Ohio legislators are considering a proposal to allocate $600 million to the construction of a new $3.4 billion stadium for the NFL’s Cleveland Browns.
WKYC.com reports State Sen. Jerry Cirino, a Republican, is advocating for the money to come from the state’s $3.7 billion in unclaimed funds. Out of those funds, $1.7 billion would be set aside for a new “Sports and Culture Facilities Fund,” with the Browns borrowing the $600 million in a “performance grant” that would be paid back over 16 years in tax revenues from the stadium and an adjacent new mixed-use development.
“For each of those 16 years, we outlined the incremental taxes that the new stadium and mixed-use development would provide to the state through income taxes, sales tax and CAT (commercial activity tax),” said Cirino, who added the Haslam Sports Group, the owners of the Browns, would put $50 million into escrow that would be siphoned in the event revenues fall short of projections. If that $50 million is used early, the Browns would provide another $50 million through a line of credit.
The Senate’s proposal is different from the budget passed in April by the Ohio House that called for $600 million in state-backed bonds to be used for the Browns’ stadium project, which would be located in the city of Brook Park, a Cleveland suburb. The team called on the city and Cuyahoga County to provide an additional $600 million in bonds that would be covered with an increased admissions tax, parking tax, bed tax and rental car surcharge. However, Cuyahoga County Executive Chris Ronayne rejected that idea and denounced the Senate plan.
“They’re giving it ($600 million) away to the Haslam Sports Group,” said Ronayne, referring to the team’s owners. “$600 million of your taxpayer dollars. They’re picking your pocket. We see the methodology the state Senate has presented to pass through your dollars to Haslam Sports Group for the Cleveland Browns’ next stadium as really a loss of their moral compass. This budget as proposed by the state Senate is morally bankrupt.”
Ronayne also called on the Browns to abandon their Brook Park plan and stay in downtown Cleveland and “renovate the stadium, transform the lakefront with us. Be a part of something bigger than you. Be a part of this downtown.”
But Ohio Senate President Rob McColley, a Republican, stated, “We are going to get our money back. It’s something that’s actually going to be a net revenue gain for the state of Ohio over the course of the life of the asset. It’s something that I think sets a good parameter for potential future projects.”
