The domed stadium in Brook Park that would be the new home of the Cleveland Browns can’t happen without the state’s help, according to owners Jimmy and Dee Haslam.
In their first public presentation to state lawmakers, the Haslams' representatives said they’ll provide some upfront cash to move the deal forward, along with putting up $1.2 billion in their own money and getting $600 million from local communities.
The Haslam Sports Group wants $600 million in 30-year bonds backed by the state, to be repaid by taxes raised by the $3.4 billion stadium and mixed-use development around it. And HSG's chief administrative officer and general counsel Ted Tywang told the House Arts, Athletics and Tourism Committee the team will put up $38 million, an idea that could be replicated by the Cincinnati Bengals or any other team wanting new facilities.
"This idea of cash collateral doesn't really exist in sports facility funding. This would be kind of the first time, as far as we know, that an upfront payment has been done," Tywang said. "It is $38 million, which is the present value of $150 million at the back end of the lease."
Tywang said that HSG's analysis predicts $6.3 billion in state and local taxes over the 30-year lease, $2.9 billion of which would be state tax revenues. And he said not only would be the bonds be repaid, but the team isn't asking for money from other programs or projects.
"I would think about it not as, this $600 million could go somewhere else, because there's going to be a return for the state, that $1.3 billion. Yes, it's over time, but those can be used for other needs that the state deems appropriate," Tywang said. “There are no existing revenues that we're taking. It's not like we're taking from a health and human services budget at the state or at the local level for our ask. It is only revenues that are generated by the project that wouldn't exist but for this private investment.”
Tywang said ground could be broken as early as the first part of next year. But when asked if it would go forward without the state-backed bonds, Tywang said, "We think in a market like Cleveland and Northeast Ohio that the project is only viable through a public-private partnership. So the $600 million is really critical."
Some lawmakers raised concerns. Ranking member Dontavius Jarrells (D-Columbus), who described himself as "a recovering Browns fan", asked if the project would just shift economic development from downtown Cleveland, not generate new activity. Tywang said the stadium is a game-changer.
"There's so much else great that's happening downtown that I think it's frankly disrespectful when people imply that we're going to cripple downtown when we leave," Tywang said. "We want this to be complementary, not competitive."
Jarrells also shared a concern that the team might move at the end of the lease.
"When we talk about what the Haslam Sports Group and the Browns are trying to do, we say three things: win consistently, take great care of our fans and give back to our community," Tywang said, noting that the team—which went 3-14 last year—is "working on" the first of the three things. "The Haslams are not going to move the Browns. In fact, they're investing this unprecedented amount of, private dollars into a publicly owned building. Exactly. To ensure that our future is secure in in Northeast Ohio. And again, we view this as a 50 plus year solution that has limbs, have grandsons, and they run around the facility. And their vision is that those guys are running the Browns someday, long after you and I are gone."
But some lawmakers were interested. Chair Melanie Miller, who hails from Brook Park, praised Tywang's presentation, and said, "It's exciting to see that the possibilities that could happen, the development in Northeast Ohio and, really a win win for for Ohio."
After asking if it goes forward without the bonds, Rep. D.J. Swearingen (R-Huron) asked if there's a chance Put-in-Bay - which is in his district - could get the project. Rep. Terrence Upchurch (D-Cleveland), who said the Haslams are his constituents, noted that other people in his district struggle to afford tickets and wondered if ticket or concessions prices might increase, but added, "I'll still be a fan whether you stay on the lakefront or go to Brook Park."
The bond plan will be in the House version of Gov. Mike DeWine’s budget, which includes doubling the sports betting tax to create a facilities fund, which lawmakers have been cool to.
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