Berea OKs temporary property lease enabling Browns to seek redevelopment tax credits

BEREA, Ohio – Berea City Council unanimously approved an ordinance on Sept. 16 authorizing Mayor Cyril Kleem to execute a temporary lease agreement for city-owned property the Haslam Sports Group's Berea Mixed Use Project LLC has identified for future redevelopment near the Cleveland Browns training facility.

The legislation enables Haslam Sports Group to apply for tax credits through the Ohio Department of Development's Transformational Mixed-Use Development (TMUD) Program.

"In order to be eligible to apply for such tax credits, we must own or have a leasehold interest in the property that the project is to be located on," Haslam Sports Group Chief Operating Officer David Jenkins wrote in a Sept. 12 letter to Council President Jim Maxwell.

"We will continue to work with the city to finalize the terms of the purchase of the city-owned property, but in order to meet the Oct. 4 deadline for the TMUD Program application, the lease agreement must be executed prior to such deadline."

A cluster of seven vacant parcels primarily fronts Lou Groza Boulevard, with another parcel located on Second Avenue and an additional small strip of land situated on Pearl Street. The properties are part of the city's land bank.

According to the ordinance, City Council members will have "sufficient time to review and consider approval of a purchase agreement" for the properties if Berea Mixed Use Project LLC ultimately decides to pursue the $175 million to $225 million project.

Kleem emphasized the Browns have not finalized a project plan. It could include, among other amenities, a hotel (primarily for Browns' use), medical facility, community-oriented football field and possibly some mixed retail with connected living space.

"The financial considerations the city will receive ... out of this project, as it stands today, is going to be in the millions of dollars," he said.

"This is significant, and it would be important to us for this development to go forward."