Brandon Pettigrew is a free agent. His modus operandi as the Lions' tight end is well-documented. While he has made some big plays and posted some good numbers, the amount of dropped passes has been alarming. And Pettigrew does not have the explosive speed to split a seam down the field nor is particularly effective running after the catch.
He is a free agent. The answer appears to be to let him leave, use the financial resources in other areas of need and draft a tight end. The Lions already have Joseph Fauria in the pipeline, but he's skill specific and might be a stretch as an every down player.

Jace Amaro: Highly productive tight end fits Lions

I don't see a tight end in this draft worth the 10th overall pick, and the Lions have need at wide receiver or cornerback in that spot.
Second or third round is different. There definitely could be equal value there. I find it difficult to believe North Carolina's Eric Ebron, who is projected as a late first-rounder, will last, but Washington's Austin Seferian-Jenkins and Texas Tech's Jace Amaro  might, and I'm not sure if they wouldn't fit the Lions better than Ebron anyway. Seferian-Jenkins is an extraordinary talent and can speed a split a seam deep. Amaro was an incredibly productive college player. Each are equal talents (four-star recruits out of the same high school class, bordering on 5-star; it means they can run and will likely light up the watch in the 40).
If the Lions wait after the second round to draft a tight end, I see the best available as being C.J. Fiedorwicz from Iowa. He likely won't run the same 40-time as Seferian-Jenkins or Amaro, but he has very good hands, is a fluid athlete and a solid blocker, which, by the way, still carries much importance at the position. Notre Dame's Troy Niklas is going to be good NFL player, too, and is more athletic than Fiedorwicz.
Our live chat today. Talked about Lions and NFL Draft, Tigers and Brad Ausmus as manager, Michigan-MSU rivalry, Pistons and Tigers issues: