The move of at least $1.7 billion in unclaimed funds held by the state to a fund for sports facilities is still halted at the order of a Franklin County judge, while the case goes on in federal and county court. That includes a provision in the state budget allocating $600 million for the Cleveland Browns’ domed stadium project in Brook Park. But the case is far from over.
In a preliminary injunction hearing, Franklin County Magistrate Jennifer Hunt ordered a temporary stop of the transfer until there can be a ruling in the case.
Democratic former attorney general Marc Dann filed the lawsuit, saying the Ohio Constitution bans this use of unclaimed funds.
"The state has defended this case extremely aggressively. So my expectation is if we're successful that the state will appeal," Dann said in an interview. "I can guarantee you that if the Franklin County Common Police Court doesn't issue an order enjoining this behavior going forward of taking people's money without compensating them or giving them the right to a hearing and then giving it to a billionaire, we're going to appeal it to the Tenth District and then to the Ohio Supreme Court. So my expectation is that whatever the outcome that this case will continue on appeal for probably for several years."
Dann also filed a lawsuit arguing the use of unclaimed funds violates the US Constitution. In an opposite ruling in that case, a federal judge declined to block the transfer but also rejected the state’s request that he dismiss the case.
The state had planned to transfer between $1.7 billion and $1.9 billion to the Ohio Cultural and Sports Facility Performance Grant Fund, with $600 million earmarked for the Browns stadium project. Other sports facilities could also get grants from the fund. The budget correction bill that passed in November removes the authority of the Office of Budget and Management to award grants to cultural facilities, but requires state lawmakers to appropriate those funds.
While it's not part of his case, Dann said if his side wins, the state would have to consider other options that have always been available, such as an early proposal from Gov. Mike DeWine to double the tax on sports gambling operators.
“There were lots of ways the state could fund the Browns' stadium. It just can't be with money they're extracting from people without compensating them or giving them a chance to be heard," Dann said.
The $600 million in unclaimed funds is the state's contribution to the Browns' stadium development project, which also includes $300 million from Brook Park. The rest of the $2.4 billion for the project, which plans to include housing and retail, is to be paid by Browns owners Jimmy and Dee Haslam. The Haslams have settled a lawsuit with Cleveland for $100 million, and the city is proceeding with a new development plan for the lakefront. The current stadium is set to be demolished in 2029, the year the new stadium is set to open.
