INDEPENDENCE, Ohio -- The Cavaliers extended a $2.7 million qualifying offer to swingman Alonzo Gee on Friday, meaning the team can match any offer he receives in order to keep the restricted free agent.

"Certainly Alonzo is a primary target to return for us and he's a priority for us," General Manager Chris Grant said. "He did a fantastic job for us last year and continues to grow."

The Cavs made a $1 milion qualifying offer to forward Luke Harangody, but have not announced whether they will extend a similar offer to center Semih Erden. .

Gee, an undrafted free agent from Alabama who arrived from the D-League during the 2010-11 season, moved from sixth man to the starting lineup last season, averaging 10.6 points, 5.1 rebounds and 1.8 assists in 63 games, including 31 starts. When he returned from the lockout, Cavs coaches marveled at how much he had improved.

Right to work: Draft choices Dion Waiters and center Tyler Zeller, along with Grant, coach Byron Scott, forward Tristan Thompson and Dr. Ricardo Rodriguez, interim chair of the Cleveland Clinic Children's Hospital, helped dedicate the new family room for the Cleveland Clinic Children's Hospital for Rehabilitation (CCCH) Shaker Campus on Friday.

Rookie of the Year Kyrie Irving was unavailable because he was taking part in an NBA Cares project in the New York area.

Z on Z: Zeller -- Z2? -- talked about having the opportunity to work with former Cavs big man Zydrunas Ilgauskas.

"I'm actually very much looking forward to learning from him," Zeller said. "He's obviously a fantastic player and somebody I'm looking forward to learning from and being able to work with. I think he can teach me a lot of things about how to transition from college to the NBA and try to make me as good of an NBA player as I can be.

"I talked to him briefly but I know over time I'm going to continue to bounce ideas off of him and work with him."

Settlement reached: The NBA has reached a settlement agreement with the NBA Players Association in the recent arbitration proceeding filed on behalf of ex-Cav J.J. Hickson, Chauncey Billups, Jeremy Lin and Steve Novak. Under the settlement, the union agreed to limit the scope of the ruling by arbitrator Kenneth Dam in exchange for the league's agreement to drop its appeal.

The rule will now be that players who are claimed from waivers will have the same "Early Bird" rights as if they had been traded, but will not have full "Bird" rights unless they are claimed through the league's amnesty procedure. Early Bird and Bird rights enable teams to exceed the salary cap to resign their own players. Players must spend three years with a team to earn full Bird rights, two years for Early Bird rights.

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