LANSING, Mich. -- A state board on Wednesday unanimously gave the go-ahead for a new Red Wings hockey arena in downtown Detroit to be paid for in part with $284 million in tax dollars even as the broke city works through bankruptcy proceedings. Michigan Gov. Rick Snyder and others defended against criticism that the $650 million project should be financed entirely with private money because the city currently cant provide basic services and retirees are facing cuts in their pensions. The 18,000-seat arena is designed to be a catalyst for more development and to link downtown and midtown, turning a blighted area into a business, residential and entertainment district. "This is part of investing in Detroits future," said Snyder, a Republican who blessed a state-appointed emergency managers request to take the city into bankruptcy last week. "Thats the message we need to get across. ... As we stabilize the city governments finances, as we address those issues and improve services, Detroit moves from a place where people might have had a negative impression -- although there are great things already going on -- to being a place that will be recognized across the world as a place of great value and a place to invest." The Michigan Strategic Fund Board approved the Detroit Downtown Development Authoritys request to use economic development taxes for the project. The board also took a preliminary step toward issuing $450 million in bonds to build the arena, to be paid off in no more than 30 years by the Red Wings owner and the city. Red Wings owner Mike Ilitch has long wanted a replacement for the 32-year-old Joe Louis Arena located a few miles away. The new complex would be close to the Lions Ford Field and Tigers Comerica Park near Interstate 75 and Woodward Avenue. Under the plan, the authority would own the arena and event centre complex. The Red Wings owner would have exclusive rights to use, manage and operate it, and hold naming rights. No new taxes or funds from the cash-strapped city would be needed. The state Legislature last year approved a bill to help finance the project by allowing the use of tax dollars collected by the downtown development authority. Senate Democratic leader Gretchen Whitmer, an East Lansing Democrat, opposed the measure as a drain on funding for Detroits public schools. "Now that the citys actually in bankruptcy those concerns are even more justified at this point," spokesman Bob McCann said Wednesday. "Were all supportive of new development in Detroit. But its difficult to tell the residents of the city that this is more important than public safety or street lights." Snyder argued the project will increase the citys tax base in the long run and create jobs. Fifty-six per cent of the overall project cost would be private and 44 per cent public, though about 60 per cent of the actual $450 million arena cost would come from tax revenues. Another $200 million --all but $23 million of it private -- is planned for projects nearby that could include rehabbing existing buildings and vacant lots for a hotel, stores, parking deck and residential units. Olympia Development, owned by Ilitch and his wife, said the funding split for comparable major sports complexes in other cities in the past decade has averaged 75 per cent public and 25 per cent private. Construction of the arena is anticipated to be done by 2017. Its also expected to host other entertainment events. No design has been made public. Representatives for Olympia Development said the project will create 400 more permanent jobs and 5,500 construction jobs. At least half the construction jobs must go to city residents. Other approvals are needed by local agencies. "There is some additional due diligence that has to happen as a result of the Detroit bankruptcy," said Michael Finney, president and CEO of the Michigan Economic Development Corp. "But we have not identified anything that would signal pulling back from the project. We are motivated to continue moving forward and we trust that the project will be successful." DETROIT - Justin Verlander walked off the mound after his seventh inning of work, and manager Jim Leyland was waiting for him at the bottom of the steps, ready to give the Detroit ace the customary handshake that would signify the end of the right-handers night. So Verlander took a detour, cutting across to his right and using a different entrance to the dugout. "I tried to circumvent the system," Verlander said. "I tried to go the other way and sneak around him, but he was too quick for me." Leyland met Verlander at the bottom of that other set of stairs, and that was that. The Tigers went on to a 7-5 win over the Cleveland Indians on Friday night in the opener of this three-game series. Verlander allowed three runs in seven innings, and Jose Valverde held on through a shaky ninth to give Detroit a 3 1/2-game lead over the Indians atop the AL Central. Victor Martinez homered and had three hits for the Tigers, and Torii Hunter added three hits of his own. Detroit led 5-0 before Cleveland scored three runs in the fifth off Verlander. That was all the Indians could manage against the Tigers ace in losing their fifth straight game. Verlander (8-4) allowed seven hits on the night. He walked two and struck out six. As for his little end-around of Leyland? The Detroit manager didnt sound pleased about it. "You might think that was comical, but I dont think that was comical at all," he said. Verlander seemed surprised that Leyland was upset. "I wasnt trying to play a joke on him. I just wanted to stay in the game," Verlander said. "He always stands there and sticks out his hand so I figured maybe if I snuck around him hed let me go back out there." Joaquin Benoit pitched the eighth for Detroit, and Jose Valverde came on with a four-run lead in the ninth. He allowed solo homers to Jason Giambi and Drew Stubbs, but Nick Swisher grounded out with a man on second to end it. "They were two split-fingers, and they just golfed them. That happens," Leyland said. "But the key to that was that he didnt walk anybody. Im happy with that." Ubaldo Jimenez (4-4) allowed five runs — three earned — in three-plus innings. Cleveland lost its ninth straight road game.dddddddddddd Detroit is trying for its third straight division title, and the Indians have emerged as the top early threat from the rest of the AL Central. Jimenez beat Verlander in Detroit on May 11, and Cleveland took two of three in that series. But the Tigers swept a two-game series in Cleveland later that month, the start of a stretch in which the Indians have lost 13 of 17. Martinez opened the scoring in the second with a solo homer to right, his fifth of the year. Detroit then managed two more runs without hitting the ball out of the infield. Jhonny Peralta walked and Brayan Pena grounded into a force play. Then Ramon Santiago hit a groundball to first, and Swisher tried to make a tough throw to second to get the lead runner. The ball got away for an error on Swisher, and Avisail Garcia walked to load the bases. After Andy Dirks struck out, Hunter hit an RBI single, and Miguel Cabrera walked to force in another run. "I felt great in the first inning, but it was gone in the second inning and I started trying to do too much to get someone out," Jimenez said. "It went the other way in a hurry." Garcia doubled to lead off the fourth and scored on a single by Dirks. Hunter singled to chase Jimenez, and Cabrera bounced into a double play, bringing another run home to make it 5-0. Verlander hasnt allowed fewer than three runs in any of his last six starts, but the damage was limited to the fifth inning Friday. Michael Bourn hit an RBI single, and Jason Kipnis drove in two more runs with a bases-loaded double that Hunter was unable to catch against the wall in right. Cleveland, which is without shortstop Asdrubal Cabrera (right quad strain), could get no closer. Swisher made another error in the fifth, which put men on first and third with nobody out. A double play grounder by Pena made it 6-3. Pena added an RBI single in the seventh. NOTES: Detroits Prince Fielder had his hitting streak snapped at 11 games. ... Hunter was hitless in his last 14 at-bats before starting Fridays game with a double and two singles. ... Detroits Rick Porcello (2-3) takes on Clevelands Justin Masterson (8-4) on Saturday. ' ' '