Rezoning of Red Wings arena delayed until 2015

The rezoning of land to make way for the new Red Wings arena won't happen until next year after developers on Tuesday asked City Council to put the zoning vote on hold.

The request from Olympia Development of Michigan, an Ilitch-owned company, to delay the vote came hours after a council committee suggested a handful of amendments to Olympia's original zoning request. One amendment would have reduced the number of parking spaces in the arena's parking deck. Another would have helped preserve a historic building near the arena site.

"I believe that Olympia wants to take a look at all its options. I'm disappointed they wanted to pull back but I respect their wishes," Councilman Scott Benson said. "It gives us the opportunity to go back and talk through discussions and see what we can do to make this deal go forward."

The delay means council likely won't vote on the zoning changes until next year when it returns from recess. The council's next session is scheduled for the first week of January. Benson said the arena's construction time line is unlikely to be affected by the delay because this is not construction season.

A representative for Olympia at Tuesday's council meeting declined to comment. But the company issued a statement Tuesday night.

An Ilitch Holdings spokesman said the suggested amendments are "fundamentally flawed." The company remains committed to the project and the jobs it will create for Detroiters, spokesman Doug Kuiper said in a statement.

"These amendments would jeopardize a transformative project that will connect downtown to Midtown at a critical time as Detroit emerges from bankruptcy," the statement said. "In January, we will return to council and again ask for its support in achieving these goals and in keeping this project on a schedule that will maximize the opportunities for the people and businesses of Detroit and Michigan."

The council's decision to push back the vote buys Olympia more time to lobby council members against any changes the developer opposes. But ultimately Olympia's consent is not required for the council to rezone property. The site is now considered "general business.'' Olympia wants it designated "planned development," which would allow an owner to define how the property will be used. For Olympia, its request calls for building mixed use buildings, an arena and a parking deck.

"To the extent they're saying this is a time-sensitive issue — it's just a negotiating strategy," Councilwoman Raquel Castaneda-Lopez said.

The $450-million arena, which is 58% publicly funded, is expected to transform a long-blighted section of the Cass Corridor along Woodward Avenue north of I-75. The 20,189-seat arena is expected to be ready for the Red Wings' season opener in late 2017. Mike and Marian Ilitch own the Red Wings. Olympia Development is a division of Ilitch Holdings.

Much of the public debate leading up to Tuesday's meeting centered on the fate of the Hotel Park Avenue, a vacant building on local and national historic registries. Historic preservation advocates also were concerned about the nearby Hotel Eddystone. The Ilitch family bought both buildings in recent years as it acquired properties with the new arena in mind.

The proposed outline of the rezoning request dips in from the western boundary to carve out the Hotel Park Avenue. The exclusion of the hotel from the zoning request raised concerns among preservation advocates that the vacant hotel would be torn down. By excluding the hotel from the plans, Olympia was less obligated to provide a plan for the building's future.

"I'm not here today to speak against the development of the arena district," said Amy Swift, a member of Preservation Detroit's advisory council. "But what I am here to speak against is the shortsightedness of excluding the Park Avenue hotel and Eddystone from plans of the development area. These two buildings have potential to be anchors of the district, beacons of Detroit's rich celebrated heritage."

Swift was one of several residents and business owners who raised a variety of concerns at a public hearing Tuesday morning to discuss the hockey arena rezoning request. Representatives from Olympia were present and made a short presentation that described the plans for the arena.

After the public hearing, the council's planning and economic development committee proposed amendments to the zoning request for the full council's consideration at its meeting later in the day.

Benson's amendment was to include the Hotel Park Avenue in the rezoning perimeter. Benson said his goal was to rehabilitate the hotel to provide some affordable housing.

Castaneda-Lopez suggested two amendments. One would reduce the maximum number of parking spaces in the arena's parking deck from 1,200 to 600. Another would have required public seating to be provided outdoors throughout the arena site.

Castaneda-Lopez said she proposed the parking changes because she was concerned Olympia's proposal for a larger parking deck would have disrupted a planned biking route along Cass Avenue.

Marcell Todd, a senior city planner with the council's legislative policy division, explained to the council how the suggested changes might present obstacles for Olympia.

"As it concerns the parking situation, that is a major blow," Todd said. "It would have a distinct set of changes to the project affecting its design and affecting the layout drastically from what you see."

Castaneda-Lopez said the council could have approved the changes Tuesday, but agreed to push back the vote at Olympia's request.

"It shows council's commitment to wanting to see the project be successful and accommodating," she said. "We didn't have to honor their request and send it back to committee."

Contact Joe Guillen: 313-222-6678 or jguillen@freepress.com. Follow on Twitter @joeguillen.