CLEVELAND, Ohio - Cleveland Cavaliers owner Daniel Gilbert has killed the $140 million deal to renovate Quicken Loans Arena.

Gilbert folded his cards and walked away following a months-long battle over financing and a vote that could have resulted in a denial of Cleveland's proposed support of the project.

The move comes eight months after the Cavs announced the planned transformation of the arena, aimed at making the 22-year-old building competitive by creating more space for dining, bars and public gathering.

Community groups opposed spending tax money on the upgrades. And 18 days ago, the Ohio Supreme Court ordered Cleveland City Council Clerk Pat Britt to accept referendum petitions submitted by a coalition that opposes Cleveland's use of tax dollars for the upgrades.

The court ruling left the project in limbo.

The Cavs said in a statement that "time delays due to the 'referendum' attempt make the project unfeasible."

Related story: What's lost with the Cavaliers' decision to kill The Q deal?

The team cited delays in construction "which pushes the overall price tag of the project higher due to rising construction costs. In addition, a time sensitive financing package that included historically low interest rates would be negatively impacted by further delay due to a prospective referendum exposing the project to an expected higher interest rate environment."

The referendum opposing Cleveland City Council's approval of $88 million in admissions taxes to the project would have had to be placed before voters, which likely would not have happened until next year.

Cuyahoga County delayed selling bonds to finance the project while Cleveland's role was being contested. The bond sale had been approved in March.

The Cavaliers had hoped to begin work right after the playoffs ended in June. Officials said this summer that extensive planning and work had been underway on the transformation even though no work could begin.

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

Plans included a glass front, public gathering spaces and dining areas that would let fans watch the game while they eat. The Q is one of the oldest NBA arenas without a major update.

Who was supposed to pay?

The deal was a four-way arrangement among the city, county, Destination Cleveland and the Cavs.

The Cavs agreed to pay half the cost of the upgrades to the Q. The Cavs promised to pay for any over-budget construction costs and to cover the public's share if taxes are less than anticipated. The Cavs also said they would not add a user fee or any other ticket surcharge to cover their costs.

Cleveland's share was to come from admission taxes collected over 11 years on tickets sold for events, beginning in 2024.

The Cavs would also would have agreed to extend their lease of the building from 2027 to 2034. Monday's move means Gilbert could decide to move or sell the team by 2027.

What happened?

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

The group led a petition drive in part to get a community benefits agreement under which the Cavaliers would contribute toward a fund to help Clevelanders. Members envisioned that fund being under the control of a board staffed with a mix of public officials and private citizens -- but not the GCC.

Following the Ohio Supreme Court ruling, the organization said in a press release that it remained open to negotiations. None occurred.

"Since January GCC has called on the Cavaliers, the City of Cleveland and Cuyahoga County to work on a substantive Community Benefits Agreement worthy of the $160 million of public money directed to the Q Arena expansion," James Pearlstein, GCC's lead organizer and spokesman, said in a statement. "GCC makes no apologies for prioritizing ending the cycle of using our jails to house the mentally ill or seeking to employ the jobless. GCC makes no apologies for standing up for our most vulnerable residents in our most distressed communities who feel like second class citizens in their own city. GCC makes no apologies for standing up for the 22,000 people who signed petitions and were subjected to voter suppression tactics rather being able to exercise their democratic rights. The loss of this deal squarely lies at the feet of those who put old school politics above the interests of the people."

The Cuyahoga County Progressive Caucus, which supported the referendum, was pleased the Cavs decided to cancel the Q project, political director Steve Holecko said in a statement. "The Cavaliers, Mayor Jackson and Cleveland City Council all know that the project would have been soundly defeated at the ballot box. This is their way of saving face," he said.

What's next?

Cleveland City Council President Kevin Kelley said there's been no discussion of repealing the legislation that allowed the city to partner with Cuyahoga County on the upgrades. But Kelley conceded that it would be something to consider now that the Cavaliers have pulled out of the agreement.

"Perhaps we could just repeal it," Kelley said Monday in an interview. "There's really no sense in going forward if the Cavaliers aren't a partner in it."

Opponents of the deal had urged the city to put the repeal issue before voters Nov. 7, but it appeared unlikely that would happen. City Council isn't scheduled to meet again until Sept. 18, late enough that a vote on repealing the ordinance would be pushed into 2018.

Now, though, the timeline isn't the issue. More important, Kelley said, is the impact caused by the loss of the upgrades, starting with loss of 1,000 construction jobs that would have materialized beginning in September.

"There's really no hurry at this point," Kelley said.

"The damage is done," he said. "This has cost the city of Cleveland tens of millions of dollars that's just not going to happen now."

What are officials saying now?

County Executive Armond Budish: "This is a significant loss for the community. It jeopardizes the future of two key economic generators: The Q and the Cavs."

The deal would have guaranteed that the Cavs would stay in Cleveland through 2034 and it would have created and retained many hundreds of jobs for people living in our neighborhoods.

And the deal did not raise anyone's taxes.

Contrary to misinformation put out by the opposition, the death of this deal actually means there will be less money, not more, available for social and community services for those most in need. By killing this deal, the opponents have harmed the future for our neighborhood residents."

Mayor Frank Jackson: "The Q Transformation Deal was an economic development project that would have resulted in more revenue for the City of Cleveland. It would have created construction and permanent jobs, modernized the facilities and guaranteed the Cavs would remain in our city until at least 2034. The deal was an investment in Cleveland's future and the future of our neighborhoods. It was good for Cleveland and its people. This is a tremendous loss."

Dave Gilbert: "Destination Cleveland supported the renovation of The Q to ensure a competitive arena with an NBA franchise remained in Cleveland for the next generation," said Gilbert, president and CEO of Destination Cleveland. "We're disappointed to hear the transformation will not move forward after such a strategic solution to fund the renovation was developed. With only half of the funds coming from public sources, it appeared to be a very good deal for a city of our size."

Len Komoroski, Cavs CEO: "Quicken Loans Arena brings over 2 million people a year to downtown Cleveland and last year alone produced $245 million in economic activity including the RNC and the NBA Finals. This facility is Cleveland's gateway to the world as many of our events are broadcast nationally and internationally. The investments over the years into The Q have paid back multiples in economic impact, job creation and tax generation. It is very disappointing to see our further private investment into The Q Transformation project reach this ending point."

U.S. Rep. Marcia Fudge: "This is a disappointing day in Cleveland's history. The Q Project would have been very, very good for the city, its neighborhoods and all of its residents. The Greater Cleveland Congregations' opposition to this good project was extremely misguided. I am deeply concerned that this small group of people have derailed the project, along with its thousands of jobs, the extension of the Cavs' lease, and the NBA All-Star week and its projected $100 million economic impact.

"I am also concerned about the long-term implications of this type of politicking. Their strong-arm tactics have no place in good community organizing, and, to the contrary, could have a chilling effect on future, cooperative economic development efforts in Cleveland.

"The Cavaliers were offering a very good package that would have guaranteed that The Q would remain a competitive venue for many years to come. The Q is an undisputed economic asset for Cleveland - it generates jobs and millions of tax dollars annually that are used to provide services to the city's neighborhoods. The arena, which is publicly owned, needs to be upgraded to remain competitive. This was our opportunity via a public-private partnership.

"Without an upgrade, I am concerned that The Q will eventually become a second-class venue, with fewer events and, therefore, fewer jobs and tax revenues. That hurts all of Cleveland, and the Cavaliers' future."