8 GROUNDCOVER NEWS FUN Pinball Pete's comes to the heart of Ann Arbor TERRI DEMAR Groundcover vendor No. 322 The Arnold brothers first started their arcade business in East Lansing. They took over a donut shop which happened to have an elephant on top of the roof. One night while staying up late, the brothers were joking around and painted the elephant bright pink. Ted Arnold, the owner of Pinball Pete's, asked his mom to make a papier-mâché cowboy to sit on the elephant. They decided to call the arcade "Pinball Pete's" and it went off from there. After success in East Lansing, Arnold expanded to Ann Arbor, with an arcade on William, then Packard (both now closed) and the store we all knew and loved on South University. When asked about his reason to move to Ann Arbor, Arnold reminisced about visiting all the used record stores in high school; "Ann Arbor was a cool town." In 2025, after more than three decades, the South U location closed. With 13 years still on the lease, they had to move out of the building because Landmark Property management (based out of Georgia) purchased the building with plans to redevelop the lot for luxury student housing. Landmark Property owns and operates five off-campus high-rise complexes, totalling more than 1,500 units, in the city of Ann Arbor. There was a public hearing at the downtown Ann Arbor District Library on December 5, 2023, and Landmark showed up and saw lots of people who were opposed to their takeover. Many people in Ann Arbor have met their husbands, wives and best friends — what have you — at Pinball Pete’s, so clearly this was an important place to townies and Ann Arborites (yes, there’s a difference). For example, Arnold was recently invited to a wedding because the marrying couple had their first kiss, first date, and got engaged at Pinball Pete's. So many people have had positive experiences there. Landmark was in shock. Eventually Top: Ted Arnold, owner of Pinball Pete's (left) with Terri Demar (right) at the relocated arcade, which "soft-opened" March 13, 2026. they paid for the sprinkler system after Pinball Pete’s found a new place with the help of Scot Greig, the owner of Bill’s Beer Garden and other downtown properties. Arnold shared with us that Greg called him personally to invite him to rent one of his spaces, the old Douglas J. Salon on Liberty Street that had been vacant for many months. Arnold has a little less space now in the new building at 500 Liberty St. because they had to install elevators, bathrooms with changing tables and a drinking fountain. But, location means everything. It’s going to be the new entertainment district with all neon signs, from Scorekeeper’s to Knight’s Inn to Pinball Pete's. This district started because the area already had neon lights at the Michigan Theater and State Theater. All of this was meant to be; everything fell into place. Groundcover News publisher Lindsay Calka and I walked around to see the customers who thrive on Pinball Pete's. We saw that there are many pinball machines, a Jurassic Park game and Dance Dance Revolution downstairs. On the main floor they have air hockey, Space Invaders, mini basketball and more. Also they have a game where you win money, not just tickets. In conclusion, Pinball Pete's is now in the heart of Ann Arbor where it should be. So it’s not just about nostalgia, it’s an invitation to come and see Pinball Pete's, make memories, and establish a new generation of game players. Arnold may have to take out another 20-year lease because it looks very promising, and the future is as bright as their neon signs. APRIL 17, 2026 Left: Demar tries out the Jurassic Park game. Right: Pinball Pete's still offers old-style games, such as Donkey Kong and Pac-Man.
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