DALLAS -- Despite pressure to slow down the approval process, the Cuyahoga City Council plans to vote March 28 on a $140 million debt issue to finance renovations to the Quicken Loans Arena.
The Cuyahoga County on Tuesday voted 8 -2 to move the legislation out of committee and onto the regular March 28 council agenda despite charges from some community critics that the legislation is being fast tracked.
The legislation would authorize the issuance and sale of $140 million of debt to help finance renovations of the arena, home to the National Basketball Association's champion Cleveland Cavaliers.
Six of 11 council members will have to approve the legislation for it win approval.
Members of Greater Cleveland Congregations have asked that any deal approved by the county and city include a separate, dollar-for-dollar match of all public investment slated for the Q deal into a Community Equity Fund, which the group wants Cavaliers' owner Dan Gilbert to start with $35 million. The $35 million that GCC wants from him would instantly capitalize the fund and provide start-up costs for the construction of two mental health crisis centers in Cleveland, one on the east side and one on the west. In addition to the crisis centers, GCC would like to fund "Job Access Pipelines" and "Neighborhood Capital Projects" with the community dollars.
The plan to issue $140 million in bonds calls for the Cavaliers to pay $122 million in increased rent.
The project is aimed at upgrading and extending the life of the 22-year old venue, as well as resolve what are described as important structural and operational deficiencies in the facility.
Backers say the upgrades will avoid the need to build a new arena at an estimated cost between $500 million and $750 million. County officials have retained Squire Patton Boggs LLP, and Forbes, Fields & Associates Co. LPA to serve as co-bond counsel on the 2017 Arena Bonds. Stifel Nicolaus & Co. has been hired as financial advisor.
