CLEVELAND, Ohio (92.3 The Fan) – The Ohio House passed a state budget Wednesday that includes $600 million in bonds for the Browns proposed Brook Park indoor stadium.
The team is planning to build a $3.4 billion indoor stadium and mixed-use development off Snow and Engle roads in Brook Park after exercising a purchase option agreement for 176 acres of land at the end of 2024.
The Haslam Sports Group has sought a 50-50 public-private split for the $2.4 billion indoor stadium while privately funding the development that would be built in phases. The team proposed tax revenues generated from the complex would repay the cost of a combined $1.2 billion in bonds issued by the state, county and city of Brook Park while also generating an additional $1.3 billion for the state as well as $2.1 billion for Brook Park and the county over 30 years.
The $600 million commitment from the state is considered by the Browns to be crucial to push the project forward. The Haslam Sports Group is seeking $422 million from Brook Park and $178 million from the county.
County executive Chris Ronayne has pledged no county support and staunchly opposes the Brook Park project. At the NFL’s owners meeting in Palm Beach, Florida, owners Jimmy and Dee Haslam said they can move forward without county participation, but that is not their preference.
Representatives from the Haslam Sports Group told Ohio lawmakers last month the team was willing to place $38 million in an escrow account to cover any shortfalls in tax revenue for bond repayment. The fund could grow to close to $150 million through interest by 2054 according to team officials.
The Ohio House budget scrapped a plan presented in Governor Mike DeWine’s budget proposal to double the tax on sports gaming companies from 20% to 40% with the new money going to a new fund to help pay for stadium construction projects statewide that could have generated over $130 million annually.
DeWine’s proposal would have allowed the Browns to request up to 40% of construction costs for their stadium project as well as mixed use developments next to it in Brook Park and their training facility in Berea. In total, the Browns would have been able to apply for $1.4 billion from the state for the dome and two development projects.
The budget will head to the Ohio Senate for debate and passage. It remains to be seen if the $600 million bonds for the Browns survives.
The budgetary process is expected to be concluded by June 30, at which point we will know if the Brook Park project moves ahead or the team has to settle for a renovation of the existing stadium.
Both the Browns’ lawsuit in U.S. District challenging the legality of the Modell Law as well as the city of Cleveland’s lawsuit in Cuyahoga County Court seeking injunctive relief and damages from the team are still pending.
