This is our salary table with a hypothetical Demar extension.
http://i.imgur.com/mzGLEMS.png
Adding in about 3 million for draft picks, we'd have to trade one of Ross or Carroll, Patterson, and not re-sign anyone. Tax isn't a concern though at least. Then you could use the MLE on a bench piece (and ideally have Carroll, Patterson, Ross etc traded for bench guys too).
Cap in 2017 is gonna be nuts though. Blake, Russ, Rose, Steph (for now), Ibaka, Teague, Redick, Korver.
#tradeforKevinLove