ReportWire

Tag: Ken Silliman

  • Who Will Pay for Capital Repairs at New Brook Park Browns Dome? It’s Entirely Unclear – Cleveland Scene

    [ad_1]

    The Haslams will soon build a $2.4 billion dome in Brook Park. And while the funding for that project is pretty much locked up—with the generous help of $600 million from the state of Ohio—one looming, lingering question is how exactly repairs will be paid for in the future.

    It’s a question of timely importance. One need only look to the current situations at Rocket Arena and Progressive Field to pull the distant future into the present.

    The Gateway Economic Development Corporation of Greater Cleveland, the nonprofit that owns and operates both facilities, recently shared that it expects $150 million in capital repairs at the arena and stadium in the next few years, and another $261 million in capital repairs through the end of the current leases. (2034 for Rocket Arena and 2036 for Progressive Field, respectively.)

    But Gateway doesn’t have the money—not nearly enough. It’s already had to get creative to cover past bills, including landing bailouts from Cuyahoga County and Cleveland. The current sin tax revenue, the mechanism by which it has in the past funded all repairs, pales in comparison to the growing list of bills. And all sides admit there are no firm plans for future revenue streams.

    Down on the lakefront, Cleveland Cleveland City Council in July approved $2.7 million for capital repairs on Huntington Bank Field, which the city owns and operates. That brings the total Cleveland has spent on repairs to the stadium in the last 11 years to $30.7 million.

    The Brook Park dome is an entirely different beast. First of all, it would be owned, in theory, by a new community authority formed by the suburb with authorization from the state of Ohio. But that authority wouldn’t have recourse to collect or levy any taxes or fees outside of the footprint of the project.

    There simply exists no structure to pay for repairs going forward as it stands, which has local stadium financing expert Ken Silliman worried.

    “In my opinion, for Brook Park to not have tied down the responsibilities long term for routine maintenance and capital repairs at this late of a stage is a major problem,” he told Scene.

    Silliman, the author of Cleveland Sports Facilities: A 35-Year History, spent years at City Hall negotiating deals with team owners, including the infamous tug-of-war around Art Modell moving the Browns to Baltimore in the mid-1990s.

    “In my view, [we’re] at the team’s mercy as far as who’s going to pay for routine maintenance, who’s going to pay for capital repairs,” Silliman said.

    It is part of the current talks between Brook Park and the Haslams, though.

    “Mayor Orcutt and the City of Brook Park are in regular communication with the Cleveland Browns regarding all aspects of stadium planning, including long-term maintenance and management considerations,” Paul Marnecheck, Brook Park’s Commissioner of Economic Development, told Scene. “The question of capital repairs is a key component of the broader negotiations currently underway.”

    “No final agreements have been reached at this time,” he added. “The Mayor remains focused on ensuring any arrangement is fiscally responsible and in the best interest of Brook Park residents.”

    In Brook Park, the Haslams are intent on having the suburb create a new community authority, which would require state authorization, to own and operate the stadium. But that authority would have no legal mechanism to collect taxes or revenue outside of its footprint, or perhaps through taxes levied by Brook Park.

    The Haslams, meanwhile, have expressed a desire to double or triple the county sin tax. But that proposal has its own litany of problems. While the state recently approved legislation allowing Cuyahoga County to go back to voters to seek a doubling of the tax rate, Executive Chris Ronayne has said he will not pursue that both because it would still not be enough to cover the capital repair bills at Progressive Field and Rocket Arena and because polling shows voters are unlikely to approve a new sin tax bump if part of the money is diverted to the Brook Park dome. Both the Cavs and Guardians have expressed similar concerns about the Browns being included in future sin tax referendums.

    “There’s substantial doubt whether a measure submitted to the voters that includes the Brook Park stadium as an eligible recipient would pass given that hesitancy about move,” Silliman said.

    Spokespersons for the Browns and Cuyahoga County either did not respond to a request for comment or declined to comment.

    Stadium authorities are seen today as the new golden model. It’s one the Browns are pursuing.

    The Raiders’ Allegiant Stadium is owned by the Las Vegas Stadium Authority, which collects Clark County hotel tax dollars to fund maintenance and reapirs. In other words, Nevada owns Allegiant; Nevada’s tourists pay to keep the Raiders happy.

    A similar model around Paycor Stadium—the Banks New Community Authority—uses a one-percent amenity tax collected on dollars spent in the district to pay for events and promotions.

    In theory, a Brook Park Stadium Authority could do the same, with an okay from state legislators. Which would mean the financial responsibility would fall on anyone who visits the dome or surrounding development, paying more in parking, beverages, food and tickets.

    Or, Brook Park could be on the hook, at least partially.

    “Unless and until they get those terms tied down,” Silliman said, “the responsibility would presumably fall on Brook Park.”

    Subscribe to Cleveland Scene newsletters.

    Follow us: Google News | NewsBreak | Reddit | Instagram | Facebook Twitter

    [ad_2]

    Mark Oprea

    Source link

  • At Recent Panel, Sports Stadium Financing Experts Warn Against Massive Public Subsidies for Cleveland Browns

    At Recent Panel, Sports Stadium Financing Experts Warn Against Massive Public Subsidies for Cleveland Browns

    [ad_1]

    click to enlarge

    Mark Oprea

    Ward 16 Councilman Brian Kazy (far right) fixed together a panel of stadium politics experts—Ken Silliman, Victor Matheson and Brad Humphreys.

    If you were to pick out any average Browns fan or Northeast Ohioan off the street, you’d probably get a mixed bag of answers to what’s become an increasingly controversial question: What should come of Cleveland Browns Stadium?

    Let the Haslams relocate to Brook Park with a $2-billion dome (with half coming from the taxpayers of Ohio, Cuyahoga County and other sources). Focus on renovating the current one to the tune of $1 billion (again, with the Haslams asking for half the tab to be picked up by the public). Forego costly renovations and instead do the best we can with the current stadium?

    Last Thursday afternoon at the Cleveland Public Library a panel of experts on stadium builds and sports politics gathered for two hours to discuss the hard facts and real-world implications of those possibilities.

    The panel—comprised of Ward 16 Councilman Brian Kazy, former Law Director Ken Silliman, and stadium economics experts Brad Humphreys and Victor Matheson— offered lots of opinions and facts but one seemed to come with agreement: That erecting a $2.4 billion Brook Park dome and surrounding village, saying goodbye to the lakefront, would not carry the perks to Clevelanders some have been touting.

    Namely, Cleveland plus Domed Stadium equals Wealthier City.

    “There’s zero evidence in 30 years of peer-reviewed academic research that a professional sports team in a city generates any substantial jobs, raises wages, raises income, raises property taxes,” Humphreys, an economics professors at the University of Alberta, said.

    “What professional sports are good at,” he added, “is moving economic activity around to different parts of the city.”

    With Browns owners Jimmy and Dee Haslam’s stadium lease with the city to end in 2028, time is closing in on a decision that’s divided Clevelanders, just as it seemed to divide attendees at Thursday’s panel: Ask for public dollars to bankroll a projected $1.2 billion upgrade of Cleveland Browns Stadium where it is, or use (more) public dollars to construct a $2.4 billion football neighborhood 14 miles south in Brook Park, across from the airport and where the old Ford plant once stood.

    The Haslams have been vague on their intentions after it was announced, in April, they secured the rights to buy 176 acres of land east of I-71 big enough for a ballpark village to stand. The move, seen by Thursday’s panelists as a chess ploy, has nevertheless prodded local politicians, from Mayor Justin Bibb to Councilman Kazy, to ensure that Cleveland doesn’t lose—with some PTSD—the Browns to a southwest suburb. (Bibb has said his preference is for the Browns to stay downtown, and has argued the city has put forth what, is in their opinion, a good deal for the city and the team).)

    It’s what seemed to beckon Kazy, who was the face of Council’s emphasis of the 1996 Art Modell Law that attempts to protect cities from billionaires seeking to pick up their team and leave, to gather three experts on stadium deals to espouse the starry-eyed Clevelander’s wish for a shiny new domed megapalace. Like Nissan Stadium in Nashville. Or Jerry’s World in Dallas. Or Los Angeles’ behemoth that is AT&T Stadium.

    click to enlarge Matheson (right) brought hard data to back up the panel's bottom line: expensive sports facilities are bad public investments for a city in general. - Mark Oprea

    Mark Oprea

    Matheson (right) brought hard data to back up the panel’s bottom line: expensive sports facilities are bad public investments for a city in general.

    Sensing some in the crowd yearned for a Taylor Swift-level echelon of concerts, or say another Rolling Stones stopover, Matheson was quick to shut down the perception of huge change with some hard data. From 2002 to 2022, he and Humphreys found, Cleveland Browns Stadium hosted 12 concerts. Detroit’s dome hosted 38. Indianapolis’ Lucas Oil Stadium, 31. (And two Super Bowls, in 2006 and 2012.)

    The bottom line for the two visiting professors, who speak regularly against city-subsidized stadium deals, was evident: the billions of dollars that go into inviting a Swiftie World Tour doesn’t produce a sound return in investment. They quoted a Chicago economist: “It would be better to drop [money] from a helicopter than invest it in a new ballpark.”

    “So if you said, ‘Well, look. There’s so much more you can do with an indoor stadium,” Matheson said. “Well, yeah: one more concert [a year] here. You might get a men’s basketball Final Four. And a Super Bowl—but you’ll get one.”

    For Silliman, the former chair of the Gateway Economic Development Co. who recently published a 600-page memoir-slash-stadium exposé on Cleveland’s own chaotic history with sports stadiums, the more sensible route was to convince the Haslams, the city and its denizens to reframe Cleveland Browns Stadium in the historical vein of Fenway Park in Boston, or Wrigley Field in Chicago.

    Which meant, he said, doubling that dollar stream Cuyahoga County residents have been using for stadium upkeep since 1990. The tax on booze and cigarettes. The tax on concerts and shows. The tax on parking lots and car rentals.

    “You know, our sin tax has never been adjusted for inflation,” Silliman, who was an adviser to former Mayor Mike White in the 1990s, said. “If you were to double the annual amount available for each sports facility that would take it from $4.5 million per facility, to about $9 million.”

    Silliman, like Kazy himself, reminded everyone in attendance that he was first and foremost a Cleveland sports traditionalist.

    And believed that, in reality, most Clevelanders had more practical priorities than the Haslam Brook Park renderings. (Only five percent of members of the Cuyahoga County Progressive Caucus thought the public wanted to or should pay for a new stadium in the first place.)

    “If you ask the average ticket buyer at Cleveland Brown Stadium,” Silliman said, cracking a smile, “they would say, just give us a team that’s consistently competing for the playoffs.”

    Subscribe to Cleveland Scene newsletters.

    Follow us: Google News | NewsBreak | Reddit | Instagram | Facebook | Twitter

    [ad_2]

    Mark Oprea

    Source link