CLEVELAND – The Cleveland Cavaliers have withdrawn from their commitment to help fund a $140 million Quicken Loans Arena transformation project.
The team said Monday that the addition of a prospective referendum being placed on the ballot “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.”
The team also said “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 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,” said Len Komoroski, CEO of the Cleveland Cavaliers. “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.”
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Article Courtesy of WEWS News 5 Cleveland
Picture Courtesy of The Washington Post and Getty Images