A federal lawsuit seeks to block some public funding of Little Caesars Arena in Detroit and a new Detroit Pistons headquarters without a vote from city residents.
The lawsuit Thursday 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.
The arena, which will be home to the NHL's Detroit Red Wings and the NBA's Pistons, opens this fall.
The lawsuit was filed by activist Robert Davis and D. Etta Wilcoxon, who is running for City Clerk.
The Detroit Downtown Development Authority, a public entity involved in the project, says it will review the lawsuit and respond accordingly.
The Ilitch family, which owns the Red Wings, is financing most of the project.