This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Detroit Bets On Uncertainty Of Rail, New Arena

Tom Stephens, a lawyer who spoke against the hockey arena at a recent city council meeting, asked why elected officials would spend a huge sum to benefit the "multibillionaire owner of a sports franchise" at a time when the needs of average residents are unmet.

If successful, the projects could buy time for improving essential services a¿¿ a promised upshot of bankruptcy. If they fail, the proposed developments could join a line of ideas a¿¿ some futile, others effective a¿¿ that could not stop Detroit's slide into ruin.

Belanger remembers when the People Mover, a little-used elevated train circling downtown, was going to help save Detroit in the 1980s. The system never attracted enough riders and relied too much on government subsidies.

Then Michigan voters approved three city casinos within a decade. At the turn of the millennium, new stadiums for the Tigers and Lions followed and helped renew downtown. Yet Detroit still lost a quarter of its population between 2000 and 2010. It is now about 700,000.

Belanger's bar, jazz club and restaurant stand to benefit if the new hockey arena for the Red Wings is built nearby, but he still has doubts.

"For every dollar spent in the new location, there's a dollar being lost in the old location," he said. "There's not going to be a hockey team in Detroit that wasn't already in Detroit."

Others are equally certain that Detroit has no choice but to bet on downtown, where residential occupancy rates are high partly due to the relocation of thousands of jobs by business magnate Dan Gilbert and other employers.

The proposed 3.3-mile streetcar project along the city's commercial corridor will bring light rail to one of the nation's few urban centers still without it. Transit is seen as crucial to attracting young professionals who are driving less and want an urban lifestyle. Just 5 percent of the metropolitan area's 25- to 34-year-olds live in or near downtown.

2 of 3

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,959.44 +154.64 0.87%
S&P 500 2,078.54 +7.89 0.38%
NASDAQ 4,781.4240 +16.0440 0.34%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs