A judge has denied a request to block some public funding for Little Caesars Arena and the Detroit Pistons' move from the suburbs.
U.S. District Court Judge Mark Goldsmith issued his decision late Monday, saying a requested injunction would cause "catastrophic damage" to Detroit.
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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 Detroit residents was needed first.
The lawsuit sought to block the Detroit Downtown Development Authority from using the money. The City Council on Tuesday approved $34.5 million in taxpayer-funded bonds for the project.
The arena, which will be home to the NHL's Detroit Red Wings and the NBA's Pistons, opens this fall.