Tax-sharing plan proposed that will allow Cleveland and Independence to share income tax revenue as Cavaliers move practices to Independence

Cleveland, Ohio, March 27, 2006 – Cleveland Mayor Frank G. Jackson and Independence Mayor Fred P. Ramos announced a plan today to split income tax revenue from the Cleveland Cavaliers payroll when the team begins practicing in Independence prior to the 2007-08 season. The announcement was made at a joint news conference in the Quicken Loans Arena with Cavaliers and Quicken Loans Arena CEO Mark Stornes.

Legislation will be introduced in both Cleveland and Independence that, when passed, will allow the cities to share revenue generated by the Cleveland Cavaliers’ payroll. The Cavs currently practice in the City of Cleveland at the Quicken Loans Arena, but plan to build a new facility in Independence.

Mayor Jackson, a long-time proponent of regional economic cooperation, says that this situation is a perfect example of how cities within the region can work together to boost the economy.

“We can and should encourage businesses to locate where it is in their best interest to do so, without stealing jobs and revenue from our neighbors,” said Mayor Jackson. “This revenue sharing strategy will allow the Cavs to build a new facility where it makes sense for them to do so and allow both Independence and Cleveland to reap the benefits. I thank Mayor Ramos for his efforts and willingness to work with the City of Cleveland, and the Cavaliers organization for their commitment to building success for Cleveland and the region.”

Mayor Ramos stated, "I applaud Mayor Jackson and his staff on initiating an early relationship built on trust and cooperation between our communities. We will work together, to the best of our abilities, on the Cavaliers project to benefit both our communities and the positive economic impact it will have on each. I also look forward to working with Mark Stornes and the Cavaliers organization to build and bring their practice facility to the City of Independence."

"The spirit of cooperation shown by Mayor Jackson and Mayor Ramos has been critical in placing the Cavaliers in a position to move forward with building the best practice facility in the NBA. They have been team players, while still representing their respective communities' interests well," said Cavaliers and Quicken Loans Arena CEO Mark Stornes. "The new Cavaliers practice facility will play a very important role in the continued development of the championship-caliber culture we are committed to having. We are thankful that Mayor Jackson and Mayor Ramos have been supportive in helping devise this win-win-win equation for Cleveland, Independence and the Cavaliers."

Both Cleveland City Council and Independence City Council will deliberate over the legislation. Mayor Jackson and Mayor Ramos are both optimistic that the legislation will pass and the revenue-sharing plan will move forward.