Amended Pistons lawsuit would empower Detroit’s school board to decide on usage of tax funds

AUBURN HILLS, MI - MARCH 30: Kentavious Caldwell-Pope
AUBURN HILLS, MI - MARCH 30: Kentavious Caldwell-Pope /
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The legal battle over whether millions of taxpayer dollars can be used to fund the Detroit Pistons’ move to Little Caesars Arena has taken another turn.

Just days after dropping their lawsuit against the City of Detroit and the Downtown Development Authority, the same two plaintiffs have filed an amended Pistons lawsuit that seeks the same end from a different angle.

According to Christine Ferretti of The Detroit News, the amended lawsuit argues that the Detroit school board has the power via state law to put the usage of $34.5 million in public bonds for the Detroit Pistons’ new practice facility and other expenses related to the franchise’s relocation to Little Caesars Arena in downtown Detroit up for a public referendum.

The plaintiffs, D. Etta Wilcoxon and Robert Davis, filed a suit seeking the same end — that the usage of the funds they contend are earmarked for Detroit’s schools and parks should be put to a public vote — about a month ago. In that action, they asked for a temporary restraining order to prevent the city from giving the Pistons or any other involved party any money until a referendum could be held.

The request for the order was denied, and after the plaintiffs were threatened with sanctions, the suit was voluntarily dropped. Davis made a statement at the time that other litigation seeking a similar result would be forthcoming, however.

This new suit is the litigation that Davis promised, but it hasn’t been initiated without some contention. Last Friday, the city and the Downtown Development Authority petitioned the court to block the dismissal of the original suit. Judge Mark A. Goldsmith, whose jurisdiction this matter has been transferred to after he denied the plaintiffs’ request for the restraining order, denied that petition as well. An emergency hearing on the new suit has been scheduled for July 19.

The question before Goldsmith is, does the school board have the authority under Michigan law to put whether or not the tax dollars can be used to reimburse the Pistons and other parties for their expenses up for a public vote? The original suit argued that it was an infringement of voters’ rights for the city to use the tax funds without voter approval. This suit argues that the school board should make the decision on whether or not the matter will be decided via referendum.

A public referendum is probably something that the Pistons would rather not see take place. Given the swing of public sentiment against tax-funded stadiums and the likelihood of a strong voter education campaign premised around a narrative of the Pistons “taking money from school children,” it’s quite possible that the referendum would fail.

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Despite what the Pistons may have told the court, whether or not the team will relocate to Little Caesars Arena isn’t in doubt. What’s up in the air is whether or not the team and its partners will be reimbursed for their expenses with taxpayer dollars, and the school board may ultimately make that decision.