State approves bonds to fund new Detroit entertainment district and Red Wings Arena

(WXYZ) - Governor Rick Snyder has announced approval by the Michigan Strategic Fund of $450 million in bonds to finance the construction of a new Detroit entertainment district.

The entertainment district will include a new arena for the Detroit Red Wings.

"This new entertainment district will be much more than a new arena for the Detroit Red Wings. This is a project that will help revitalize Detroit," Snyder said in a news release. "This project creates another major destination point for residents and visitors alike that builds on prior investments along Woodward from Comerica Park and Ford Field to the new Whole Foods in Mid-Town. The Ilitch family organization is making an enormous investment in the city and state bond financing makes this project a true public-private partnership."

The project is expected to cost around $650 million and will create an estimated 4,400 jobs.

The bonds issued by the state will go towards funding the 44% of the cost that the state is picking up. Olympia Development, which is owned by Red Wings owner Mike Ilitch, will be funding the other 56% of the project.

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