County plays ball: Rays stadium plans receive final approval

In January 2023, Mayor Ken Welch compared a proposed partnership between St. Petersburg and the Tampa Bay Rays to an engagement. He also hoped Pinellas County Commissioners would help “pay for the wedding.”

Stakeholders who favored plans to subsidize a new $1.37 billion ballpark were throwing metaphorical rice Tuesday evening.

Commissioners approved allocating $312.5 million in tourist development taxes to replace Tropicana Field with a state-of-the-art stadium in a 5-2 vote. It will feature extensive, retractable glass paneling, 30,000 fixed seats and host non-baseball events year-round.

The ballpark will anchor the historic Gas Plant District’s $6.7 billion redevelopment, a 30-year construction project that will transform sprawling parking lots into a tax-generating mixed-use community. Commissioner Janet Long called the vote a “transformational, once-in-a-lifetime opportunity” that would benefit future generations.

“This is so much more than a baseball stadium,” Long said. “It is poised to become – if we do it right – a world-class tourist destination and the largest economic opportunity for the entire Tampa Bay region … in fact, probably the State of Florida.”

From left: Pinellas County Commissioner Janet Long, St. Petersburg City Councilmember Brandi Gabbard and Mayor Ken Welch at the Sept. 19, 2023, announcement that the Tampa Bay Rays were “here to stay.” Photo by Mark Parker.

The St. Petersburg City Council voted 5-3 July 18 to sell to the team and its development partner, Hines, 65 acres of prime real estate at a steep discount. The city will also provide $287.5 million to offset stadium construction costs and $130 million for infrastructure improvements.

The county’s decision was more straightforward. Pinellas generates tourist development, or bed taxes, from a 6% surcharge on overnight stays. Commissioners must dedicate the funding to capital projects that increase visitation.

The Rays will contribute over $700 million to the project and cover inevitable cost overruns. County Administrator Barry Burton noted the team, rather than the city, would now pay $250 million to insure the ballpark for the next 30 years.

The county will own the stadium site and receive $1 million annually from the Rays for 25 years. The team must dedicate $50 million to affordable and workforce housing, small-business assistance, multiple inclusive job creation and educational initiatives, and a new Woodson African American Museum of Florida.

Commissioner Brian Scott said the vote was probably the most consequential decision he will ever make on the dais. “I don’t like every aspect of this deal,” he said.

However, he noted that the Rays and Hines also face significant risks. Scott also believes the “only scenario where the county doesn’t positively get a return on investment is if we financed 100% of the $312.5 million for 30 years and didn’t pay any of it.”

He said the financial outlook “gets better and better” with the commission’s upfront contribution. Scott expects the county to see a 15% return, “and that’s just on the most conservative aspect.”

Independent reports state the project’s economic impact will top $465 million annually and exponentially increase once construction concludes. It will also provide over 15,000 jobs, $1 billion in new property taxes, much-needed Class A office space, 1,250 on and off-site affordable and workforce housing units, a conference center, a hotel, an amphitheater and 14 acres of green space.

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

Residents evenly spoke for and against the proposal during the public forum. Many who opposed the deal said their tax dollars could go to better uses, like housing, grocery stores and infrastructure.

Commissioner Renee Flowers, a Gas Plant descendant, stressed that bed tax dollars can only fund tourism-focused projects. She also noted that visitors will primarily foot the county’s contribution.

Welch also grew up in the Gas Plant before city officials razed hundreds of homes, businesses and churches in the name of urban renewal. Flowers noted they were the only two in the room whose families “lost anything.”

“This could make a true difference in the meaningful lives of people who reside in South St. Petersburg,” she added. “This is the way to fulfill the promises to the African American community.”

The county’s ability to help subsidize a new Major League Baseball stadium while ensuring it has enough money to renourish eroded beaches was a significant concern. Burton began the discussion with an “ultra-conservative” study that showed commissioners can self-fund those and other capital projects and keep $130 million in “extra reserves.”

Commissioner Dave Eggers bemoaned the city’s $105 million land sale price when it last appraised for $280 million. He proposed a 30-day “pause” for a new valuation and additional concessions from the Rays.

James Corbett, city development administrator, dismissed his request. He also reiterated that St. Petersburg’s land use and economic opportunity requirements decrease the property value, and selling it to the highest bidder would likely create an influx of luxury condominiums.

Chair Kathleen Peters and Commissioners Charlie Justice, Flowers, Long, and Scott approved the generational project. Commissioners Chris Latvala and Eggers dissented. The Rays plan to break ground on the stadium early next year and open it in time for the 2028 season.

“This is a huge deal for Pinellas County,” Justice said. “It’s a huge deal for St. Pete, and it’s a huge deal for Tampa Bay.”