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Governor defends new arena for bankrupt Detroit

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LANSING, Mich. -- A state board on Wednesday unanimously gave the go-ahead for a new Red Wings hockey arena in downtown Detroit to be paid for in part with $284 million in tax dollars even as the broke city works through bankruptcy proceedings.

Michigan Gov. Rick Snyder and others defended against criticism that the $650-million project should be financed entirely with private money because the city currently can't provide basic services and retirees are facing cuts in their pensions. The 18,000-seat arena is designed to be a catalyst for more development and to link downtown and midtown, turning a blighted area into a business, residential and entertainment district.

"This is part of investing in Detroit's future," said Snyder, a Republican who blessed a state-appointed emergency manager's request to take the city into bankruptcy last week. "That's the message we need to get across. ... As we stabilize the city government's finances, as we address those issues and improve services, Detroit moves from a place where people might have had a negative impression -- although there are great things already going on -- to being a place that will be recognized across the world as a place of great value and a place to invest."

The Michigan Strategic Fund Board approved the Detroit Downtown Development Authority's request to use economic development taxes for the project.

 

-- The Associated Press

Republished from the Winnipeg Free Press print edition July 25, 2013 D2

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