State Officials Question Haslam Group’s $3.6B Brook Park Stadium Plan

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Two memos dropped today from two branches of state government, both urging caution when considering the Haslam Sports Group’s (HSG) economic impact projections from its proposed enclosed stadium and supportive development in suburban Brook Park. But HSG shot back, calling the reports “questionable” and “inaccurate.”

A memo from Gov. Mike DeWine’s Office of Budget and Management (OBM) Director Kimberly Murnieks derided the requested $600 million in state bond funding for HSG’s proposed $3.6 billion sports and entertainment complex as “risky.” HSG responded more gently to DeWine’s assessment than it did to another by the Legislative Service Commission (LSC) that called the stadium-development revenue estimates as “overly optimistic.”

“The OBM and LSC memos outlined various questions which we have previously addressed with Governor DeWine and other state officials directly,” said an HSG spokesperson in a text message to NEOtrans.

“We question many of the memos’ assertions and have worked with our team of national experts to prepare relevant information and responses to the points in the OBM materials, which we have provided to the (DeWine) Administration,” the text continued. “The LSC memo also contained several inaccuracies and misinformation.”

HSG owns the Cleveland Browns National Football League (NFL) franchise that would move its home games from a city-owned, 1999-built, open-air stadium on Downtown Cleveland’s lakefront to a new, enclosed stadium in Brook Park. The Browns’ 30-year lease with the city of Cleveland is due to expire after the 2028 football season.

Construction of the Brook Park enclosed stadium would have to get underway next year so it opens in time for the 2029 football season. The new stadium is touted by HSG as the centerpiece of a sports-entertainment district, and that it would offer the “Furthest east dome in the United States” and host large events that could draw visitors from the East Coast.

But a key piece of information affecting HSG’s plans has been overlooked today in all of this state government-based news. Earlier today, the Washington Commanders NFL franchise announced a partnership with the mayor of Washington DC to build a $4 billion domed stadium on the site of Robert F. Kennedy Memorial Stadium, now being demolished.

Until today, it was not certain if the proposed Washington DC stadium would have a roof. The Haslam spokesperson had no comment on that deal or its potential impact on future visitor estimates and tax revenues to the proposed Brook Park stadium.

HSG is working with state lawmakers to pass legislation by the start of the state’s next fiscal year July 1 that would capture a variety of tax revenues generated by activities within a proposed stadium-development district in Brook Park. Those tax revenues would service bond issues from the state and local governments to pay for the other half of the stadium bill.

“I don’t think we can afford to continue to go into the general fund of our budget and take this money,” DeWine told the Ohio Capital Journal one month ago. “This (stadium) money directly competes against education. It directly competes against mental health, drug addiction, all these things that we actually need money to try to help people achieve their ultimate goals.”

The basis for DeWine’s statement became clearer today. A memo written by DeWine’s OBM director a month ago had much of the same language in it as DeWine’s quote, but wasn’t released publicly until now.

Because there are other Ohio capital projects waiting on state funding — including Dayton’s mental health hospital, Department of Youth Services facilities, prisons, state parks and the H2Ohio program — the state “Does not have the capacity to accommodate these priorities plus $600 million in bonds for a single sports facility,” Murnieks wrote in a March 26 memo released today by the Statehouse News Bureau.

DeWine’s proposed a location-agnostic stadium funding plan that could benefit a wide variety of sports facilities and programs from toddlers to the pros, regardless of sport, funded by doubling taxes on online sports betting. But that wouldn’t provide enough state funding upfront for the $2.4 billion enclosed stadium for which HSG has pledged to pay half of the tab. Lawmakers said they are loathe to raise any new taxes.

“We understand and welcome Governor DeWine’s commitment to creating a responsible funding mechanism for sports facilities across Ohio, as he has consistently communicated the positive impact Ohio’s teams, and their venues have on the state,” the HSG text continued. “We look forward to more ongoing, collaborative dialogue with the Governor and other state officials to create the best solution to bring our transformative project to the state and Northeast Ohio.”

The LSC memo said the Legislative Budget Office reviewed data including an economic impact analysis of the proposed domed stadium and mixed-use development in Brook Park that was conducted by consulting firm Robert Charles Lesser & Co. (RCLC) on behalf of HSG. But LSC said it lacked access to RCLC’s source materials and methodology, so it was unable to verify all of RCLC’s claims

“The overwhelming conclusion from this body of research is that there are little to no tangible impacts of sports teams and facilities on local economic activity,” the LSC memo stated. “A second conclusion is that the level of government subsidies given for the construction of facilities far exceeds any observed economic benefits when they do exist.”

Despite the LSC memo, it appears HSG has the votes in the Ohio General Assembly to pass its proposed stadium funding package. But if DeWine should line-item veto the stadium funding, the legislature may not have enough votes to override it. DeWine has given no indication of what he would do if the legislature passes the stadium funding.

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