CLEVELAND, Ohio (92.3 The Fan) – The final state budget has been hammered out in conference committee and includes a $600 million state contribution towards a new enclosed stadium for the Browns in Brook Park.
The committee opted for the senate plan of using $1.7 billion unclaimed property money to create a state Sports and Culture Facility Fund with the Browns receiving a grant for their $2.4 billion proposed enclosed stadium.
The state budget is scheduled to be voted on Wednesday, June 25 and head to Governor Mike DeWine’s desk for his signature by July 1. DeWine has the authority to line-item veto items he does not approve of.
DeWine has yet to receive or see the language of the final budget and his office declined immediate comment.
All unclaimed funds owed to residents of the state of Ohio will still be available to their rightful owners through the state's claim process.
DeWine originally proposed to double the tax on sports gaming companies to 40%, with the new 20% in revenue, expected to generate over $130 million annually, going towards a statewide stadium construction fund to be managed by a project committee.
In April, the Ohio House rejected DeWine's plan and included $600 million in financing to be funded through bonds in the budget they passed.
The state plans to recoup its investment through tax revenues generated by the new stadium and development.
As an insurance policy, the team is expected to be required to place $50 million in escrow to backstop any tax revenue projection shortfalls. Should those funds be depleted, the team would have to place an additional $50 million in escrow. After 16 years, the team would recoup any unused funds from that escrow account.
The team originally sought a 50-50 public-private split to cover the cost of the 67,500-seat enclosed stadium to be built 80 feet in the ground adjacent to Hopkins International Airport.
In May, Browns chief operating officer David Jenkins sent a letter to Cuyahoga County Executive Chris Ronayne informing him the team is prepared to move forward with the project without county participation. Ronayne has joined Cleveland mayor Justin Bibb and other downtown Cleveland business leaders in opposing the project.
The Browns sought $178 million and a backstop for $422 million in bonds for the city of Brook Park from Cuyahoga County, and instead will seek a private solution which increased their commitment to $1.378 billion plus cost overruns for the enclosed stadium.
The Browns hope to break ground on the new projected $3.2 billion stadium and development in early 2026 with an August 2029 completion date.