DETROIT—Olympia Development of Michigan, the property arm of Ilitch Holdings, has signed an agreement with the city’s Downtown Development Authority  and Wayne County to build a $650 million new mixed-use property that would include a hockey arena for the Detroit Red Wings.

The total mixed-use development in the district, including residential, retail, office facilities and events center incorporates approximately $367 million or 56 percent in private investment and approximately $283 million or 44 percent in public investment through existing economic development funds, according to an Ilitch statement.

The building is proposed for an area across Woodward near the Stadium District, which includes Ford Field, the home of the Detroit Lions football team, and the Detroit Tigers’ Comerica Park. Ilitch owns both the Tigers and the Red Wings. The move was anticipated, as Ilitch is a major property holder downtown and the company had signed only extensions of a lease at the current Red Wings home, Joe Louis Arena, located along the Detroit River.

“There has been tremendous progress made throughout Detroit over the last decade,” said Christopher Ilitch, president and CEO of Ilitch Holdings. “The location of the events center district will not only help to rebuild this neighborhood, but will also serve as a vital connector, bringing together the many efforts completed or underway from the riverfront to midtown and beyond.”