The Detroit Downtown Development Authority on Tuesday approved a memo of understanding outlining the plan for Michigan's NBA team to share Little Caesars Arena with the Detroit Red Wings. 

The move would cost taxpayers an additional $34.5 million in taxpayer money for arena improvements. 

Taxpayers, through the DDA, are already contributing $250 million to construction of the $732 million Little Caesars Arena.

"The city of Detroit is going to land a professional basketball franchise for a $34 million contribution ... half of which is going to be savings from refinancing," said Mayor Mike Duggan.

He said the plan will require further approvals from City Council and other entities. 

"It's going to be a busy first quarter next year," Duggan said. 

The move could bring an additional 150 to 200 employees into the city, and the Pistons have agreed to more community benefits including renovations to city basketball facilities and 20,000 free tickets for city youths every season.