Detroit gets money for rail line, Joe Louis Arena tear-down

Rail project awarded $10 million loan, arena demolition will get $6 million in assistance

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Banners hang from the rafters of Joe Louis Arena before a NHL game between the Detroit Red Wings and Minnesota Wild on March 23, 2014.

DETROIT - 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.

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