Despite concerns from Gov. Mike DeWine, national economists and other lawmakers, Ohio House Republicans are moving ahead with plans to give $600 million in taxpayer funds to the Cleveland Browns for a new stadium.
This is in addition to the Browns’ request for $600 million from local taxpayers. The total $1.2 billion in taxpayer funds is expected to be matched by $1.2 billion in Browns funds for the $2.4 billion project that will relocate the Browns from downtown Cleveland to the suburb of Brook Park.
The recently released House Budget plan included a $600 million bond issue for the stadium, which Rep. Brian Stewart, R-Ashville, compared to similar community bond issues for splash pads but on a larger scale.
Stewart also stated that the Browns have committed escrow funds, which they expect will grow over time, to help cover taxpayer expenses.
“This is, in many ways, similar to a loan,” Stewart said at a recent news conference. “I believe the team has provided very reasonable metrics for the type of economic activity that will be associated with this project. We believe that economic activity will effectively repay the amount of those bonds.”
J.C. Bradbury, a professor at Kennesaw State University and expert on publicly funded stadiums across the country, disagrees.
According to Bradbury, who has conducted extensive research on stadium financing deals, new tax revenue rarely occurs after projects are completed. Instead, the agreements replace one set of tax revenues with another.
Bradbury’s research has shown that the overall tax base does not increase.
“It’s just your typical loser of a financial plan that claims to bring big economic benefits at no cost to taxpayers, when neither of those things are true,” according to Bradbury.
“The Browns have a history of losing, and this plan continues that tradition. The fabulously wealthy Haslams should be embarrassed that they expect Ohio taxpayers to give them a handout.
DeWine proposes raising the gambling tax from 20% to 40% to help fund professional sports stadiums and youth sports.
He stated that the state would receive an additional $130 million to $180 million per year for professional and minor league sports facilities. A new commission would decide which projects to fund, with a 40% cap on total costs.
Also, Democratic state lawmakers said last week that they wanted the stadium plan put on hold, demanding more transparency, hearings, and accountability before any deal is finalized.
They claim the proposed financing plan would cost Ohio taxpayers more than $1 billion over the next 30 years.
Stewart describes the project as a once-in-a-lifetime opportunity to establish an entertainment facility in the state.
“I’ve spent my entire life hearing some people say there is nothing to do in Ohio,” Stewart told the crowd. “Why don’t we have the elite entertainment options that other states do?
This is the opportunity. When the ribbon is cut, Ohioans will be proud because this will be America’s premier entertainment facility.
