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Pinellas County and the Rays have a stadium standoff
Pinellas County commissioners delayed a critical vote Tuesday night just hours after the Tampa Bay Rays sent a somber letter stating the Commission’s previous inaction has jeopardized a generational project.
Commissioner Brian Scott believes the team “might be looking for a way out” of an arduous and, apparently, tenuous agreement approved under a different board in July. The letter, penned by team presidents Brian Auld and Matt Silverman, said the commission’s Oct. 29 decision to postpone approving a bond issuance negated plans to open a new ballpark for the 2028 season – and the Rays could not afford additional associated costs “alone.”
The commission voted 6-1 to postpone the bond vote again, this time until Dec. 17. However, the decision may have saved the deal as Scott, a proponent, thought the measure would fail after reading the room.
“To be clear, we did not vote to kill the deal, nor should a three-week delay in a 30-plus year commitment be a deal killer to begin with,” Scott said. “As much as I really just want to vote and get this done today, I don’t think it’s there.”
A new Tampa Bay Rays stadium would anchor the Historic Gas Plant District’s redevelopment. Rendering: Hines/Tampa Bay Rays.
The bond issuance will finance the county’s $312.5 million contribution to Tropicana Field’s $1.37 billion replacement in St. Petersburg. The new ballpark would anchor the $6.7 billion Historic Gas Plant District redevelopment project.
The funding stems from heavily restricted Tourist Development Tax revenue accrued through overnight stays. The commission was, and still is, reluctant to approve the bond issuance in the wake of back-to-back hurricanes.
The team’s letter states they suspended work on the stadium and redevelopment projects. They called the bond issuance a formality and said it was “known and accepted” that approval was needed before the Nov. 5 election to meet the previously agreed upon 2028 timeline.
The Commission has since replaced two ardent supporters with newly elected commissioners Vince Nowicki and Chris Scherer. Nowicki was adamantly opposed to the deal, while Scherer struck a somewhat softer tone.
Commissioners Dave Eggers and Chris Latvala voted against the proposal in July. The project needs four yes votes from the seven-person board.
Cold feet?
Scott said the deal is so beneficial to the area that those upset over the team’s perceived lack of communication should vote in favor. He noted owner Stuart Sternberg told him, “Our cost estimates have all gone in the wrong direction, and we are on the hook for all cost overruns.”
Scott said that “was the first indication I had that the Rays might be having second thoughts.” He suggested that Sternberg either wants to renegotiate the deal or end it altogether and “hang the failure on the county commission, particularly our newest members.”
“You guys were just sworn in last night – this very may well be the biggest vote of your political career,” Scott added. “This is not about Stu Sternberg; this is about a $6.5 billion project … that will be generationally transformative.”
Auld and Silverman attended the meeting and, in the letter, pledged to “listen carefully” but not answer questions. A team spokesperson said the Rays would not offer any additional comments.
Much of the debate before the first bond postponement centered around where the team would spend the 2025 season after the Trop suffered over $55 million in damages during Hurricane Milton. The Rays will play at George M. Steinbrenner Field in Tampa.
Hurricane Milton caused over $55 million in damage to Tropicana Field. Photo: Will Vragovic / Tampa Bay Rays.
Much of Tuesday evening’s discussion centered on the initial agreements previously approved by the commission and St. Petersburg City Council. Mayor Ken Welch, who has remained steadfast in his desire to repair the Trop and see the new stadium to fruition, said he appreciated the county’s partnership and discussion in a prepared statement.
“We believe the economic fundamentals and the long-term benefits of the agreements approved in July by all parties remain valid,” Welch said. “We are focused on … fulfilling our obligations under the existing use agreement. We will continue to work with our partners towards that successful outcome.”
What’s ahead?
The Rays will contribute over $700 million to a new stadium and cover any additional expenses. Administrator Barry Burton noted the team, rather than the city, would be responsible for operational, improvement and insurance costs.
“We shifted all the risk,” he continued. “What’s happened at Tropicana Field would be 100% on the Rays. They get the revenue, so it becomes their business.”
In October, Assistant County Attorney Donald Crowell said the county and city must complete the bonding process by March 31. He clarified Tuesday that there is no specific timeline in the agreement.
However, Crowell said there are “practical repercussions” to delaying the issuance. The Rays wrote that they fulfilled their required obligations, including completing 50% of design documents and securing financing.
“While we are focused on preparing for a unique 2025 season, we stand ready to work on a new solution with any and all partners to preserve the future of Major League Baseball in Tampa Bay for generations to come,” Auld and Silverman said.
From left: Rays president Matt Silverman; St. Petersburg Mayor Ken Welch; City Council Chair Deborah Figgs-Sanders; and Pinellas County Commission Chair Kathleen Peters celebrate local officials approving a new stadium deal in July. Photo by Mark Parker.
Commission Chair Kathleen Peters, who oversees the Tourist Development Council (TDC), said the county’s bed tax coffers have only declined 1% from a record-breaking 2023. Commissioner Renee Flowers reiterated that state law prevents the money from going toward storm recovery efforts or infrastructure improvements.
Nowicki noted that a TDC survey found just 3% of tourists visited the area solely to attend Rays games. Peters said that equates to over 470,000 people.
She believes Pinellas has become a top tourist destination due to its “whole package.” Peters said losing baseball would create “a void in what we have to offer, and I don’t think we can ever get that back.”
The county’s stadium agreement is separate from the City of St. Petersburg’s redevelopment deal. Administrator Rob Gerdes said repairing the Trop by the 2026 season and a new stadium opening in 2029 “could actually be perfect.”
Nowicki questioned if the Rays could back out of the stadium agreement and still redevelop the surrounding property, which was sold at a discount to facilitate both projects. While Gerdes said team and city officials have not discussed that possibility, he said it is a valid concern.
“My family lost three businesses as a result of the Trop that is sitting there right now,” Flowers said. “I see this as a huge opportunity to not only right the wrong but to give a community that has been struggling for a very long time to be a part of and embrace something.
“This is their moment.”
The commission received 206 pages of emails in favor of the projects and 83 opposed. Peters said the delay would allow the new commissioners to read through the correspondence and talk to additional stakeholders.
SB
November 21, 2024at11:30 am
Tropicana Field: A Comedy of Errors (With a $75 Million Punchline)
St. Petersburg is being asked to consider spending $1.4 billion on a new baseball stadium, but before we get excited about doubling down, let’s take a walk down memory lane and revisit the Tropicana Field fiasco. Spoiler alert: it’s a story of big promises, bad decisions, and taxpayers left holding the bill. Add in the Welsh city administration’s gamble on reduced insurance during the hottest Gulf waters in recorded history, and we’ve got a sequel no one asked for.
Act One: The Promises That Weren’t Kept
1. “We’ll bring Major League Baseball to St. Pete!”
Sure, eventually. But let’s not forget that Tropicana Field opened in 1990, and the Tampa Bay Devil Rays didn’t arrive until 1998. For eight years, taxpayers were paying to maintain a baseball stadium with no baseball. It was like buying a Ferrari and letting it sit in the garage while you waited for a driver’s license.
2. “It’ll revitalize downtown!”
The stadium was supposed to be an economic game-changer, bringing jobs, businesses, and life to the area. Instead, downtown St. Pete’s real growth came from investments in the arts district and waterfront—things that had nothing to do with the Trop. Meanwhile, businesses near the stadium stayed as lively as a Tuesday night at a DMV.
3. “Tourists will flock to the games!”
They didn’t. The Rays have consistently ranked near the bottom of MLB attendance. Tourists come to St. Pete for the beaches, museums, and, frankly, air conditioning—not to watch baseball in a half-empty dome that feels like a warehouse.
4. “Taxpayers will see the benefits!”
With a $138 million construction cost (mostly public funds) and ongoing millions in maintenance, taxpayers are still waiting for that magical ROI. It’s been decades. The only thing that’s consistent is the bill.
Act Two: The Insurance Gamble
Fast forward to 2024, when the Welsh city administration decided to cut insurance coverage on Tropicana Field to save money on premiums. This was during the hottest Gulf waters in history, when even amateur weather forecasters were saying, “Brace yourselves—this hurricane season is going to be a doozy.”
Enter Hurricane Milton, which caused $55.7 million in damage to the Trop, including a wrecked roof and flooding. With the reduced insurance policy, the city was left with a $22 million deductible. But wait—it gets better (or worse). Anyone who’s dealt with a home renovation knows cost overruns are inevitable. By the time everything’s repaired, that bill could easily climb to $75 million.
That’s right: taxpayers are now staring down a potential $474 per taxpayer bill—and that’s just to fix the mistakes of the past. For context, that’s like every taxpayer in St. Pete paying for a nice vacation… only to spend it fixing a broken roof on a stadium they barely use.
Act Three: The Ripple Effects
This $75 million disaster doesn’t end with a check:
1. Future Premiums Will Skyrocket
Insurance companies don’t like risks. By cutting coverage and rolling the dice, the city has likely earned itself higher premiums moving forward. Taxpayers will pay for this mistake for years to come.
2. Cuts to Public Services
Covering these uninsured losses means the city will have to reallocate funds, potentially cutting from services like schools, infrastructure, or hurricane resilience. Ironically, we might sacrifice storm preparation to pay for damage from a storm.
3. A Hit to the City’s Credit Rating
The Welsh administration’s financial decisions don’t just look bad—they make borrowing for future projects more expensive. Think of it as the Trop torpedoing St. Pete’s credit score.
4. Lost Revenue
While the stadium is out of commission or underutilized, any small revenue it generates from games and events disappears. It’s a double whammy: taxpayers pay to fix it while earning nothing back.
Act Four: Doubling Down on Another Stadium
Now, despite the colossal mess that is Tropicana Field, the city is considering spending $1.4 billion on a new stadium. This is like realizing your old car needs new tires and deciding to buy a Lamborghini you can’t afford instead.
Let’s be clear: Tropicana Field didn’t deliver on its promises. Attendance is low, the economic impact is negligible, and now it’s a $75 million cautionary tale. Why should taxpayers believe that throwing even more money at a new stadium will end any differently?
The Ironic Bottom Line
The Welsh administration tried to save money by cutting insurance premiums, only to get hit with a potential $75 million bill. Now, taxpayers are being asked to believe that a brand-new stadium is the answer. Here’s the thing: if stadiums were such great investments, billionaires wouldn’t be asking the public to pay for them.
St. Petersburg taxpayers deserve better. Instead of doubling down on past mistakes, let’s invest in things we know work—like beaches, parks, and attractions that tourists actually use. Otherwise, we’re just setting ourselves up for Tropicana Field: The Sequel. And no one wants to see that movie.
SB
November 21, 2024at10:52 am
Stadiums: The Billion-Dollar Strikeout
Building a taxpayer-funded stadium might sound like a great idea—until you remember they almost never work out. Cities across the country have tried it, only to find themselves with empty wallets, empty promises, and a giant concrete monument to bad decisions. Let’s take a tour of some of the biggest flops.
Marlins Park, Miami
Price Tag: $634 million (with $409 million from taxpayers)
The Pitch: Transform Miami into a baseball mecca.
The Reality: The Marlins have ranked near the bottom of MLB attendance since the park opened in 2012. The promised “economic boom” for Little Havana? Still waiting. Meanwhile, taxpayers are on the hook for decades, and the stadium’s retractable roof is more famous than the team playing under it.
Lucas Oil Stadium, Indianapolis
Price Tag: $720 million (taxpayer-funded portion: $620 million)
The Pitch: A palace for the Colts that would revitalize downtown Indy.
The Reality: Sure, the Colts got a nice place to play, but Indianapolis residents got a 1% hike in food and beverage taxes—and little else. Economic studies show no measurable impact on downtown development. Unless you count overpriced nachos as “revitalization,” this was a bust.
Yankee Stadium, New York City
Price Tag: $2.3 billion (over $1 billion in public subsidies)
The Pitch: A new Yankee Stadium would bring jobs and revitalize the Bronx.
The Reality: The Yankees upgraded to luxury suites, but the Bronx stayed the same. The area around the stadium is still struggling economically, and public parks were bulldozed to build parking lots. It’s nice that Derek Jeter had a fancy farewell, but locals didn’t see much of the supposed benefit.
Globe Life Field, Arlington (Texas Rangers)
Price Tag: $1.2 billion (taxpayer share: $500 million)
The Pitch: A modern stadium with air conditioning (in Texas, that’s a selling point).
The Reality: The old stadium—built in 1994—was fine, but the team convinced taxpayers they needed a new one. Locals now pay a higher sales tax, and Arlington remains a sprawling suburb with no meaningful downtown development near the park. At least the AC works.
Ford Field, Detroit
Price Tag: $500 million (taxpayer contribution: $70 million + infrastructure costs)
The Pitch: Bring jobs and energy to Detroit’s struggling economy.
The Reality: The Lions still lose, and Detroit’s economy didn’t magically improve because people came to watch it. Outside game days, Ford Field is a giant, unused space in a city already plagued by abandoned buildings.
SoFi Stadium, Los Angeles
Price Tag: $5.5 billion (privately funded, but…)
The Pitch: A shiny new home for the Rams and Chargers, and an economic engine for Inglewood.
The Reality: While the stadium itself was mostly privately funded, taxpayers picked up the tab for major infrastructure upgrades (like highways and transit improvements). Local residents have seen skyrocketing rents and gentrification, but the promised local economic boost hasn’t materialized. At least it’s pretty.
The Common Threads
Every single one of these stadiums came with lofty promises: more jobs, thriving local businesses, and booming tourism. But the reality?
1. Jobs are temporary (construction) or low-wage (concessions).
2. Spending shifts, not grows: People just spend their entertainment dollars on a game instead of a local restaurant or theater.
3. Vacant buildings most of the year: Stadiums are used 20-30 times annually, leaving them as massive, idle structures the rest of the time.
Why Do Cities Keep Falling for It?
Because billionaires are really good at pitching the idea that a new stadium will save your city. They’re not risking their own money—they’re risking yours—and laughing all the way to their private suites. If stadiums were such a great investment, why wouldn’t they pay for them themselves? Spoiler: Because they know they’re not.
Final Score
Taxpayer-funded stadiums are like betting your life savings on a scratch-off ticket: they’re shiny, exciting, and have almost no chance of paying off. Sure, they look cool, but when the hot dogs are gone and the lights are off, you’re still left holding the bill. Maybe it’s time we let billionaires build their own playgrounds.
tont
November 21, 2024at9:51 am
Some cities need a sports venue to attract any development or population – St Pete has all the development it could ever want – so let the Rays go if they dont want to pay their way.
Mike C
November 20, 2024at10:47 pm
Folks, the days of the public flipping the bill (or most of the bill) for sports franchises owned by billionaires are over. Do your homework, there are many examples…this is a bad deal. The Rays could expand the Yankees spring training facility by 5-6K seats and that would be sufficient for attendance. The Rays are not the Yankees, the Red Sox, the Dodgers or Braves. They aren’t going to pull in the fan base, attendance, and revenue required to make the deal valued for the city or county. Have the ownership pay for the project like the Kraft family. They still seem to have a lucrative business model.
The city and county would be better off, attracting real businesses, selling land parcels and developing an arena used for UFC, WWE, Monster Trucks, concerts, etc.. This is the Mayor’s and SP council’s vanity project and its nonsense and negligent.
David Skidmore
November 20, 2024at10:33 pm
I can’t think of a single city that has lost a professional sports franchise over stadium negotiations that didn’t come to regret it — and ultimately ended up paying more to attract a new team.. Ask our friends in Montreal how it has worked since they let the Expos walk.
Seattle (NBA) and St. Louis (NFL) have never replaced the franchises they lost.
Al Davis played Oakland and LA against one another, moving the team back-and-forth.
Charlotte paid much more to attract an NBA expansion team for a second time than it would’ve cost to build a new arena for the original Charlotte Hornets, who relocated to New Orleans.
So look at the long term effects instead of knee jerk reactions
HAL FREEDMAN
November 20, 2024at7:26 pm
Even without the MLB, there are still plenty of sports as part of the Tampabay package. Soccer, spring training, minor league baseball, etc. MLB plays mainly in the summer, when tourism is light anyway.
HAL FREEDMAN
November 20, 2024at7:22 pm
Yes, the delay could cause cost overruns. The Rays signed on to pick up overruns. BUT, the minute it looked like overruns might materialize, the Rays cry “poor” and say they can’t afford them. Let’s see their books, so we can see if they really can’t afford them. Now, we know who they really are…they always have their hands out and want more. Cancel the entire deal, and see if they really leave. If they do, we may be better off. And, while we are at it, do not repair the Trop. To waste that much money on an asset with a short life is more fiscal irresponsibility.
Dr, Anak
November 20, 2024at6:03 pm
Still haven’t heard where the Tarpons are playing next year….
Alan DeLisle
November 20, 2024at3:47 pm
Barry Burton’s comment is the most absurd yet. 100% of the risk of this project is on the city:
* The city pays for the site infrastructure.
* The city gives up the land.
* The city requires little to no development performance criteria.
* The city gives up all revenue generators, including naming rights.
* The city gives development exclusions for almost any reason.
* Community benefits don’t exist.
No Barry Burton, the city holds all the risk. This is what happens when leaders don’t know what they are doing. To call this a $6 billion development is an outright lie. Just read the actual agreement.
For the Rays to say that they can no longer afford the project based on everything they are getting shows what you are dealing with. They would never get a deal like this anywhere else in the country.
Here is some free advice on what would be a fair deal:
* The Rays pay for 80% of the site infrastructure.
* The Rays pay 80% of newly appraised land value.
* Phase 1 and 2 of the private development starts and finishes at the same time as the stadium with real penalties for failure to produce.
* Revenue is shared proportionally.
* A 20% MWBE and local hiring rate is applied.
Don’t let the Rays scare with baseless threats. With the fair deal above, the Rays will still make a ton of money on development. It is the city and the residents that are in a far worsening position. Do you hear the Rays concerned about that.
All the Rays will ever use is Wall Street tactics, force the other side to fold. What they never realize is residents see through this New York City approach.
The county and city should run as far away from this deal as they can. It will go down as the worst baseball/development deal ever negotiated. The mayor and the five Council members who voted for the deal sold out the city.
Richard M
November 20, 2024at3:36 pm
Not like any of that money would be going to hurricane relief. It’s a tourism tax fund that has been collected for a while. Let’s not also ignore the commissioners here so just got elected and have had a vendetta about a stadium for forever. Both sides are whiney children.
Billy Miller
November 20, 2024at3:14 pm
Tough to worry about the millionaire Rays owners and team members when there is so much destruction and disruption in our Tampa Bay Community. The Rays sound like a spoiled rich kid crying for attention.