Cavs cancel $165 million renovations of Quicken Loans Arena

[CelticsElite]

For your daily scum cavs news- today its Tax payers vs Gilbert.

The Cleveland Cavaliers have canceled $140 million plans to renovate Quicken Loans Arena.

Community groups opposed spending tax money on the upgrades.

Eighteen days ago, the Ohio Supreme Court ordered Cleveland City Council Clerk Pat Britt to accept referendum petitions submitted by a coalition that opposes Cleveland's use of tax dollars for the upgrades.

Cuyahoga County delayed selling bonds to finance the project while Cleveland's role was being contested. The bond sale had been approved in March.

The Cavaliers had until Sept. 15 to begin the project. The franchise was paying half the cost of the upgrades.

Cleveland's share was to come from admission taxes collected over 11 years on tickets sold for events, beginning in 2024.

Gilbert could move or sell the team by 2027


http://www.cleveland.com/cuyahoga-county/index.ssf/2017/08/cavs_owner_dan_gilbert_kills_deal_to_renovate_quicken_loans_arena.html


Tldr- Rich billionaire guy wants to use broke normal citizens tax payers money to make his toy more luxurious

[kraidstar]

Yeah, this sort of thing has got to stop.

I'm glad some citizens stepped up here to prevent this thievery.

[Rob from Perth]

I read 'Cavs cancel...' and just about had a heart attack - thought it was going to be followed by 'Irving trade!'

[Moranis]

Yeah, this sort of thing has got to stop.

I'm glad some citizens stepped up here to prevent this thievery.

The public funds were mostly related to taxes for tickets sold at the arena and taxes on hotel rooms with a very small amount coming from a budget surplus fund on prior construction projects that are already complete and came in under budget.  No other public funds were going to be used.  No taxes were going to be raised on anyone as it was just existing taxes and only for those attending the Q or staying in hotels.  The Cavs would have paid about half of the cost through increased rent at the arena.  The community group that stopped the deal just wanted those ticket/bed taxes to go somewhere else, instead it makes it far more likely that the Cavs are sold or move out of downtown when the lease with the Q is up in 2027 and it ensures that the NBA All Star game, which would have generated tens of millions of dollars for the city, will not happen in Cleveland.  It was a terrible strategic move by that citizen's group and they got support based on a lot of misinformation. 

Here is a link that shows the breakdown.

http://www.cleveland.com/cavs/index.ssf/2016/12/quicken_loans_arena_home_of_le.html

•The Cavs will provide the biggest chunk of that, roughly $122 million, through increased rent payments for the Q.
•Cleveland will provide more than $88 million, using its admissions tax on tickets to Q events from the years 2024 through 2034.
•More than $44 million will come from the budget of Destination Cleveland, which will give up a piece of the county bed tax it receives now.
•The county will provide $16 million, by dipping into the reserve fund it set up for the convention center and Hilton Cleveland Downtown, both of which are complete.
•Nearly $9 million will come from admission taxes expected from future Cavs playoff games, otherwise payable to the county under an existing agreement with the city, related to the original Gateway bonds.
•And a bit more than $3 million will come from expected increases in sales taxes on Cavs merchandise, food and alcohol sold at the Q, otherwise payable to the county.


It was a pretty good deal for the City and would have generated far more than it cost.  All of the community leaders, outside of that one group, are pretty disappointed and upset. 

[Roy H.]

As much as I want to bash the Cavs, they seemed willing to hold up their end of the bargain here. It was the public financing that became encumbered.  While public funding of stadiums is often nothing more than extortion, at least here the increased taxes were directed at those using the facility.

[action781]

Moranis, thanks for that breakdown.  The one thing I don't like about this is it feels like the Cavs basically choosing where their share of taxes are getting used in a way that benefits them.  It's like if I go to the state of MA and request they build a fence around my front yard for $2,000 and say, "Well its ok, you won't be using tax payer money, this paving will be completely funded by the $2,000 that I've spent in sales taxes this year my expected sales taxes to be paid on purchases over the next 5 years."

[Moranis]

Moranis, thanks for that breakdown.  The one thing I don't like about this is it feels like the Cavs basically choosing where their share of taxes are getting used in a way that benefits them.  It's like if I go to the state of MA and request they build a fence around my front yard for $2,000 and say, "Well its ok, you won't be using tax payer money, this paving will be completely funded by the $2,000 that I've spent in sales taxes this year my expected sales taxes to be paid on purchases over the next 5 years."

The Cavs didn't choose, the City Council did and they felt that it was worth it to have upgrades on the arena which likely would lead to increased ticket prices (and thus more tax dollars overall), the Cavs also would have extended their lease 7 years generating a lot of income for those 7 years, and the NBA would have given Cleveland an all star game, which would have generated around 100 million dollars for the city (I mean think of the hotel room prices alone for that weekend, let alone food, merchandise, travel, tickets to various events, advertising dollars, etc.).

[timpiker]

The last time a Cleveland team TURNED DOWN a new stadium or renovations was in 1995 when Fart Modell moved the Browns.

[Moranis]

The last time a Cleveland team TURNED DOWN a new stadium or renovations was in 1995 when Fart Modell moved the Browns.

There has been a lot of speculation today that when the lease is up in 2027 the Cavs won't be in Cleveland, perhaps Seattle if they don't have a team by then. 

[footey]

Maybe this is a ploy to move the Cavs to Los Angeles so that they can keep Lebron.

Ha.

[More Banners]

The last time a Cleveland team TURNED DOWN a new stadium or renovations was in 1995 when Fart Modell moved the Browns.

There has been a lot of speculation today that when the lease is up in 2027 the Cavs won't be in Cleveland, perhaps Seattle if they don't have a team by then.

Wasn't refusal to publicly fund a venue the reason Seattle lost their NBA team?

[timpiker]

Maybe this is a ploy to move the Cavs to Los Angeles so that they can keep Lebron.

Ha.

Now that's clever!

[SHAQATTACK]

Seattle Cavaliers...

poor ring to it .

when Lebron , Love and Irving are gone

Seats ....by one get 5 free ,   family nite ( up to 8 children FREE) ,    two tickets, pizza and beer 5 bucks .     

All 40 dye in the wool fans show up......can't pay light bill.

Those awful Cavs announcers can left for North Korea and live with their own kind.

100 's of. vendors go,out of business .....leave for Seattle.

Once again Cleveland Football is at the forefront of Cleveland sports .....

[CelticsElite]

I read 'Cavs cancel...' and just about had a heart attack - thought it was going to be followed by 'Irving trade!'

haha