Ohio proposes $600M bond for new Browns stadium

Ohio lawmakers are working on a budget plan that could allow for $600 million in state bonds to help finance a new stadium for the Cleveland Browns. This proposal aims to change existing laws that restrict state funding for sports facilities. The funding would cover part of the estimated $2.4 billion cost for the new stadium planned near Cleveland Hopkins International Airport. The Browns mentioned that the bonds would be paid back using tax revenue generated from the stadium and a proposed $1 billion development around the area. Currently, Ohio law limits state funding to 15% of a project's cost. The new proposal would change that limit to 30% for significant sports facilities that include mixed-use developments. The bonds would have a minimum maturity of 25 years, with the Browns planning for a 30-year term. Experts have raised concerns about whether the projected revenue from the stadium and its vicinity will be sufficient to repay the bonds. To address this, the team has offered $38.25 million in initial cash to prevent shortfalls. The Ohio Facilities Construction Commission must determine that the new tax revenues exceed the bond repayment costs for the project to move forward. Additionally, future stadium projects could require teams to set aside funds to cover any revenue deficits. While this budget amendment is gaining attention, Governor Mike DeWine proposed a different funding approach that involves doubling the tax on gambling companies. However, House Republicans seem inclined to back the Browns' bond plan instead due to hesitations about raising taxes. The House Finance Committee will review these proposals soon.