DOWNTOWN CLEVELAND, OH (WOIO) - It appears the $140 million Quicken Loans Arena Transformation is dead.
As reported earlier today, the Cleveland Cavaliers withdrew from the deal due to time delays caused by a ruling that required a voter referendum on participation by the City of Cleveland.
"The Q Transformation Deal was an economic development project that would have resulted in more revenue for the City of Cleveland. It would have created construction and permanent jobs, modernized the facilities and guaranteed the Cavs would remain in our city until at least 2034. The deal was an investment in Cleveland's future and the future of our neighborhoods. It was good for Cleveland and its people. This is a tremendous loss," said Cleveland Mayor Frank Jackson in a prepared statement following the Cavs' announcement.
Paul Orlousky spoke with Jackson earlier this month in a one-on-one interview that, in part, covered the Q transformation project.
The Mayor voiced his support for the project, which would include an $88 million investment of public funds.
It was a lengthy interview, but concerning the Q it boiled down to a simple question: Is it a good deal? The Mayor replied, "Yeah, for the City of Cleveland
it's a good deal. Any time you get somebody who's your tenant willing and you borrow money to fix up your property and your tenant is willing to pay half of that and not only pay half of it but guarantee the loan and so if you can't pay they will pay if there's any overruns on it then they will pay the overruns."
The Cavs withdrew their support after construction on the project was delayed due to a prospective referendum being placed on the ballot by the Washington, DC-based Metro Industrial Areas Foundation, represented locally by the "Greater Cleveland Congregations" (GCC), Service Employees International Union District 1199 and the Cuyahoga County Progressive Caucus.