COLUMBUS, Ohio - The Ohio Supreme Court has ordered Cleveland City Council Clerk Pat Britt to accept referendum petitions submitted by a coalition that opposes Cleveland's use of tax dollars on upgrades at Quicken Loans Arena.

The 4-3 ruling on Thursday leaves the project in limbo, at least in the short term. Cuyahoga County delayed selling bonds to finance the project while Cleveland's role was being contested. The Cavaliers had hoped to begin work right after the playoffs ended in June.

The decision also likely scuttles Cleveland's hopes of hosting the NBA All-Star Game in either 2020 or 2021. The NBA recently warned Cleveland that if work on the upgrades did not start by Sept. 15, the city's bid would not be considered.

You can read the court's ruling below. Mobile users click here.

What's the project?

The Cavaliers want to make $140 million in improvements to modernize the Q with a glass front, public gathering spaces and dining areas that will let fans watch the game while they eat. The Q is one of the oldest NBA arenas without a major update.

Representatives for the team, which manages the arena, say they have been "punching above their weight" in terms of attracting top entertainment acts to the arena, but fear that without a renovation, Cleveland will have trouble remaining competitive.

The Cavaliers, Cuyahoga County, the city of Cleveland and Destination Cleveland agreed to split the cost. The county would borrow the $140 million. The Cavaliers would take on half. Cleveland's share would come from admission taxes collected over 11 years on tickets sold for events at The Q, beginning in 2024.

What prompted the court fight?

A coalition led by Greater Cleveland Congregations, an advocacy group made up of urban and suburban religious institutions, argued that Cleveland's struggling neighborhoods would not benefit from the deal.

They called for a community benefits agreement under which the Cavaliers would contribute toward a fund to help Clevelanders. They envisioned that fund being under the control of a board staffed with a mix of public officials and private citizens -- but not the GCC.

The coalition, which also includes the Cuyahoga County Progressive Caucus and Service Employees International District 1199, sought a community benefits package focused on three specific areas:

Development of jobs in neighborhoods - permanent jobs that offer a chance for advancement.

Targeted capital improvements in neighborhoods - both brick-and-mortar projects and blight-reduction work.

Development of mental-health centers on the East Side and West Side to help people with mental illnesses. The goal is to aid people in crisis, perhaps heading off an arrest and leading to more effective treatment. They would try to link individuals with social services and perhaps provide some temporary housing.

After City Council approved the deal April 24, the coalition launched a signature drive in hopes of getting a referendum on the ballot to repeal council's action.

Before that signature drive could begin, though, Mayor Frank Jackson signed the ordinance into law and also signed a contract with Cuyahoga County committing to The Q deal. The ordinance, passed as an emergency measure, took effect immediately upon signing and authorized Jackson to complete the deal with the county.

When the group tried to file the signatures with the clerk of City Council, the clerk, through her deputy, refused to accept them, citing prohibitions in the U.S. Constitution against interference with a lawful contract. That prompted the group to demand that the city law director file court action to force the clerk to accept the petitions. Otherwise, the group said, it would sue.

After the law director filed this case, the coalition was allowed to join the suit.

What did the court rule?

Writing for the majority, Justice Sharon Kennedy rejected several arguments made by Britt's attorneys.

The court held that Cleveland's charter clearly contemplates that citizens have the ability to pursue a referendum on an emergency ordinance, even if that ordinance has taken effect.

It also rejected an argument that the ordinance authorizing The Q deal was administrative in nature and therefore not subject to a referendum.

And it held that Britt did not have the authority to evaluate whether a referendum would unconstitutionally interfere with a legal contract - a reason the city stated when Britt, through a deputy, refused to accept the petitions.

"The clerk had a clear legal duty to perform the ministerial function of her office -- verifying the sufficiency of the petition signatures," Kennedy wrote.

Kennedy was joined by Justices William O'Neill, Patrick Fischer and R. Patrick DeWine in the ruling.

Justice Terrence O'Donnell dissented. He was joined by Chief Justice Maureen O'Connor and Justice Judith French.

The dissenters did not argue against the majority's legal rationale. Rather, they said the case should have been dismissed because Cleveland's law director, who filed the action in the Supreme Court, could not be an adverse party in the case to the clerk of City Council.

"I recognize that the taxpayers who circulated the referendum petitions have been permitted to intervene in this action. However, that does not save this case from dismissal," O'Donnell wrote.

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