The owners of the Detroit Red Wings National Hockey League team announced plans last week to build a new downtown hockey arena that would anchor a $650 million mixed-use development.

The state Senate last week passed a key financing measure that allows the plan to capture nearly $13 million in local tax revenue from the Downtown Development Authority.

The House still needs to approve the bill.

Financing would be a mix of public and private sources, according to the preliminary proposal by the Ilitch family, which in addition to the Red Wings also owns the Detroit Tigers.

"A development of this magnitude, anchored by a world-class, multipurpose events center, would be a vital contribution to a more vibrant downtown and the strengthening of our city's economy," Detroit Mayor Dave Bing said in a statement.

The hockey team currently plays at the Joe Louis Arena, which is owned by the city, and is one of the oldest arenas in the NHL. The team's lease expired in 2010.

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