New Cobo plan hinges on Ilitches

The newest plan for the Cobo center is a go, as long as the Ilitches give it a thumbs up. Because this Cobo plan would affect Joe Lewis Arena, which the Ilitches own, they have somewhat of a veto on it due to a clause in the Joe's lease.

Excerpt:

The newest city proposal adds 166,700 square feet to Cobo in time for the 2011 auto show mainly by gutting the arena and making it available as exhibition space. The project would be funded by legislation that would extend local hotel taxes, now under discussion in Lansing.

Meanwhile, the lease issue remains unresolved and the Ilitches appear to have leverage in renegotiating.

The Ilitches' Detroit Red Wings play at Joe Louis Arena, and the family is mulling options on the aging and physically limited facility: whether to renovate the 29-year-old venue for what some estimate could be $180 million or more, or build a new arena elsewhere in the city, which could cost more than $250 million.

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