The Cleveland Cavaliers have announced they are withdrawing their share of funding for proposed renovations to Quicken Loans Arena. In the original plan, the Cavs and Quicken Loans would pay for $70 million, while the remaining $70 million would come from taxpayer money. Part of the renovation plan included refurbishing 40 gyms in Cleveland’s rec centers and high public high schools.
A group called the Greater Cleveland Congregations submitted a referendum because they believe the money should go toward renovating inner-city neighborhoods. While the Ohio Supreme Court reviews the referendum’s signatures, the start of construction has been delayed.
In a statement, the Cavs explained the pushed-back start has led to increased constructions costs:
The prospective referendum will cause the groundbreaking of The Q Transformation to miss the current construction cycle, 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.
Quicken Loans Arena — one of an abnormally high number of sports venues named after a bank — is among the oldest venues in the NBA. In addition to creating 2,500 construction jobs, the renovations would have brought several upgrades to stretch The Q’s lifespan to 40 years and made it more attractive for a future All-Star Game.
While the rising construction costs are a valid concern, the decision to withdraw will also fuel conspiracies that LeBron James plans to leave the Cavs as a free agent next offseason.
[WKYC]
