Quicken Loans Arena

Cleveland City Council on Monday approved committing an estimated $88 million for upgrades to Quicken Loans Arena.

(John Kuntz, cleveland.com)

CLEVELAND, Ohio -- Cleveland City Council on Monday approved committing an estimated $88 million for upgrades to Quicken Loans Arena.

Council's vote approved the ordinance 12-5, meaning that it passed with emergency status. It takes effect immediately.

The deal was the last piece of a package involving the city, Cuyahoga County, Destination Cleveland and the Cavaliers that will finance $140 million in improvements to the arena.

Debate over the issue, was at times contentious. A group of six councilman -- Zack Reed from Ward 2, TJ Dow from Ward 7, Mike Polensek from Ward 8, Kevin Conwell from Ward 9, Jeff Johnson from Ward 10 and Brian Cummins from Ward 14 -- blocked the issue from being approved two weeks ago.

Monday was no different right up to the final vote. City Council chambers was filled with several hundred people, many vocal opponents of the deal.

Cummins sided with the majority Monday evening, becoming the 12th vote needed to make the ordinance effective immediately.

What's the deal?

The work at the arena would dramatically alter the facility's appearance, creating more space for dining, bars and public gathering. The Cavaliers contend that the work will keep the 22-year-old arena competitive with other cities as they vie for major concert acts and other shows.

Cuyahoga County has agreed to sell the bonds to finance the project. Cleveland's role starts in 2024 when it would begin contributing about $8 million a year raised from admissions tax on events at The Q toward paying off those bonds. The city has agreed to contribute about $88 million over 11 years.

What happened Monday afternoon?

At a news conference Monday afternoon on the steps of City Hall, Council President Kevin Kelley, County Executive Armond Budish and Cavaliers President and CEO Len Komoroski announced a series of commitments the Cavaliers made to sweeten the deal.

Those commitments were:

The Cavaliers pledged to match dollar for dollar the amount of money that was committed to debt service on the project from the admissions tax if that exceeds the remaining amount that goes to the city. If that happens, the Cavaliers will write the city a check for the difference.

The Cavaliers agreed to refurbish the basketball floors in city recreation centers, more than 20 in total. After the announcement, the city confirmed that the Cavs will also refurbish high school basketball courts in Cleveland public high schools.

Additionally, the Cavaliers announced it will donate all admissions revenues from its road-game watch parties at The Q during the NBA playoffs to benefit Habitat for Humanity. Over the last two seasons, those watch parties have raised more than $1 million from admissions that was donated to several charities. It will now be directed to Habitat for Humanity to help renovate 100 homes over three years.

What changed with Monday's votes?

"My [initial] no vote was principally with the overall issue of sports stadium funding," Cummins said in an interview after the meeting.

But he said his position softened some over the last week or so as he heard presentations from Mayor Frank Jackson's administration and listened to their arguments in favor of the agreement.

And the sweeteners announced Monday also helped. He estimates that over the last five cash-strapped years Cleveland would have had as much as $4 million more in its general fund had there been a guarantee like the one the Cavaliers made on the admissions tax.

Ultimately, Cummins said, he expects this deal will tie Cleveland closer to Cavs owner Dan Gilbert, opening the door for more work together to address blight in the city.

"He's proven to be helpful with us as he has been in Detroit," Cummins said.

What happens now?

What remains to be seen is whether groups opposing the deal will seek a referendum to repeal it.

The Greater Cleveland Congregations and Cuyahoga County Progressive Caucus, two social advocacy groups, have panned the deal, saying that the city has much more serious needs in its neighborhoods - crime, poverty and unemployment - and that they must be addressed first.

While areas downtown have benefited from The Q's success, those benefits have not flowed out to neighborhoods, they said.

Pastor Jawanza Colvin of Olivet Institutional Baptist Church, a strategy leader for Greater Cleveland Congregations, noted the neighborhood struggles after the council meeting. He contrasted the deal which will commit millions in tax dollars to a glass atrium at The Q with statistics that show more than half of Cleveland children live in poverty.

The caucus and Greater Cleveland Congregations could work with the Service Employees International Union on a referendum campaign.

Colvin said the three groups have immediate meetings scheduled to make their decision.

If they decide to seek a repeal, they will have to collect about 6,000 valid signatures from registered voters in Cleveland on petitions they file with the clerk of council within 30 days of Monday's vote.

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