CLEVELAND, Ohio (92.3 The Fan) – The Cleveland Browns are at the goal line to receive state funding to build a new enclosed stadium and mixed-use development in Brook Park.
The state senate passed their budget bill on Wednesday, which includes $600 million in funding for the project.
The budgetary process now moves to conference committee, which will be comprised of two republicans and one democrat from each chamber to settle the differences between the house and senate budget, for reconciliation.
Following the reconciliation process, which will determine the construct for the Browns to receive the $600 million in state support, the final budget goes to Governor Mike DeWine’s desk at the end of the month for his signature and it to become law.
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.
And now the senate plan, which scrapped both plans with the exception of creating a statewide fund for stadium construction that DeWine proposed by using $1.7 billion in unclaimed funds accumulated from at least 10 years ago to create the state Sports and Culture Facility Fund with $600 million earmarked for the Browns.
All unclaimed funds will be available to their rightful owners through the state's claim process under the senate plan.
The money set aside for Brook Park would be paid back through tax revenues generated by the new stadium and development. As an insurance policy, the team would 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.
Once the conference committee decides which plan to use, or combination of them, the final reconciled budget goes to DeWine for his signature.