By the late 1970s, the neighborhood surrounding the Olympia had been in decline since the 1967 riots. In 1977, the Red Wings announced that they would be moving to a proposed arena in suburban Pontiac. The city of Detroit would counter with a proposed riverfront arena for much less rent that Pontiac was seeking. The package included operational control of both the new arena, nearby Cobo Arena and the adjoining parking structures. The Red Wings accepted Detroit's offer.