A Michigan development agency says it has awarded incentives to further work on Detroit's light-rail project and tear down the Detroit Red Wings' current home.

The Michigan Economic Development Corp. announced the grants and loans Tuesday to develop the M-1 Rail project and demolish Joe Louis Arena. The rail project has been awarded a $10 million performance-based loan and the arena demolition will get $6 million in economic assistance.

The 3.1-mile streetcar line is to start running along Woodward Avenue in 2016. It also has $25 million in U.S. aid.

A new arena could be built by the same year that would replace Joe Louis as a hockey and entertainment venue. The City Council has approved the transfer of land just north of downtown and financing for a new facility.

Joe Louis Arena opened in 1979.