Cuyahoga County is moving toward issuing bonds for a renovation to Quicken Loans Arena, home of the Cleveland Cavaliers.
During a meeting on Tuesday, the Cuyahoga County Council voted to move the proposal to issue $140 bonds out of committee. The vote does not guarantee final approval–the council still has to consider it as part of a regular agenda, which is expected to take place on March 28–but it does allow the project to move forward.
Unveiled by the Cavaliers in December, the renovation project calls for Quicken Loans Arena to receive upgrades over two phases. The Cavaliers would extend their lease at the arena through 2034, and are expected to host an NBA All-Star Game once the project is complete. More from Cleveland.com:
If approved, the plan to issue $140 million in bonds — which involves no new taxes — will cost a total of $282 million over 17 years, with loan interest. The Cavs will pay $122 million in increased rent.
The plan includes a reserve fund for professional sports facilities. Here’s how the bill breaks down:
- The Cavs will pay $122 million for the renovations through increased rent payments.
- Cleveland will provide more than $88 million, using its admissions tax on tickets to Q events from the years 2024 through 2034.
- More than $44 million will come from the budget of Destination Cleveland, which will give up a piece of the county bed tax it receives.
- The county will provide $16 million, by dipping into the reserve fund it set up for the convention center and Hilton Cleveland Downtown, both of which are complete.
Six of 11 council members will have to approve the legislation for it to become official.