Thrive
Rays redevelopment deal officially ends, progress continues
St. Petersburg will receive $400,000 annually and can redevelop part of the Tropicana Field site under a new licensing agreement with the Tampa Bay Rays.
City council members also unanimously approved allocating an additional $5.26 million to repair the storm-damaged stadium Thursday. The estimated $55 million project is on pace to conclude in April 2026, before the start of a new Major League Baseball season.
However, memorializing an arduously negotiated $6.5 billion plan to redevelop the Historic Gas Plant District and a new ballpark was the meeting’s watershed moment. While Mayor Ken Welch called the team’s decision to exit the deal “terribly disappointing,” officials will “refocus on our primary objective – the progress of our city.”
“The most important element of this is that the development rights of this area, previously held by the Rays since 1995, are now in the hands of the city,” Welch said in a prepared statement. “This puts us in the strongest position to assure that the future development of the Historic Gas Plant District meets the needs of St. Petersburg and honors the promises of equitable development.”
The licensing agreement encompasses four parcels: Two are for parking, one is for storage and one contains a team marquee facing I-275. Starting Aug. 1, the Rays will pay the city $400,000 annually for three years until their lease at the Trop expires after the 2028 season.
A roughly 2.3-acre parcel at the intersection of 1st Avenue and 16th Street South, the fourth, will cost the team just $12. The city can terminate that agreement following the 2026 season and still receive the exponentially larger payments.
City Administrator Rob Gerdes said retaining control of all four parcels would cause operational issues for the Rays. He also noted that there is “significant interest in potentially moving forward much faster” on redeveloping the fourth. “Therefore, we want to be able to get out of this agreement at our discretion.”
An overhead map highlighting parcels the city will lease to the Rays and redevelop (No. 4). Image: City documents.
Welch said the initial focus is on affordable housing for seniors, the city’s commitment to the Woodson African American Museum of Florida and advancing a workforce development ecosystem. “We are also working on a feasibility study for a right-sized convention center on a portion of the Historic Gas Plant property.”
The Rays are responsible for maintenance, utilities, fees and taxes associated with the parcels. City Attorney Jackie Kovilaritch said the deal is “just as positive” for St. Petersburg as “any other licensing agreement.”
Gerdes said administrators presented an initial payment structure based on potential revenues from the properties. The Rays countered with a “much, much lower offer.”
“We ended up meeting somewhere in the middle where we’re comfortable,” Gerdes continued. “With the $400,000 a year, that’s $1.2 million.”
He reiterated that administrators expect the Federal Emergency Management Agency (FEMA) to reimburse the city for most of the Trop’s repair costs. “But there’s a portion that we won’t get reimbursed for, and this will help us offset some of that cost.”
Councilmember Brandi Gabbard thanked Gerdes for his work on the redevelopment and now termination negotiations, a “hard mountain to climb.” She “never had a worry or a doubt that we would end up here today.”
Councilmember Richie Floyd, who opposed the development deal, called the saga’s conclusion a gift. He noted the city now has “a lot more finances to move forward with the things we need.”
With the latest allocation, officials have now dedicated over $40 million to repairing the Trop. Beth Herendeen, the city’s special projects manager, stressed that the current stadium use agreement remains intact and will transfer to a new ownership group.
“The city is still responsible for fixing the stadium, and whoever owns the team … is obligated to use the stadium until 2028,” Herendeen said.
A worker stands atop mesh netting needed to replace Tropicana Field’s roof. Photo: City of St. Petersburg.
City architect Raul Quintana said the $5.26 million contract would fund the installation of about 100 sports lighting fixtures and catwalk electrical systems. Council members must still approve funding for architectural finishes, flooring, audio and video equipment, and mechanical, electrical and plumbing components.
The city committed $23.78 million to replacing the stadium’s roof in April. Access netting needed to begin the job arrived July 14, and Trop should have a top in December.
Contractors will then begin “major interior work” and, finally, turf installation. “We are on the target schedule we said we would be, barring any major weather issues or concerns,” Quintana said.
Councilmember Mike Harting credited the administration for their progress on a “Herculean task in a very short period.” He noted there is “no path to follow” for a unique project that relies on manufacturers across multiple continents.
“I’m pretty sure that it gives a lot of people heartburn that we have to pay this and not know what the future brings to Tropicana Field,” said Councilmember Lisset Hanewicz. “If there was a way out, trust me, I would have been screaming about it.”
Ryan Todd
July 26, 2025at1:34 pm
Tear it down already.
Stop wasting our tax dollars and let the Rays sue us for breach of contract if they dare.
Alsn DeLisle
July 26, 2025at8:40 am
Sad situation.
Rays’ ownership walks away with $1.8 billion and the city is thrilled with $400,000 for a few years (that lease rate was not even market value). Plus the city needs to spend approximately $80 million on the Trop renovation when the Rays walked from the deal. This is absurd. Send Welch and the council to negotiating school please.
With the excuses and compliments flying, let me correct the record. The Rays did not have control of the site. The city could have moved forward with development without the Rays (read the current agreement objectively). That is why Kriseman structured his deal with or without the Rays. That way development would have been underway by now.
Why did this make sense? Because if you look at the history of the Rays, it is clear they are unpredictable and unreliable partners (count the number of deals they have walked away from, talk to Montreal). It’s the Wall Street way— risk adverse, status quo comfort.
Welch and the sold out five council members made three huge mistakes: 1. They sold out to what the Rays needed instead of putting the city first. 2. They negotiated a deal that surrendered all leverage and control to the Rays. 3. They concluded the Rays had way more contractual authority to fit a storyline.
If only someone could buy out city hall like buying the Rays. But I guess that’s why we have elections.
Rita Sewell
July 26, 2025at6:27 am
I say we bring banana baseball to St Petersburg. And the Soccer in the stadium too.
S. Rose Smith-Hayes
July 25, 2025at9:34 pm
Our city need the Rays and the Rowdies. Our city is turning into a giant ‘nursing home’. Young folk are fleeing because there is nothing to keep them here. Many that work here now live in other cities.
We have no Resorts, No nice supper clubs for dinner and a show. The Pier is so messed up, there is nothing interesting to do down there. It is NOT a tourist attraction. We have no small or large concerts. Everything happens in Tampa and now you want to lose the Rays and the Rowdies. Affordable housing is geared for Teachers and Nurses. What happens to the folk that make $24,000 to $39,000 a year??? no place to live?? We need places for ‘regular people to live. A one bedroom apartment is $1800 a month. It takes 3 $12 an hr salaries to afford that. No one is looking to the future of this city. We do Not need any more Condos, townhouses or apartments for affordable housing.
Layne Boleman
July 25, 2025at8:55 pm
Good riddance. Nice to see zero mea culpas or apologies to the public from the mayor or any of the council members who tried to pull this scam off on the citizens of St. Pete.
Our “valued community partners” now forcing us to negotiate for payments and dump $50 million into a useless building that will just be torn down. What an utter fiasco from public officials who’ve completely failed to represent the people.
Can’t wait to see Tampa falling all over themselves to shower money on a new crew of grifters demanding billions, while the public struggles to get by and pay off storm damage.