Red Wings Arena Cost Rises

Officials say the cost of building the Detroit Red Wings’ new arena has jumped another $105 million to nearly $733 million.

Photo: Tanya Moutzalias /The Grand Rapids Press via AP

Construction progresses on Little Caesars Arena in Detroit June 8. The new home of NHL’s Red Wings is expected to be completed by the 2017 hockey season with a 20,000 capacity, five restaurants, seven bars and 60 percent more concessions than the previous venue.

The city’s Downtown Development Authority said the updated estimate to build Little Caesars Arena for the NHL team includes the cost of materials, permits, design improvements and subcontractor agreements.

City documents show other construction costs could rise as well, according to the Detroit News. However, officials said the revision doesn’t indicate massive cost overruns or that taxpayers will face additional expenses.

“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,” Moddie Turay, executive vice president for real estate for the Detroit Economic Growth Corporation, said in a statement. The facility is scheduled to open next fall.

Daily Pulse