CLEVELAND (92.3 The Fan) –Cleveland mayor Frank Jackson green-lighted the proposed renovation of Quicken Loans Arena Tuesday.
After Cleveland City Council voted 12-5 on Monday night in favor of committing an estimated $88 million towards the project, which will come from admissions tax proceeds collected by the city, Jackson signed the approved ordnance.
Jackson’s signing of the legislation was broadcast by the city on Facebook live.
The admissions tax is already currently used to service bond debt on the original construction of the arena which opened in 1994 and is scheduled to be paid off in 2023. The new agreement extends the those payments for the new work for another 10 years until 2034.
The Cavs have committed to covering 50 percent of the renovations with the city, Cuyahoga County and Destination Cleveland picking up the balance.
With financing, the actual cost of the project could total $244 million. The county will chip in approximately $16 million using the reserve fund from construction of the convention center and Hilton Cleveland Downtown projects while a portion of the county bed tax used to help fund Destination Cleveland will be diverted to the project as well.
The team has also pledged to cover any cost overruns or estimated tax shortfalls with increased rent payments.
As part of the agreement, the Cavs will extend their lease in the building to 2034 and the NBA has committed an All-Star weekend to the city.