The Cleveland City Council yesterday "approved committing" an estimated $88M for upgrades to Quicken Loans Arena, according to a front-page piece by Robert Higgs of the Cleveland PLAIN DEALER. The vote was 12-5, "meaning that it passed with emergency status" and "takes effect immediately." The deal was the "last piece of a package involving the city, Cuyahoga County, Destination Cleveland and the Cavaliers" that will finance $140M in improvements. The debate over the issue was "at times contentious." The City Council chambers were "filled with several hundred people, many vocal opponents of the deal." Work on the arena would "dramatically alter the facility's appearance, creating more space for dining, bars and public gathering." Cuyahoga County has "agreed to sell" bonds to finance the project, while the city's role starts in '24, when it would begin contributing about $8M a year "raised from admissions tax on events at The Q." Cavs CEO Len Komoroski also announced a "series of commitments the Cavaliers made to sweeten the deal." Among the commitments:
* Match dollar for dollar the amount of money that was committed to debt service on the project from the admissions tax if that exceeds the remaining amount that goes to the city.
* Refurbish the basketball floors in city recreation centers, more than 20 in total.
* Donate all admissions revenues from watch parties at The Q during the NBA Playoffs to help Habitat for Humanity.
Higgs notes over the last two seasons, those road-game watch parties have raised "more than" $1M. What "remains to be seen is whether groups opposing the deal will seek a referendum to repeal it." If opponents "decide to seek a repeal, they will have to collect about 6,000 valid signatures from registered voters in Cleveland" (Cleveland PLAIN DEALER, 4/25).
QUICK TIMETABLE: In Cleveland, Jay Miller noted the Cavs "want to start construction as soon as the playoffs are over in June, and Cuyahoga County needs the next two months to prepare and sell a bond issue before construction can start" (CRAINSCLEVELAND.com, 4/24).
