U.S. District Court Judge Mark Goldsmith issued his decision late Monday, saying a requested injunction would cause “catastrophic damage” to Detroit.
The lawsuit says Michigan law prohibits spending school property tax revenue on the projects because a tax voters approved in 2012 was to be used exclusively for Detroit’s public schools. It said a vote from city residents was needed first.
Activist Robert Davis and D. Etta Wilcoxon, who is running for City Clerk, had sought to block the Detroit Downtown Development Authority from using the money.
The arena, which will be home to the NHL’s Detroit Red Wings and the NBA’s Pistons, opens this fall.
