Republicans are considering adding a $600 million package of state-backed bonds for a $3.4 billion domed stadium and development for the Cleveland Browns to the Ohio budget, which comes out Tuesday.
But some Democratic state lawmakers want more details about tax revenue the Haslam Sports Group, which owns the Browns, said will be raised by the project in Brook Park, noting that there's no state or independent analysis of those numbers.
Some of those concerns are also shared by an expert in Ohio sports facilities deals over the past three decades.
Draft legislation has been proposed to add $600 million in 30-year bonds to the budget, and to eliminate Gov. Mike DeWine's proposed sports facilities fund that would be financed by doubling the tax on sports gambling operators. Rep. David Thomas (R-Jefferson) wrote on X that he submitted the amendment. The bonds would cost the state around $40 million a year, totaling nearly a billion dollars over 30 years.
The Haslam Sports Group has said the domed stadium and surrounding development in Brook Park would bring in $1.3 billion more than the state's debt service obligation. The group projects income and sales tax revenue generated by what would be Ohio's first and only domed stadium will be four times what it is at the current lakefront stadium in downtown Cleveland.
"We're talking about things that don't really exist that we can bring to the region," said Ted Tywang in a presentation to the Ohio House Arts, Athletics and Tourism Committee on March 11. "And I'll tell you that every real estate developer we talked to and a lot of the tenants say, we wouldn't call you back about an opportunity in Brook Park, Ohio, if we didn't have this domed stadium. But that's a game changer."
"I believe that the Browns are being way too optimistic about the proceeds from each of those taxes, because they're assuming a large number of events which historic research shows that they are not going to get," said Ken Silliman, who retired earlier this year as the chair of the Gateway Economic Development Corporation, which oversees operations at Progressive Field and Rocket Arena. He advised three Cleveland mayors on sports facilities deals over 35 years, and wrote a book on the topic that was published last year.
Silliman added: “Neither theory can justify how they are able to quadruple the revenues. And if you give them a significant haircut on that projection then that that service on the bonds no longer looks as rosy.
Silliman said he’d advise lawmakers not to reject DeWine’s proposed sports facilities fund. But he’d said he'd suggest lowering the tax to 30% and reducing the total amount the state can give the project. Republican leaders have said that sports facilities fund and the tax increase that comes with it are unlikely to be included in the budget.
Republican lawmakers have also suggested they’re interested in an income tax cut or a flat income tax in this budget. And the leading Republican candidates for governor, Vivek Ramaswamy and Dave Yost, have both said they support moving to zero state income tax. It’s unclear how that could affect the revenue projections.
Silliman notes another item in the proposed draft amendment—the state retaining an interest in the stadium.
"It's fairly common for cities and counties to have ownership interests in stadia," Silliman said. "I'm really not aware of a situation where a state has an ownership interest. I'm curious why that provision is in there."
A trio of Ohio House Democrats wrote to Republican leaders last week, saying they have "significant, unresolved fiscal questions" about the bond package proposal. House Assistant Minority Leader Dontavius Jarrells (D-Columbus) and Reps. Terrence Upchurch (D-Cleveland) and Dani Isaacsohn (D-Cincinnati) asked for more hearings to invite state officials and the consultants who prepared the financial analysis to share testimony and answer questions, and for the Legislative Service Commission to provide a formal fiscal review.
Majority House Republicans are set to unveil their budget on Tuesday. House Finance Chair Brian Stewart (R-Ashville) has said decisions are continuing to be made on what's in the budget and what's out.
