residents for the project and buying Michigan-made materials. 

“It’s very positive, and I think it’s very thoughtful,” Duggan said. “My biggest issue is going to be to make sure Detroiters participate in this process both in terms of jobs and in terms of opportunities for restaurants and businesses. If this is done in a way that includes Detroiters, I think it’ll be very successful.”

Some concerned residents expressed worry about an increase of traffic, while others said the money should instead be spent on schools, roads and other public needs. Many reacted to an increase in tax subsidies and incentives that is provided by the government for the project. 

In addition to the arena, the project would include new residential homes, parks and streetlights, retail establishments, hotels and restaurants.  According to Christopher Ilitch, president and CEO of Ilitch Holdings, the area will have the intimate air similar to that of European cities known for their street life.

For the most part, the arena and other planned buildings will be constructed on vacant lots along the Woodward corridor. It will be integrated with several other attractions, including the planned M-1 Rail line.