The Cleveland Cavaliers are committing $45 million more to an ongoing Quicken Loans Arena renovation, while construction remains on schedule.
Quicken Loans Arena closed in June to accommodate extensive construction work. The arena will reopen in October and stay in business until the summer of 2019, when it will temporarily close once again to allow for construction on the final phase of the renovation.
With the reopening date approaching, the Cavaliers released an extensive update of the project on Tuesday. Quicken Loans Arena is set reopen as scheduled for a Justin Timberlake concert on October 2, while owner Dan Gilbert and the organization are contributing $45 million more in private investment to the project.
As it was originally planned, the overhaul to Quicken Loans Arena was a $140 million project funded through a public-private partnership. Under the terms of that agreement, the Cavaliers are responsible for cost overruns. With the team’s additional $45 million contribution, the total price tag will increase to $185 million. The team’s investment will go toward several additions to the arena, including an improved locker room. More from Crain’s Cleveland Business:
The original $140 million investment for the project was a 50/50 split with the Gateway Economic Development Corp. of Greater Cleveland, the quasi-public agency created by the city of Cleveland and Cuyahoga County to finance and own The Q, Progressive Field and the Gateway Plaza. The deal put the burden of cost overruns on the Cavaliers’ shoulders….
“As we got into (the renovation), it evolved and with that comes additional investment, which we realized was our obligation,” said Len Komoroski, CEO of the Cavaliers and Quicken Loans Arena, in a telephone interview. “It’s really about what puts The Q in the position to be sustainable and impactful for the long-term as a community asset.”
The Cavaliers’ portion of the funding will cover all non-public space, including premium seating, locker rooms and team offices, audio-visual equipment, lighting and multimedia upgrades, as well as a significant portion of the public space updates, which includes concourse improvements and square footage increases.
“Every area of the building is being touched and as you go into this type of project there are opportunities to enhance even further,” Komoroski said. “It’s one thing to look at it conceptually on paper and it’s another thing when you’re in the process and can see opportunities that present themselves. We’re blessed to have ownership that looks at from the perspective of what’s the right thing to do for the long-term.”
The ongoing renovation project reflects NBA trends, as its completion will result in new social spaces, a glass front entrance, new and renovated premium areas, and more. A press release issued by the Cavaliers on Tuesday provided an extensive update on the project, including what event attendees can expect to see when Quicken Loans Arena reopens and some of the amenities that will be added when the renovation is fully complete. As part of the agreement relating to the project, the Cavaliers have extended their lease through 2034.
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