City of Cleveland and Browns owners reach $100 million settlement, paving way for new stadium

That venue opened in 1999 as Cleveland Browns Stadium. It replaced Cleveland Municipal Stadium, which was in operation from 1931 until its demolition in 1996.

The Haslam Sports Group — the company founded by Browns owners Dee and Jimmy Haslam, their daughter and son-in-law — has agreed to pay the city $25 million by Dec. 1 and to raze the current stadium to a “pad ready state.” The cost of the demolition is estimated to be $30 million.

The Haslams will also pay Cleveland $5 million annually from 2029 through 2033 as well as $2 million per year from 2029 through 2038 for community benefit projects.

The deal still must be approved by Cleveland's City Council.

“This $100M investment continues our lakefront momentum and economic resurgence,” Bibb said in a statement. “This agreement puts the lakefront on the path to transformational development and the Browns on the path to a world-class facility in Brook Park. This is the right solution for the city and the region. Cleveland’s time is now. We are a city that leads the region, that’s open for business, and that knows how to get big things done.”

Both parties will also work together on transportation infrastructure to prevent traffic logjams at the new site. The city and the Haslams will also collaborate on a new road network designed to serve both the Brook Park stadium and the airport.

Both parties have also agreed to drop their lawsuits. The Browns sued the city and the state of Ohio in federal court last year, alleging the state's “Modell law” was unconstitutional. The law — enacted after Art Modell moved the original Browns to Baltimore in 1996 — requires franchises that play in taxpayer-funded facilities to give the city or local investors the opportunity to purchase the team before relocating.

The city filed a lawsuit in Cuyahoga County Common Pleas Court, arguing that the Browns violated their lease and that the Modell law still applied due to nearly $500 million in renovations. The city also appealed the Ohio Department of Transportation's approval of the proposed new stadium's height of 221 feet.

ODOT decided to waive the height limit, which is 150 feet above the airport’s ground elevation, after an independent consultant determined that construction of the stadium would not change any flight paths. The building will have marking and lighting required by the Federal Aviation Administration.

“Because of Mayor Bibb’s leadership, and this monumental public-private partnership, we are accelerating the transformation of Cleveland’s lakefront while delivering a new world-class stadium and mixed-use development in Brook Park. It’s a win for the city, the region, and the fans,” Dee and Jimmy Haslam said in a statement. “We will always be the Cleveland Browns, and this agreement reflects a continued commitment by the Haslam/Johnson family to strategically invest in City of Cleveland community programs, building on the family’s consistent charitable giving across the region since taking leadership of the Cleveland Browns in 2013.

The new stadium would be built on the former site of a Ford Motor Co. plant. It would sit 80 feet below ground and 221 feet above ground.

The Browns are paying $1.2 billion for construction and will receive $600 million from the state. The team is hoping to fill the remaining financing gap after discussions with Brook Park officials.

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