As a venue, The Q is the largest driver of economic activity in Cuyahoga County, hosting more than 200 diverse ticketed events that attract over two million visitors to downtown Cleveland each year.
Community marketers use The Q as a core asset in their efforts to bring major events to Cleveland and represent our community across the nation and the world.
The Q is a huge magnet for Cleveland, hosting more than 200 diverse ticketed events and over 1,400 private events that draw over 2 million patrons each year – many of whom reside outside of Cuyahoga County.
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In 2016, The Q generated $245 million in direct spending and $44 million in state and local tax revenue, of which $18 million went to the City of Cleveland. This tax is used to pay for critical public services and to address important community needs.
The Cavs have now committed that for every dollar of Admissions Tax that goes to the Q Transformation debt, another dollar will go directly into the City’s General Fund that would be available to address critical community needs.
The perception of our community is often shaped by images from inside and outside The Q and around downtown Cleveland that are broadcasted to viewers during nationally and internationally televised events at the arena. Most recently, the Republican National Convention, the 2nd largest media event in the world with over 15,000 media members, carried the Cleveland name and scene to every corner of the globe. Journalists from around the world were downtown for the NBA Finals, which were broadcast in 215 countries and 47 languages.
Quicken Loans Arena has not only generated huge economic dividends, but it has helped boost Cleveland’s image and reputation. Events like the RNC and NBA Finals present incredible opportunities to showcase Cleveland to the world. The value of this marketing exposure has changed the dialogue and visual representation about Cleveland both domestically and around the globe. The Transformation of our arena ensures we build on the positive momentum currently in place.
Quicken Loans Arena opened in 1994, but is now the oldest publicly-owned arena in the NBA. The Transformation of The Q will eliminate any discussion about the need for the construction of a much more expensive new venue (which can easily be in the $500-$750+ million range), extending the useful life of the arena to 40 years -- one of the longest terms for an NBA arena. The average life of an NBA arena is 22 years. The Q today is nearly 23 years old (the Richfield Coliseum operated for 20 years). It will also result in extending the Cavs lease through 2034, thus ensuring that this economic dynamo will continue to generate multiple benefits for Greater Cleveland for many, many more years to come.
Competition is Fierce
» Narrow concourse with bottleneck conditions during events
» Small entry areas lead to bottlenecks & longer wait times
» Currently difficult navigating through The Q
» No pre- or post-event gathering space for visitors
» Outdoor lines in cold weather
» Lack of street activation and interaction with neighborhood
Upgrading The Q will eliminate any potential discussion about the need for the construction of a much more expensive new venue and will also result in extending the Cavs lease through 2034, thus ensuring that this economic dynamo will continue to generate multiple benefits for Greater Cleveland for many, many more years to come.
Make the arena’s interior more visible from the outside, making The Q more contemporary, inviting, marketable and better connected to the City.
Create an enhanced, dramatic visual sense of arrival to downtown Cleveland with Gateway as its front door.
Expand The Q’s public areas including critical entryways, concourses, neighborhood zones, and ancillary function space by almost 40% across multiple event levels. This will also open up The Q, making outdated and bottle-necked public areas much less constricted.
Provide large public gathering places for event attendees prior to events, during event breaks and for satellite activities occurring at the same time to main events in the arena bowl.
The NBA All-Star Game reaches fans in more than 200 countries and territories in more than 40 languages. Additionally, hundreds of members of the international media converge on the host city to provide firsthand coverage of NBA All-Star events.
The weeklong basketball celebration is one of the most anticipated sporting events of the year and features a full slate of events designed to make the host city the basketball capital of the world.
Finally, as part of NBA All-Star, the NBA works closely with the local community to conduct hands-on service activities designed to leave a lasting, positive impact on underserved populations in the host community.
The Q is a huge magnet to downtown Cleveland, with more than 200 diverse ticketed events and 1,400 private events annually that attract 2 million+ patrons. In addition to NBA basketball and professional hockey, the Q also hosts arena football, concerts, family shows and other sporting events. These events have generated huge economic dividends for the City and County.
The Q has been at the core of stimulating over two decades of continued development, growth and impact in the Gateway neighborhood and downtown Cleveland, including over $1 BILLION in development around the Gateway area alone.
The Q also plays a major role in enhancing the City’s reputation across the country and around the world. The Q was a critical factor in securing the 2016 Republican National Convention. Events like the Republican National Convention and NBA Finals, in addition to their economic impact, present incredible opportunities to showcase Cleveland and are already generating positive dialogue about Cleveland around the globe.
There will be no new taxes or increase in existing taxes for The Q Transformation. The public portion of funding will come from revenue streams that already exist and are generated or directly impacted by The Q.
The private-public partnership for the Transformation of The Q is a smart and fair investment for the City of Cleveland and Cuyahoga County.
The Transformation will cost $140 million, with half of the investment funded privately by the Cavs organization and the other half funded through pre-existing, self-generating funds and destination facility sources. Any potential project construction cost increases would be covered privately by the Cavs/Quicken Loans Arena organization.
While the Cavaliers are paying for at least 50% of the Transformation project, the public will continue to own 100% of the arena and property.
Transforming The Q will cost $140 million and extend the life of the building to 40 years – where the average facility lasts 22 years - also negating the need to build a new arena, which can easily range in cost between $500 and $750+ million.
Quicken Loans Arena is a publicly-owned building. The Cavs are a tenant, but the building is used by many others. The Cavaliers have invested hundreds of millions of dollars in the facility over the years. Regarding public/private partnerships, the team has spent more, in fact, on The Q than any other NBA team has on their respective arena in comparably-sized markets. The Q Transformation agreement is the most public-friendly new arena or renovation agreement in comparable markets.
Professional sports in the United States have always been a partnership between the teams and the communities they play in and are part of. Around the country, public investment in stadiums and arenas is the norm because the return on investment is evident. In Cleveland, that return on investment has been absolutely great.
The Cavs will pay for half the cost of the Transformation and will invest many millions more in the facility between now and 2034.
The public portion of funding will come from revenue streams that already exist and are generated or directly impacted by The Q.
With respect to The Q and the Cavaliers:
But beyond that, Dan Gilbert and his Family of Companies believe in, and have heavily invested in, Cleveland. The Rock Ventures Family of Companies have invested more than $1.5 billion in downtown Cleveland and Cuyahoga County. There are now 12 companies here that employ more than 4,500, and they have donated millions of dollars for key civic projects like the Public Square renovation. The Cavaliers organization has given back more than $45 million to the community through charitable donations, scholarships and various education initiatives.
Dan Gilbert and his Family of Companies, including the Cavs, have led recent efforts to increase the fight against neighborhood blight resulting in over $60 million dollars of federal Hardest Hit Funds that are critical for our Cleveland neighborhoods.
Specifically, Cuyahoga County received $60 million in 2015 to initiate a demolition program for 5,000 blighted homes. To date, $25 million has been expended of which 82% of that has been used to address neighborhood blight in the City of Cleveland. The Cavs organization also recently contributed $100,000 to help launch the initial phases of a Western Reserve Land Conservancy program also focused on local blight elimination.
As part of this project agreement, the Cavaliers are continuing their ongoing commitment to the Cleveland community: