Joe Louis Arena to be demolished as part of Detroit bankruptcy settlement

With the help of the state of Michigan, Joe Louis Arena will be demolished after the Detroit Red Wings move to a new $450 million arena — and the vacant land will be turned over to Detroit's last major creditor in bankruptcy court.

The deal with Financial Guaranty Insurance Corp., a bond insurer that held a $1 billion claim with the city, would see the Red Wings and the arena's adjacent parking garage demolished, "giving Financial Guaranty nearly nine acres for a hotel, condominiums, office space or retail development," Crain's reports.

The state of Michigan agreed to provided up to $6 million in funding for demolition, which would have to begin six months after the Red Wings depart for the team's new home. That comes as part of a deal Detroit City Council agreed to earlier this year. 

The Red Wings have called Joe Louis Arena its home since the late 1970s, after Detroit built the arena as a ploy to keep the team from moving to Pontiac.