A closer look at the $140 million 'Q' transformation project budget

CLEVELAND, OH (WOIO) - Despite opposition, the Quicken Loans transformation project is one step closer to getting approved.

County council voted 8-to-2 Tuesday evening to send the $140 million project to full council for a third reading.

"I was willing to spend more time because of the complexity of the project, but the council decided to call the role (Tuesday)," said District 2 Councilman Dale Miller. "It's a very complex project and the deal is not perfect."

Miller isn't the only council member who feels questions about the construction project still remain.

"I'd like to find out what's the total impact, not just one piece of our entertainment value, but all the components that go together," said District 6 Councilman Jack Schron.

Schron wanted to take more time to talk about the project, and wait until June when the state budget is released.

"My simple suggestion was, the Cavs and The Q have been looking at this deal for over three years. What's wrong with waiting 90 days until the state budget comes out to find out what its impact is going to be on our county budget?" he said. "I think the more facts we get, the more we can make an intelligent decision about whether this should be going forward or not going forward."

The Q is 23 years old, making it the second-oldest arena in the NBA. It's also the largest economic driver in Cuyahoga County.

Cavaliers and Quicken Loans CEO Len Komoroski said the construction would keep The Q competitive.

"One of our major structural flaws is our lack of public space, egress issues, flow, limited concourse, limited gathering neighborhood space," Komoroski said.

According to the plan, the Cavs will pay for half of the multi-million dollar project. The remaining $70 million would come from self-generating funds.

New numbers, released Tuesday, break down the costs even further.

Total Hard Costs: $123,400,000

  • $96,000,000: Projected Construction Cost
  • $5,200,000: Staffing and General Conditions
  • $1,000,000: Escalation
  • $500,000: Liability Insurance
  • $2,700,000: General Contractor Fee
  • $1,100,000: Entitlements and Approvals
  • $7,600,000: Technology Upgrades
  • $1,500,000: Steam Line Relocation
  • $7,000,000: Furniture, Fixtures and Equipment
  • $1,000,000: Surveyor and Materials Testing Fees

Estimated Contingency: $7,200,000 

Total Soft Costs: $10,300,000

  • $3,400,000: Architect Design Development
  • $4,100,000: Architect Construction Documents
  • $2,200,000: Architect Construction Administration
  • $100,000: Reimbursable Expenses
  • $500,000: Administrative Expenses

Total Project Costs: $140,900,000

"It is an economic engine and that is the objective here to preserve it for the long term," said Komoroski.

The third reading, which is when county council could decide if the project is approved or not, is scheduled for March 28.

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