http://www.nbcnews.com/id/12738644/ns/world_news-world_environment/t/wild-find-half-grizzly-half-polar-bear/#.V0CDj032bDA
Earlier in that same season, one of our guides and clients spotted a suspected polar/grizz cross but it went to water and escaped. This bear was killed 4 years later by the same guide near Minto Inlet on Victoria Island.
http://www.fieldandstream.com/photos/gallery/hunting/2010/06/how-inuit-hunter-david-kuptana-shot-only-second-generation-polar-bear
Yes the Brown & the Polar are related. I believe that the Shiras Brown Bear (ABC Islands Ak) have Polar Bear DNA. So they either have a common ancestor or have cross bread sometime in the past.
With the Global Warming it's probably going to happen more often as Polar Bear go ashore more often.