County commission warms up for Rays stadium vote

Pinellas County Commissioners are now up to bat regarding plans to replace Tropicana Field with a new $1.37 billion ballpark for the Tampa Bay Rays.

The commission held its second and final workshop on the generational project Thursday. It came a week after St. Petersburg City Council members approved a $6.7 billion proposal to anchor a vastly reimagined Historic Gas Plant District with a new stadium.

The discussion was more straightforward and less time-consuming than the council’s meetings. That is due to the county’s financing structure and primary focus on the ballpark rather than the surrounding 65-acre redevelopment.

Administrator Barry Burton noted the site currently consists of an aging stadium and sprawling parking lots. Four of seven commissioners must decide that the “largest economic development project ever built in Pinellas County” deserves $312.5 million from tourist development tax coffers.

“We want to keep the Rays – we’ve got generations that have grown up with them,” Burton said. “But this is far different than just a baseball stadium. It’s about so much more than that … this becomes another destination that compliments all the attractions we have here in Pinellas County.”

Pinellas County Administrator Barry Burton (left) and David Abrams, lead consultant for Inner Circle Sports, at Thursday’s meeting. Screengrab.

Despite some remaining questions, commissioners will likely vote on their contribution July 30. The city will provide $287.5 million to offset stadium construction costs and $130 million for infrastructure improvements.

The county will own the stadium site and lease it to the city, which will then license it to the Rays. The team will pay $1 million annually for 25 years.

The Rays and Hines development team will contribute over $700 million to the project and cover inevitable cost overruns. In addition, they must dedicate $50 million to affordable and workforce housing, small-business assistance, inclusive hiring, job creation and educational programs, and a new Woodson African American Museum of Florida.

“The development will create jobs, housing, hotel and meeting space, economic growth and tourism, and honor the promises that were made to the Gas Plant community,” Mayor Ken Welch told the commission. “That I grew up in, and Commissioner (Renee) Flowers, as well.”

The project seemingly has the county’s approval. While Commissioners Dave Eggers and Chris Latvala vocalized some tepid concerns, the workshop lacked the ardent opposition found in several city meetings.

The most discussed potential hurdle was the county’s ability to help subsidize a new Major League Baseball stadium while ensuring it has enough money to renourish beaches. Eggers said he wanted “crystal clear” data showing “we’re not close” to lacking that funding, particularly after a storm.

County officials considered over 21 of the county’s 35 miles of beaches “critically eroded” before Hurricane Idalia’s storm surge decimated the coastline in August 2023. An impasse with the Army Corps of Engineers has increased the need to maintain restoration resources.

However, Burton noted that a September 2023 presentation showed Pinellas has plenty of bed tax dollars – a 6% surcharge on overnight stays – to self-fund beach projects and subsidize the stadium. At the time, administrators expected to accrue $3 billion over the next 40 years based on a “conservative” 3% growth estimate.

That war chest has likely increased as the county subsequently set new tourism records. Overnight stays provided $98 million in bed taxes throughout fiscal year 2023. Officials must dedicate 40% to projects that increase visitation.

“We’ve set aside money for fully funding our beach renourishment,” Burton said Thursday. “That is our first priority. We did that before we committed to this model.”

Commissioner Rene Flowers asked if Penny for Pinellas tax funding would subsidize the project’s 1,200 workforce and affordable housing units. That is unlikely, and the commission could deny the request. Screengrab.

Burton explained that 37% of the redevelopment would occur in the 30-year project’s first phase. He said the developers must “build this right with the stadium” to create their desired destination.

Similarly, Burton said the Rays must maintain the ballpark to enforceable standards. An independent firm will review those efforts every five years. That incentivizes the team to not “build it on the cheap.”

Burton believes communities from South St. Petersburg to Palm Harbor will benefit from its $443 million economic impact that will exponentially increase once construction concludes. Officials expect the project to provide $1.46 billion in new local property taxes through the first 30 years.

Commissioner Brian Scott said many constituents bemoan subsidizing “rich sports teams,” and “fundamentally, I agree with that.” However, he noted the reality “is a heck of a lot more complicated.”

Scott called it a “real challenge” to explain that limited-use bed tax dollars would create additional general fund revenue. Burton agreed but said it allows commissioners to “do what you’re doing this year, which is to roll back that property tax rate.”

Eggers opposed the city using Intown Community Redevelopment Area (CRA) funding to offset construction costs. “It going for infrastructure on this project is fine with me,” he said.

“I’m concerned about the stadium piece,” Eggers added. “I’m also concerned about leftover money going to paying off debt for the team.” Burton noted that property within the CRA would generate roughly $8 million annually in county property tax revenue once it sunsets in 2032.

Eggers also questioned why the city would sell land valued at $280 million to the Rays for just $105 million. Welch said the team offered more than any previous proposal.

He also reiterated the importance of fulfilling long-deferred promises of economic opportunity and inclusion at the site. “It was never my focus going in to sell the land for the highest price,” Welch said. “It would be luxury condos.”

Burton said he could provide an update on beach renourishment funding within 24 to 48 hours. Commissioners will discuss that and other minor, unresolved issues before voting Tuesday.

Administrator Barry Burton noted that the developers would complete everything pictured in this rendering through the project’s first phase. Image provided.