The City the Detroit has until May to begin demolition work for now-empty Joe luigi Arena v a goal of getting the land prepared for a new, large hotel that would certainly reshape the downtown riverfront.

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That deadline is laid out in a 3-year-old agreement between the city and also one that its former bondholders, which received future property and advancement rights to the arena property in exchange for accepting big losses during Detroit"s 2013-14 municipal bankruptcy.

The deal calls for the city — i beg your pardon built and still own The Joe — to start the demolition process within 90 job of the expiration that the arena"s long-term lease with the Red wings and the Ilitch family"s Olympia Entertainment.

The lease was originally expected to finish by mid-September 2017, according to the agreement and city documents, yet didn"t expire until Wednesday because Olympia exercised choices for time extensions. Occupational crews to be spotted in recent weeks removing material from the 38-year-old, windowless building. 

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Under the timeline set out in the agreement, the city currently has until may 1 to get demolition under way, or, in ~ the minimum, start "staging because that the demolition." 

The city will then have a full year to end up tearing down The Joe.

City spokesman man Roach stated Friday that city officials in coming months will start preliminary demolition-related work, such as ecological surveys the the arena site. However, "mobilization because that the knock-down phase" won"t take place by the 90-day note in May, that said.

Detroit has actually yet to recognize when and also how it will take down the arena, including whether any explosives will be used, such together were work at the Pontiac Silverdome, Roach said.

But once the arena is gone, the city is to hand over the 5-acre site (plus the of the nearby 3,200-space Joe luigi Arena garage) to its former bondholder, the financial Guaranty insurance Co.

The agency will then have actually a year under the covenant to start constructing a brand-new "first-class" hotel top top the previous arena site, adding a new lodging option for Cobo facility conventioneers.

This riverfront hotel is forced to have up come 30 floors and at least 300 rooms. It could likewise be join by additional development, such as offices, apartments, restaurants and retail stores, the commitment says.

So far, there space no official proposals because that the hotel development, Roach said.

A representative for the financial Guaranty insurance allowance Co. Did no return recurring messages this week. The certain swallowed huge losses throughout Detroit"s chapter 9 bankruptcy, receiving about 13 cent on the dollar because that its $1.1-billion claim against the city.

The city is to be reimbursed for the arena"s demolition prices through up to $6 million in loan from the state via the community Revitalization Program. Details on the loan terms were not available Friday.

State officials have also pledged to reimburse the insurance money company for as much as $18 million in hotel breakthrough costs, including with tax-incremental financing, the covenant says. 

Additionally, local property taxes for the hotel development can be frozen and not account for the hotel advance for as much as 10 years.

Joe louis Arena opened up in December 1979 and also was residence to 4 Red wings Stanley Cup championship teams and more than 600 concerts and also events.

The city developed the $34-million arena to keep the Red Wings, climate owned by the Norris family, from leaving Detroit for Oakland County.

The wing played their last game at The Joe last April 9, a 4-1 success over the new Jersey Devils. They now play at the brand-new $863-million small Caesars Arena.

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