Rays’ $2.361B Tampa ballpark moves closer to approval

The definitive documents for a Tampa Bay Rays stadium were delivered to Tampa officials Friday, setting up votes this week that would allow financing to proceed and a groundbreaking in September.

The contract appears on Tampa City Council’s Thursday morning meeting agenda after it was conveyed to the city’s document platform before a stipulated 5 p.m. deadline.

The county attorney’s office told commissioners some final issues must be addressed over the weekend.

ALSO READ: Tampa council, still awaiting final documents, sets a Rays stadium vote for Aug. 27

Commission Chair Ken Hagan has said the city council must OK the contract before a county vote. Both bodies must sign off before the bonding and funding validation process commences.

According to the documents, the Rays want to begin site demolition in December, and the foundation and bowl by March. It’s part of an aggressive timeline to open the stadium by March 2029.

The 134-page “Stadium Development and Funding Agreement” is the product of roughly six months of negotiations between the Rays, city, county and other project partners.

Mayor Jane Castor called the agreement a historic step for Tampa and the region.

“From the very beginning my goal and I think everyone involved was to reach a deal that was equitable to all parties involved, and I think we’ve done that,” Castor said.

The ballpark – now officially budgeted at $2.361 billion – would rise on land now used by Hillsborough College’s Dale Mabry campus in the Drew Park neighborhood.

The Rays will also privately finance a multi-use development surrounding the stadium. It would include a modernized college campus, businesses, residences, retail and a major hotel. Future property tax growth on the development will be a key revenue source for the project and public infrastructure.

That’s among the differences between the final package and a nonbinding memorandum of understanding passed by the city and county in May.

Another change stands out: the Rays’ commitment has increased by $100 million, to $1.37 billion, with a corresponding decrease in the public contribution, to $876 million. The team will cover about 60 percent of the stadium cost and all cost overruns.

The county’s investment dropped to $796 million:

$303 million in Tourist Development Taxes ($228 million initial bonds plus $40 million reserve and a $35 million second tranche).

$360 million from the county’s portion of the Community Investment Tax, a half-cent sales tax designated for public projects such as infrastructure and stadium improvements.

$103 million from other county funds.

$30 million from a federal disaster recovery fund.

Tampa’s $80 million contribution has been restructured as a four-year advance, with the city to recoup the money from future property tax revenue generated by a new Community Development District overlaying the college property.

Originally, this money was coming from the city’s CIT revenue – a term most of the city council was against.

The CDD plan was among many changes renegotiated over the past few weeks by Councilman Bill Carlson. Others include still-to-be-approved changes to three of the city’s Community Redevelopment Areas – in the Drew Park, East Tampa and West Tampa.

CRAs are blighted districts that use future tax-increment property tax revenue within their boundaries for redevelopment and infrastructure.

The CRA board, made up of council members, has special meeting scheduled to review the changes.

“This is the biggest deal to ever come to Hillsborough County,” Council Chair Alan Clendenin said. “This is a transformational project. It’s not just about baseball, but it’s recreating an entire area.”

The stadium land will be cut out of the Drew Park CRA, meaning property-tax growth from the stadium district will no longer be part of the CRA’s tax increment.

The MOU’s proposed $100 million Drew Park CRA contribution has been eliminated.

Instead, the Rays will privately place $100 million in taxable bonds, notes or other indebtedness to finance public components of the ballpark. Debt service will be paid from the tax-increment directed to the CDD.

The Rays will pay the county $4 million annually in rent, and an accompanying non-relocation agreement requires the team to stay in Hillsborough over the 35-year initial term.

The Rays also agreed to guarantee their payment and performance obligations under the definitive documents, giving the city and county additional protection if the team fails to meet its commitments.

“Due to the remarkable determination of many throughout this process, we have definitive documents that will serve as the framework to deliver a new ballpark, a reimagined Hillsborough College campus, and a privately financed neighborhood where we can all work, live, learn, and play,” Rays CEO Ken Babby said in a statement.

“These terms – if approved – will deliver exceptional benefits and protections to the community well above and beyond the initial memorandum of understanding, thanks to the officials and staffs at Hillsborough County and the City of Tampa.”

The Friday document release gives officials and the public a few days to review the documents – and still offer possible adjustments – before this week’s votes.

“We will continue to have discussions with stakeholders,” Babby said. “The commitment by the Tampa Bay Rays to this lifetime opportunity is absolute, with record private investment and guarantees that will secure the future of Major League Baseball for our region and leave no doubt that Tampa Bay is a world-class destination by any measure.”

Rick Mayer is a reporter with WUSF, the bay area’s NPR affiliate.