The 109-acres that The Palace of Auburn Hills sits on could be rezoned as a technology and research district, should the city’s planning commission and city council approve the plan.
According to a release from Auburn Hills, the city has been in talks with Palace Sports & Entertainment to craft a rezoning request for the site to help facilitate future development of the property.
Last fall that the Detroit Pistons pro basketball team announced it was moving to the new Little Caesars Arena in downtown Detroit for the 2017-2018 season. The move has raised questions whether a sports arena can remain viable without a sports team.
No decision has been made about what will happen with the Palace, said Kevin Grigg, vice president of public relations for Palace Sports & Entertainment.
“We’re looking at all of our options,” Grigg said, adding that rezoning the property gives the company more options for the venue moving forward.
When asked how long it might take for Palace Sports & Entertainment to make a decision about the future of the arena, Grigg said there was no timetable.
The team practice facility and executive offices will remain at the Palace for at least one more season while a new practice facility in built in Detroit.
Six acres of the property are already zoned as a technology and research district, while the rest of the site is currently zoned as a general industrial district. An amendment will be presented with the rezoning request to allow the Palace to continue operating under the new zoning.
The decision to rezone the site for business is consistent with the current property mix of Auburn Hills. About 83 percent of the city’s tax base comes from non-residential property owners. Redevelopment of the Palace property would likely draw interest from companies looking to build facilities or a headquarters near existing technology businesses and auto suppliers. A 2015 industrial analysis of the city showed that there were 56 vacant industrial properties available or about 525 acres left in the city.
Tom Tanghe, city manager of Auburn Hills, said in a statement that the proposed zoning change was the result of a redevelopment review by city staff.
“The study produced a two-pronged approach; one being more of a ‘wish list’ for the redevelopment of the property and the other recommending what we are best known for — uses that are typically categorized as research and development or advanced manufacturing. The latter of the two is a natural for us,” he said.
The rezoning request is expected to go before the city’s planning commission on Wednesday, June 14. Should it pass, the Auburn Hills City Council will consider the request on Monday, June 26.
