Cleveland Browns taps Lincoln Property for mixed-use complex around new stadium
According to Brannon Boswell at CoStar News, "The Cleveland Browns football team has hired a firm with deep experience in sports-focused real estate development to help create a mixed-use village around its new stadium, among the latest such developments taking place across the country.
The team has tapped Lincoln Property Co. as its development partner for a 176-acre mixed-use district anchored by the team’s $2.4 billion new stadium in Brook Park, Ohio.
Lincoln’s plans call for 800,000 square feet of office and retail space, two upscale hotels and 1,100 apartments around the new stadium, to be developed by the team's owner, Haslam Sports Group. The hub aims to "engage residents and visitors alike,” said Peter Kelly, executive vice president of Lincoln Property's Midwest operations, in a statement.
The project adds to the growing number of development partnerships seizing on the trend of building new sports-anchored entertainment districts. Similar projects are taking shape in California, Nevada, Tennessee, Florida and other states. In Los Angeles, the owner of the NFL Rams is developing the 5 million-square-foot Hollywood Park mixed-use complex near SoFi Stadium, home to the Rams and the Los Angeles Chargers.
Lincoln Property, based in Dallas, has several examples of sports-related development under its belt. The firm in 2003 started a segment to build facilities for sports, motorsports and e-sports clients, with notable projects including Legacy Union, a mixed-use commercial development in downtown Charlotte adjacent to the Bank of America Stadium, home to the NFL's Carolina Panthers; and The Rock at La Cantera, a 50-acre project in Northwest San Antonio that includes a San Antonio Spurs basketball training facility.
The centerpiece of its latest development is a 67,000-seat stadium in Brook Park, about 15 miles from downtown Cleveland. The Browns are slated to vacate the 25-year-old Huntington Bank Field stadium in the city's downtown ahead of the new stadium's opening in 2029. The team is expected to play the 2029-2030 season in its new home in the suburbs.
The first phase of the mixed-use complex will include 450 hotel rooms, 575 apartments, 96,000 square feet of traditional retail and dining and 137,000 square feet of experiential retail, including a team store and other experience-based retail concepts. The company did not specify the timeline for the remaining phases.
The Browns did not provide funding plans, but said bonds will be issued to help cover the public portion of the project’s cost.
Stadiums across the country are adding more bells and whistles to boost ticket and food-and-beverage sales. The Rose Bowl in Los Angeles recently announced plans to spend $80 million on upgrades, while stadium owner and operator Live Nation is adding more VIP sections and food-and-beverage options to its properties across the globe.
For the record
Haslam Sports Group owns the Cleveland Browns and will develop the stadium, while Lincoln Property Co. is developing the mixed-use components around the sports facility. Both groups will work with design architect HKS."
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The Cleveland Browns' ambitious development of a $2.4 billion mixed-use district around their new stadium in Brook Park, Ohio, is likely to have significant implications for property taxes in the area. Projects of this scale often create a ripple effect on local economies and property values, which in turn affects taxation.
Potential Increases in Property Values
The introduction of upscale residential, retail, and commercial spaces, as well as two luxury hotels, could drive up property values in Brook Park and surrounding areas. The increased desirability of living and working near the new stadium and entertainment district might lead to higher assessments for neighboring properties, boosting property tax revenue.
Public Financing and Tax Burdens
The Browns plan to issue bonds to fund the public portion of the project’s cost. While bonds are a common financing mechanism, they are often repaid through tax revenues, which could place a long-term burden on local taxpayers. If the development does not generate sufficient revenue through increased sales taxes, tourism, and business growth, the shortfall might necessitate higher property tax rates.
Economic Development and Offsetting Revenue
On the positive side, the mixed-use development is designed to attract residents, businesses, and visitors, potentially offsetting some of the tax burdens. New retail, dining, and experiential spaces could generate significant sales and use tax revenue. Additionally, the creation of jobs—both during construction and in the long-term operation of the district—could stimulate the local economy.
Challenges for Longtime Residents
For current Brook Park residents, higher property values might be a double-edged sword. While increased equity is beneficial for homeowners, it could lead to unaffordable property tax increases for those on fixed incomes or with limited resources. Communities may need to consider measures like property tax relief or caps for longtime residents to mitigate these impacts.
Comparison to Other Developments
Similar sports-anchored projects, such as those near SoFi Stadium in Los Angeles or Bank of America Stadium in Charlotte, have led to notable increases in local property taxes due to rising land values. However, they have also spurred economic revitalization, making the areas more vibrant and prosperous.
Conclusion
The new Browns stadium and mixed-use district could significantly alter the property tax landscape in Brook Park. While it has the potential to enhance the local economy and infrastructure, the project also raises questions about equitable tax burdens and long-term financial planning for the community. Local policymakers and residents will need to weigh these factors carefully as development progresses.