Features
Quicken Loans Set For Facelift, Expansion
The Cleveland Cavaliers and local taxpayers will split the cost of renovations to the city-owned
Courtesy of the Cleveland Cavaliers – Quicken Loans Arena Rendering
The renovations will change the exterior appearance of the arena, significantly expand the size to add more space for dining, bars and public gathering and facilitate easier navigation for attendees. A report showed that some of the largest challenges facing the 20,750-capacity arena were outdoor queuing, crowded concourses and navigation difficulties.
A main strategy to address these concerns seems to be to add more space. The Cavs have played in “The Q” since 1994, and the team brought home an NBA championship last season. The venue hosts more than 200 events annually and the Cavs said it generated $245 million in direct spending, created 4,800 jobs and brought in $44 million in taxes in 2016.
With the arena being a significant element of Cleveland’s economy and public image, the deal to finance renovations draws from a number of public sources, according to The Plain Dealer.
The County is borrowing $140 million to finance the immediate construction, and the loan payments and interest will come out to around $244 million.
The government also wants to keep about $38.5 million stored for future sports facility improvements, which means $282 million is the number officials are working toward.
The city of Cleveland will put in $88 million, mostly coming from ticket taxes from 2024 to 2034. Destination Cleveland, a private, nonprofit marketing agency that receives public funds from hotel taxes, will kick in $44 million.
Cuyahoga County will contribute $16 million. The team will contribute $122 million in increased rent payments, $9 million in playoff admission taxes and $3 million in food, merch and alcohol.
As a part of the agreement, the Cavaliers are extending the team’s lease on the building to 2034.
The arena won’t close during the construction, which is expected to run from 2017 to 2019. Once construction is finished, the team hopes to host an NBA All-Star Game.