There’s been another setback for the state’s plan to create a fund for sports facilities renovations using some of the $4.8 billion in unclaimed funds Ohio is holding. For the second time, a ruling from Franklin County has ordered a halt to the transfer of a billion dollars in unclaimed funds.
Magistrate Jennifer Hunt granted the injunction, saying in her ruling that the two Democratic former lawmakers who filed the lawsuit over the transfer of the unclaimed funds to a sports and cultural facilities fund have a substantial likelihood of prevailing on their claims. She also noted in the ruling that the taking of the unclaimed funds must be for public use, and state law requires the Brook Park facility to be publicly owned and occupied.
"Neither the State nor the new community organization will own, let alone occupy, retail, office, hotel, and residential buildings in the Brook Park Project. As such, the undersigned finds that the taking here is not for 'public use'," she wrote.
The ruling means there won’t be a transfer until the case filed by former attorney general Marc Dann and former state representative Jeffrey Crossman is resolved. A federal court case continues as well.
"It was clearly an unconstitutional taking. And if they want to fund the stadium, there are ways to do it constitutionally," said Dann in an interview. "I'm a Browns fan. I certainly don't want to see anything happen to Cleveland sports teams. But there's a way to do it and it requires courage and leadership."
The state can appeal the decision, and Dann said he expects that.
The budget created a Sports and Cultural Facilities Performance Fund with the unclaimed funds transfer. $600 million of it was earmarked for the Cleveland Browns’ domed stadium project in Brook Park, with 14 other Ohio sports operations applying for a share of $400 million. There were initially 22 sports operations that applied for grants, which the budget stated would pay up to 25% of the project cost of the construction or renovation of Ohio sports facilities. Earlier this month, eight of those were deemed not eligible, including a youth sports organization from Springfield, MA.
The state’s Office of Budget and Management said those applications won’t be scored until there’s money in the fund.
