DETROIT, MI – Within one year of completing a $450 million Detroit Red Wings arena, Olympia Development of Michigan has agreed to redevelop the historic Eddystone Hotel.
Olympia has also vowed to set aside 20 percent of the mixed-use development for affordable housing.
At the same time, Olympia plans to demolish the former Park Avenue Hotel next door. Both the Park Avenue and Eddystone buildings currently sit empty and in relative disrepair.
Rehabbing the Eddystone is one of the agreements that emerged from wrangling between the Detroit City Council and Olympia as it sought a needed zoning change to move forward with construction of the 785,000-square-foot arena and accompanying, 45-block entertainment district.
Olympia is the development arm of Ilitch Holdings, which owns the Red Wings, the Detroit Tigers, the Fox Theatre and MotorCity Casino. It is overseen by Mike and Marian Ilitch, the founders of the Little Caesars Pizza chain.
City Council signed off on the zoning change Tuesday, and Detroit’s Downtown Development Authority gave final approval Wednesday afternoon.
The DDA also on Wednesday approved a $50.7 million subcontract for Detroit-based Midwest Steel to provide the steel necessary to build the arena. The lead contractor for the project is a joint venture between Barton Malow Hunt and White Construction Co., and subcontracts above $500,000 have to be approved by the DDA.