Following a vote on Monday, the Cleveland City Council is closer to approving funding for a renovation of Quicken Loans Arena.
The home of the Cleveland Cavaliers could receive a multi-phase overhaul as part of a proposed private/public partnership that was revealed late last year. Cuyahoga County has approved the sale of bonds for the plan, while the Cavaliers, Destination Cleveland, and the city are each expected to make financial contributions.
In this city’s case, it could contribute $88 million over 11 years by using funds from its admission tax revenue at Quicken Loans Arena. The motion by the city council on Monday allows that contribution to move forward, but the measure fell one vote short of outright approval. That it means that a third reading for the proposal will have to take place next week. More from Cleveland.com:
Council voted 11-6 to suspend its rules on an ordinance that will contribute a share of the admissions taxes generated by events at The Q toward the debt service on the project. The deal affects admissions taxes from 2024 through 2034.
Without 12 votes, though, the ordinance will require a third and final reading April 17, when it likely will be approved easily.
Cuyahoga County already has agreed to sell bonds to finance the construction work. The Cavaliers want to start that work this summer.
Portions of the revenue that has been proposed to fund arena renovations is currently being utilized to pay off the city’s debt service on both Quicken Loans Arena and Progressive Field, the home of MLB’s Cleveland Indians. The debt service on those facilities is expected to be paid off in 2023.
If the renovation is approved, the Cavaliers would extend their lease at Quicken Loans Arena, and are expected to make a push to host a future NBA All-Star Game.