A creditor from Detroit's municipal bankruptcy is trying to exit its ownership stake in the redevelopment of the Joe Louis Arena property on the Detroit River by selling to a local developer, Crain’s Detroit reported. New York-based Financial Guaranty Insurance Corp. has been in discussions with an unnamed developer about selling its interest in the redevelopment of the 9-acre property that until 2017 housed the Detroit Red Wings. The terms of a possible deal are not known. As it stands, the developer would then buy the city's ownership interest in the property, which is being demolished, and own it outright. FGIC subsidiary Gotham Motown Recovery LLC requested (and this week received) until June 15, 2021, to submit a development plan for the property, which was abandoned when the Red Wings moved to Little Caesars Arena two years ago. The new agreement calls for demolition and remediation to be complete by June 15, 2020. The demolition is estimated at $13.2 million and has received brownfield financing. Exterior work began last month. Bankruptcy court documents in 2014 said that the property was to be redeveloped with a hotel with at least 300 rooms and standing no more than 30 stories and a mix of office, retail, recreation and residential space.
