DETROIT — A $40-million Wayne State University business school named after Mike Ilitch will be built near the Red Wings new arena. It is part of a string of projects funded by the billionaire’s family to expand the area near the city’s midtown. 

The new Mike Ilitch School of Business will be constructed at the southwest corner of Woodward and Temple, The Detroit News reported. In addition to donating the land and $35 million to build the facility, the Ilitches will give a $5 million endowment.

The 120,000-square foot business school may take up an entire block. It is one of several major developments the Ilitch family is expected to announce over the next year as it moves forward with its goal to create a densely populated area that could be bigger than the current downtown. Large sections of the area are vacant or blighted.

The Ilitches have committed to invest at least another $200 million for developments in the area beyond the arena. The economic benefit of the project is estimated at $1.8 billion, officials told The Detroit News.

Wayne State spokesman Matt Lockwood couldn’t confirm the deal with the Ilitches, according to The News, but he said the university was planning a special event on Friday.

Mike Ilitch owns the Detroit Red Wings and Detroit Tigers. He and his wife, Marian, co-founded Little Caesars Pizza.

Last year, Mike and Marian Ilitch gave $8.5 million to Wayne State’s School of Medicine. The donation will create the Ilitch Chair for Surgical Innovation and establish a fund to support surgical technology research and development.

Within the WSU School of Business Administration, the possibility of the move has been openly discussed among faculty and students for more than a year. 

Dan Gilbert’s Bedrock Real Estate Services also had pursued Wayne State’s business school. In January, WSU officials told The Detroit News the Ilitches took the lead on the project.

Since he took office in 2013, WSU President M. Roy Wilson has supported the idea. He thinks Wayne State could lead and spur economic growth in Detroit.