Thrive
Rays, government partners express stadium deal optimism
Tampa Bay Rays executives now believe they have the votes needed to advance previously approved plans for a new $1.37 billion stadium. Pinellas County Commission Chairperson Kathleen Peters subsequently expressed similar optimism.
The commission will consider approving a financing mechanism for its contribution to the ballpark, for a third time, Dec. 17. Despite the long-negotiated agreements seemingly rising from a fresh grave, financial obstacles remain.
“We anticipate that the Pinellas County Commission will authorize the bonds at their next meeting,” said Rays president Matt Silverman in a prepared statement. “As we stated in our letter three weeks ago, we remain ready to work with all key stakeholders to fill the funding gap their delay has created.”
The Tuesday afternoon announcement followed Major League Baseball (MLB) Commissioner Rob Manfred’s meeting Monday with Peters and County Administrator Barry Burton at the Lealman Exchange. He also met with St. Petersburg Mayor Ken Welch inside City Hall.
Peters told the Catalyst she feels more optimistic about the commission approving stadium bonds since Manfred’s visit. She believes one of three potential swing votes can play the hero’s role by protecting 65 acres of prime St. Petersburg real estate surrounding the stadium site, and keeping the Rays in Pinellas County.
“I’ve been optimistic all along that it wasn’t going to be our county commission that gave away that 65 acres,” Peters said. “And I’m optimistic that our county commission isn’t going to get rid of Major League Baseball in this area.
“In my heart, I’m optimistic we won’t do that.”
Pinellas County Commission Chairperson Kathleen Peters (left) with Tampa Bay Rays president Matt Silverman at a July event celebrating the partners reaching an agreement for a new stadium. Photo by Mark Parker.
Peters said Manfred reiterated his support for keeping the team in Tampa Bay. She assumes he has also called her colleagues, who cannot privately discuss government matters, per state law.
Commissioners Chris Latvala and Dave Eggers provided the deal’s two no-votes in July. However, Latvala has signaled a change of heart in recent social media posts.
“Spoke to MLB Commissioner Rob Manfred this morning,” Latvala wrote Tuesday. “He is committed to keeping baseball in Tampa Bay. So am I.”
The St. Petersburg City Council belatedly did its part to resuscitate the generational project Dec. 5. A new ballpark would anchor the Historic Gas Plant District’s $6.7 billion redevelopment.
The city will contribute $287.5 million to offset stadium construction costs and $130 million to upgrade infrastructure throughout the surrounding mixed-use community that pays homage to Black residents displaced from the area.
Councilmember Copley Gerdes said Tuesday afternoon that he is “very proud of the city completing all of its obligations in order for this development – and baseball – to stay in Pinellas County.
A funding impasse
Commissioners must now approve a bond sale to finance their $312.5 million stadium contribution. The funding stems from heavily restricted tourist development taxes accrued through overnight stays, and the county would own the stadium.
At a St. Petersburg Downtown Partnership luncheon Wednesday, Mayor Ken Welch reasserted that the city lacks the resources to help fill the Rays’ “perceived” gap. However, he remains optimistic about a path forward and pledged to work with local government, business and MLB stakeholders to “assist in any way we can.”
“The city has funded its obligation; hopefully, the county will fund its obligation,” Welch said. “And then, the Rays have a choice to make.”
Rays owner Stuart Sternberg is reportedly worth $800 million. The team will contribute $700 million and cover all cost overruns to build a new ballpark. Peters has said they stand to lose about $100 million by playing games at a minor league stadium in Tampa rather than storm-damaged Tropicana Field.
The average annual inflation rate for nonresidential construction projects is roughly 8%. The Rays have stressed that they cannot afford the increasing costs – due to the county and city’s bond approval delays – associated with opening a new ballpark in 2029 rather than 2028.
An 8% inflation rate on a $1.37 billion project equates to $109.6 billion annually. That is nearly the same price the city must pay to fix Tropicana Field.
“I would have a problem giving the Rays more money,” Peters said. “We’ve all negotiated this in good faith. We’ve all been hit with two natural disasters, back-to-back. The two storms, I think, have been a disruptor.
“I’m still optimistic.”
Editor’s note: This story was updated to correct a mathematical error.
Steven
December 14, 2024at4:55 pm
Get on with it, it’s passed it’s not passed. Either we’re building it or not.
Jazz Thomas
December 13, 2024at8:56 am
How? How does Ken Welch still get to lead this City? Is there a potential candidate out there who has a passing acquaintance with common sense?
On the County side, it is obvious the 2 new Commissioners didn’t come prepared, are disgracefully under informed, and seem to think they are City of St Pete Council members not County Commissioners. The state of local government is giving me a headache.
Velva Lee Heraty
December 12, 2024at6:20 pm
Thanks Alan for speaking your experienced truth. I and many others are heartsick over this “land grab” or should I say “Giveaway” As residents expect to see our taxes, utilities, and other basic services suffer. The city will be at the beck and call of privateers. Incredible.
When you stated, “Show the public the 30 year development proforma (financial real estate earnings projection) and the baseball financials over 30 years, including TV rights and Naming Rights revenue and then tell taxpayers the Rays need more money. “””It’s exactly the opposite: the City and County need more money back.”””
The City and County are walking into a disaster that will painfully play out for many years to come.”
John
December 12, 2024at1:05 pm
Is Alan saying the city will lose money on the Rays deal or that he could come up with a more profitable development plan? There was not much to do downtown before the Rays came.
Alan Whitman
December 12, 2024at12:33 pm
It sounds to me like Latvala Was told that they could find his money for the Threshers stadium in the deal.
Hugh J. Hazeltine
December 12, 2024at8:13 am
There is a sports commentator on YouTube named Brodie Brazil. He does a deep dive on all the stadium deals going on across the country.
From him I have learned: MLB has 30 teams and wants to expand to 32. When that happens the 30 team owners get to split the expansion fee paid by the two new teams. So 29 of the owners do not want the Rays to move to, Orlando, Nashville, Charlotte, or Montreal because that takes away a potential expansion city. All the owners get to vote to approve if the Rays want to move.
Alan DeLisle
December 11, 2024at5:41 pm
It’s just hard to believe. The Rays continue to say there is no deal, blaming the County for delays. Yet the City and County can’t get out of their way fast enough to pass the worst stadium/development deal ever.
So let me get this right. The Rays/Hines get mostly free land and infrastructure for 30 years and develop where they want and when they want, and the public leaders think the Rays need more money for the stadium. The amount of money that the RaysHines will make on this deal over 30 years is astronomical. You have got to be kidding!
Show the public the 30 year development proforma (financial real estate earnings projection) and the baseball financials over 30 years, including TV rights and Naming Rights revenue and then tell taxpayers the Rays need more money. It’s exactly the opposite: the City and County need more money back. The City and County are walking into a disaster that will painfully play out for many years to come.
The City is in a panic mode because they negotiated so poorly that even if the Rays walk on the stadium, they still have to deliver the 65 acres to the Rays/Hines for the next 30 years.
Wait, what was Welch’s goal: to keep the Rays. Well, I guess he gives away the land to the Rays, has forgotten about inclusive development, and waits to see what the Rays do. That makes sense?
I call this an economic development disaster. St Pete, you deserve so much better.
From an economic developer of some 35 years who has negotiated more successful multi-million public-private partnerships than I can count for four different cities, believe me when I say this is a bad deal for St Pete. I truly wish I could say otherwise.