The details are coming in, but here are the high level bullet points based on what I heard during the press conference. I’ve tried my very best to get these as accurate as possible. It’s difficult with dollar amounts flying around, but here they are.
- The Cleveland Browns are fronting the money for the stadium improvements.
- The city of Cleveland will pay $2 million per year over the next 15 years. Mayor Jackson stated that this is in essence $22 million due to the time value of money.
- The city will look to pass a renewal of the sin tax (as was expected.)
- Mayor Jackson claims that the $2 million per season will not affect the current levels of service the city is providing.
- The city has $24 million sitting in a capital fund today as a result of the sin tax earmarked for repairs
- The city will use $12 million of the $24 million after the second year of Browns spending to further maintain the stadium via capital repairs. These improvements are unknown other than the dollar amount today.
So there you have it. Right now, the city is going to contribute $42 million if you use really elementary calculations and something less than that if you used more nuanced financial calculations. Assuming the Mayor’s calculations are correct, the value of the 15-year contribution is $22 million and then sometime in 2016 (I think) the city will give $12 million.
We’ll keep you updated as more details come out.