New Lease for Joe Louis Arena

Olympia Entertainment has informed the city of Detroit via personal phone call and hand-delivered letter that, pursuant to the terms of its current lease, Olympia will not exercise its option to extend its current lease on the Joe Louis and Cobo Arenas in Detroit for an additional 20 years. The current lease, which covers both arenas, expires on June 30, 2010, and would automatically renew for 20 years if Olympia Entertainment did not notify the city of its decision on the option by June 30, 2009.

Olympia’s decision not to extend the lease returns Cobo Arena to the city of Detroit and should assist officials in their efforts to keep the North American International Auto Show in Detroit. The action also allows Olympia and the city to work on a new lease specifically for Joe Louis Arena.

“The existing lease was crafted more than three decades ago by individuals no longer associated with either Olympia or the city,” said Christopher Ilitch, president and ceo of Ilitch Holdings, Inc. “It does not fully contemplate: the evolution of the sports and entertainment industry; the current economic environment; and the infrastructure replacement and repair needs of a 30-year-old building in order to meet the competitive industry standards of today.”

Joe Louis Arena was built by the city of Detroit and opened in 1979. It is leased by Olympia Entertainment from the city of Detroit, which owns the building. Cobo Arena opened in 1960.