Crunching numbers: Who’s paying for the new Rays stadium?

The City of St. Petersburg and Tampa Bay Rays development team have clarified the terms of how they will contribute funds towards the $1.3 billion new stadium project.

According to the latest drafted agreement obtained by the St. Pete Catalyst, the city and Pinellas County will contribute a total of $600 million toward the stadium development, and the Rays will pick up the remainder of the cost – roughly $700 million, pending multiple needed approvals. 

The city’s $287.5 million contribution will be backed by Community Redevelopment Agency tax increment revenue bond issues. The bond documents will be reviewed by the St. Petersburg City Council.

The county’s $312.5 million commitment will be sourced from tourist development and Intown CRA’s tax increment revenues.

Both the county and city will provide an amendment to the interlocal agreement for the funding commitment and potential changes to the Intown Redevelopment Plan, if necessary, for the use of the funding.

Meanwhile, the Rays’ contribution would be sourced through proceeds of loan programs available to the Major League Baseball Clubs, private sources and proceeds of lending facilities, according to the drafted agreement, which will be presented this month at a Committee of the Whole Meeting. 

The overall funding by the Rays will have to “satisfy the city, the county and their advisors in accordance to the terms of the development and funding agreement.”

The Rays will be solely responsible for any design and construction defects in the 30,000-seat stadium that will feature a fixed roof. The team would also be responsible for management, operation and maintenance.

A commercial bank or similar financial institution acting as a trustee would be responsible for administering the trust and disbursing the funds.

The agreement prohibits the Rays from mortgaging or placing a lien upon any portion of the 17-acre stadium site, which the county will own a portion of, and lease to the city. 

The public-private partners expect to complete the negotiation process by the spring of 2024. Construction could commence that fall and be completed by November 2027.

The Rays will have the option to extend the 30-year use agreement term for two additional five-year periods. The Rays are restricted from selling or transferring the use agreement without city council approval. Although, under certain conditions, the Rays can transfer all of their rights to any person or entity that acquires a controlling interest. 

Rays officials plan to gather public feedback about the stadium plans at three community events.

The first will be held Oct. 9 at 7:30 p.m. in Tampa’s Westshore area. Meetings are also scheduled for Oct. 12 at 5:30 p.m. and Oct. 17 at 7:30 p.m. in downtown St. Petersburg. 

The Community Benefits Advisory Council will to review the overall development agreement in November.