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U.S. District Judge Mark A. Goldsmith (Wikimedia Commons photo)
Update: Tuesday, 12:48 p.m. -- The Detroit City Council on Tuesday approved $34.5 million in taxpayer-funded bonds for modifications to the Little Caesars Arena to allow the Detroit Pistons to play there this fall, the Detroit News reports.
The vote was 7-2 with Council president Brenda Jones and council member Raquel Castaneda-Lopez voting no.
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From Monday Night
A federal judge in Detroit late Monday night shot down a request for a temporary injunction to block the Detroit Downtown Development Authority from spending $34.5 millions in public funding to move the Detroit Pistons from Auburn Hills to Detroit, saying it would cause significant damage to the city.
In an eight-page ruling, U.S. District Judge Mark A. Goldsmith said the granting of the temporary injunction would not merely delay the Piston move to the city, but likely cancel the plans entirely and "cause a ripple effect of lost business revenue in the district for years to come."
"The loss of anticipated commercial activity connected to the Detroit Piston’s downtown presence would be regrettable, but the loss of the city’s hard-won creditworthiness caused by defaulting on existing bond obligations would do catastrophic damage to the status quo," Goldsmith said.
The ruling was latest in a drama being played out in court, and cleared the way for the Downtown Development Authority to go before the Detroit City Council on Tuesday for approval of a $34.5 million taxpayer-funded bond to modify Little Caesars Arena to make way for the Pistons to play there this fall.
Activist Robert Davis and City Clerk candidate D. Etta Wilcoxon filed a federal lawsuit on June 1, insisting public money should not be used for the project without voter approval. Specifically, the suit argues that it is unlawful to use $34.5 million for the Pistons' move from revenue generated from millage for the schools and Wayne County parks.
The two had asked for the temporary injunction pending the outcome of their lawsuit.
In denying the injunction, the judge concluded that the plaintiffs had not shown a strong likelihood that the lawsuit will succeed.
Critics say the city was not always transparent with the public while it put together proposed funding for the Pistons move.
In fact, the city proceeded to hold a press conference last November at Cass Tech High School before the funding had officially been approved.
