St. Pete council belatedly approves Rays stadium bond issuance

St. Petersburg will uphold its end of a deal – thought dead two weeks ago – to help fund a new Tampa Bay Rays stadium.

The onus to break long-negotiated agreements approved in July now falls to Pinellas County Commissioners and the Rays. The team will keep 65 acres of prime real estate surrounding Tropicana Field if one of the two government partners reneges on the deal.

In a 4-3 vote Thursday evening, city council members approved a non-ad valorem tax bond issuance to finance St. Petersburg’s contribution to the Historic Gas Plant District’s $6.7 billion redevelopment. A $1.37 billion ballpark will anchor the 30-year project.

“We need to move this forward because, quite frankly, I think we’re calling their bluff by doing so,” said Councilmember Brandi Gabbard. “Hopefully, the county will follow suit, and then it’ll be up to the Rays to decide.”

At a Nov. 21 meeting, Rays president Brian Auld said a series of county delays killed the deal, at least in its current form. City Administrator Rob Gerdes asked for a termination notice that would have required the team and its development partner, Hines, to relinquish control of land discounted due to the project’s community benefits.

Gerdes now believes those comments were “semantics and mixed messages.” He said Thursday that the team meant the agreement to open a stadium in 2028 was dead, but “maybe not” in 2029.

“I think the gist of what they’ve been trying to say is that they’ve experienced cost increases … and they’re looking for ways to fill that gap,” Gerdes explained. “But as the mayor clearly stated, we cannot financially make up that gap for them.”

Holding a vote, much less approval, was far from certain. The council had until Jan. 9 to revisit the matter after its previous postponement. City officials added it to the agenda at the last minute Wednesday.

Councilmember Lisset Hanewicz admonished the administration for not providing adequate public notice. Two of her six colleagues agreed, and agenda approval – typically a foregone conclusion – narrowly passed by a 4-3 vote.

St. Petersburg Mayor Ken Welch (left) and Tampa Bay Rays president Brian Auld at a Sept. 23 event announcing the team was “here to stay” in St. Petersburg. The agreements remain tenuous. Photo by Mark Parker.

The debate began nearly four hours later, with Mayor Ken Welch noting recent discussions with county commissioners, Hines officials and team leadership. He also met Tuesday with Rays principal owner Stuart Sternberg at City Hall, and said the consensus was that agreements approved in July were “valid and in effect.”

“While significant issues do remain with regard to Rays stadium obligations, the discussions were productive,” Welch added. “What has not changed is our belief that the best path forward – and the path that best positions the city for any future decision by the Rays – is to move forward with these bond resolutions so that we are prepared to fulfill our obligations …”

The city will now issue three rounds of non-ad valorem bond sales not to exceed $77 million, $214.5 million and $42 million. The issuance will finance $287.5 million to offset stadium construction costs and $130 million to upgrade infrastructure throughout the surrounding vibrant, mixed-use community that pays homage to Black residents displaced from the area.

“We appreciate that the St. Petersburg City Council took action on this item today,” said Rays president Matt Silverman in a prepared statement.

Councilmember Gina Driscoll noted she asked her colleagues and team officials to “stop and just take a breath” at the Nov. 21 meeting. “I feel pretty satisfied with what has happened since then,” she said.

“We wanted to find out if the Rays were on the verge of sending a termination letter,” Driscoll continues. “It turns out that they weren’t. They’re still in, and so am I.”

Gerdes said the recent conversations centered around a perceived funding gap. He believes the St. Petersburg Area Chamber of Commerce and other community partners could help the team raise additional funding.

Jason Mathis, CEO of the St. Petersburg Downtown Partnership, recently told the Catalyst that “there are several well-heeled local groups who are talking about finding ways to support the team and keep them in St. Pete.”

Councilmembers Lisset Hanewicz, John Muhammad and Richie Floyd voted against the bond issuance. They also disapproved of the previous agreements.

The three council members expressed concern with how the Rays have handled the situation and comments in letters to the county commission. “It’s not clear how this is going to work out,” Hanewicz said.

County Commissioners will discuss their bond issuance for a third time Dec. 17. If approved, they would contribute $312.5 million in heavily restricted tourist development taxes, and own the new stadium.

Council Chair Deborah Figgs-Sanders said approving the bonds provided the city with leverage. She said the moment was about “so much more than just a baseball team.”

“I do not want us to forget that so many of the Gas Plant ancestors – they supported this deal,” Figgs Sanders said. “I want the city to be in the best place to say, ‘We honored our deal.’”