Olympia Entertainment has informed the City of Detroit via personal phone call and hand-delivered letter that, pursuant to the terms of its current lease, Olympia Entertainment will not exercise its option to extend the current lease on the Joe Louis and Cobo Arenas for an additional 20 years. The current lease, which covers both arenas, expires on June 30, 2010, and automatically renews for 20 years if Olympia Entertainment did not notify the city of its decision on the option by June 30.

Olympia’s decision to not extend the current lease returns Cobo Arena to the city and should assist officials in their efforts to keep the North American International Auto Show in Detroit. In addition, this action allows Olympia Entertainment and Detroit to continue work on a new lease specifically for Joe Louis Arena.

According to Christopher Ilitch, president and CEO of Ilitch Holdings, Inc., the existing lease — crafted more than three decades ago by individuals no longer associated with either Olympia Entertainment or the city — neither fully contemplates the evolution of the sports and entertainment industry, nor the current economic environment, nor infrastructure replacement and repair needs of the 30-year-old building in order to meet today’s competitive industry standards.

Ilitch also said he believes this is one way the company can help keep the North American International Auto Show in Detroit.