Tampa Bay Rays public funding ballpark plans do not touch chord

Image: Tampa Bay Rays

The Tampa City Council voted 4-3 on May 21^st to enter into a non-binding Memorandum of Understanding (MoU) with the Hillsborough County and the Major League Baseball (MLB) team Tampa Bay Rays to build a $2.3 billion stadium at the Hillsborough College in Florida (US).

The Hillsborough County Commissioners voted 5-2 on May 20^th to approve a non-binding Memorandum of Understanding (MoU) taking a major step toward building a new stadium for the Major League Baseball (MLB) team Tampa Bay Rays in West Tampa in Tampa, Florida, US, through a $2.3 billion public-private framework.

The above decision moves the massive financial package forward despite vocal opposition from dozens of the community members during public comment. The $1 billion in public funding proposal for the new ballpark has also not gone down well with a majority of the Speakers.

The Rays have emphasized on a mixed-use neighborhood venue project comprising stores, restaurants, hotels, and offices.

‘axios.com’ stated that the May 21^st vote came at the end of nearly a five-hour meeting in which fans in Rays merchandise aggressively advocated for the deal and vowed that those who voted ‘No’ would not be forgotten.

The Tampa Bay Rays are an American professional baseball team based in the Tampa Bay area (US). The Rays compete in Major League Baseball (MLB) as a member club of the American League East Division.

The 45,369-seat Tropicana Field is a domed multipurpose stadium located in St. Petersburg, Florida, United States. ‘The Trop’ is the home of the Major League Baseball (MLB) team Tampa Bay Rays.
 

‘No’ Votes

The ‘No’ votes came from Council Members Charlie Miranda, Guido Maniscalco and Lynn Hurtak who took issue with using the half-cent sales tax arguing it was not intended for a new stadium.

Council Member Bill Carlson, who said he doesn’t believe in private-sector subsidies, made it clear he would vote against the stadium deal in the future but voted ‘Yes’ to help the Rays secure State funding.

The memorandum calls for the City of Tampa and its Community Redevelopment Agency (CRA) to contribute $180 million toward the new ballpark compared to the County’s $796 million.

Of that amount $80 million would come from the city’s share of the half-cent sales tax primarily earmarked for infrastructure serving the stadium such as the roadways and the sidewalks.

The CRA would cover the remaining $100 million with revenues generated by the stadium district which includes both the ballpark and the mixed-use development planned alongside it.
 

Between the Lines

‘axios.com’ further stated that the negotiations are far from over and it appears that the Tampa Bay Rays still don’t have the votes needed to get a final deal across the finish line in the Tampa City Council.
 

Time Factor

The greatest threat to a new Tampa Bay Rays stadium is time. The team had aimed to complete the deal by June 1^st but conceded (after some prodding) that it would be satisfied with the memorandum.
 

What’s Next?

All eyes are on lawmakers in Tallahassee (capital city of the US State of Florida) who are at work on the State Budget and whether these votes move them enough to provide the funds requested for the Hillsborough College’s million-dollar makeover.

The reimagined campus is central to the deal as its existing buildings would need to be razed to make room for the new ballpark.
 

Public Funding

Earlier, the Hillsborough County Commissioners advanced plans for the new West Tampa ballpark by approving a framework on May 20^th that sets the stage for a $2.3 billion deal. The measure passed in a 5-2 vote and calls for nearly $1 billion in public funding.

Approximately, 30 Speakers shared their thoughts at the meeting with the majority voicing opposition to the plan. Critics warned that public investments might not bring the expected returns and argued that the County should prioritize the other local needs. Some Speakers questioned the legality of utilizing the Community Investment Tax (CIT) funds for the project.

To protect the existing infrastructure the County staff emphasized that the critical safety projects will be preserved.

The negotiators noted that the visitors and the non-residents will pay between 16 percent and 20 percent of the total sales tax revenue collected. Under a revised payment schedule developed over the last several months the CIT sales tax payments will be spread across four years rather than delivered as a single upfront sum.
 

Speakers’ Concern

The Hillsborough College Board of Trustees unanimously approved to lease 113 acres of college-owned land to the Tampa Bay Rays for 99 years as part of the stadium development.

That is despite a majority of the five public Speakers saying they were concerned about this deal because the Rays are a private business asking for public money.

The college is depending on $150 million in the State budget to help construct the new buildings that are planned on the Southwest corner of the campus.

Under the lease the college will have the right to weigh in on the rest of the development which the Rays say will be a mix of stores, restaurants, hotels, and offices.
 

Public Funding Legal Hurdles

It remains unclear if the stadium project will face immediate legal challenges over its financing structure. To minimize the legal risks the officials acknowledge that the project must still be added to the official list of eligible CIT-approved projects which requires an upcoming public hearing process.
 

Great Economic Opportunity

The County Administrator described the stadium deal as a once-in-a-lifetime economic opportunity for the region. The proponents emphasized that the approved MoU is completely non-binding which gives the County Commissioners ample time to resolve the remaining disagreements before signing a final contract.
 

Rays Reaction

Following the vote the Rays released a statement expressing gratitude to the Board and its staff for their diligence, “We are grateful to the Hillsborough County Board of County Commissioners for its approval of the non-binding Memorandum of Understanding (MoU) that authorizes the staff to continue working with the Rays toward a definitive agreement that keeps this project, and Tampa Bay, moving forward. The Rays believe deeply in the power of a new ballpark, a reinvented Hillsborough College and a privately-financed mixed-use neighborhood that will positively shape our region well into the future. We look forward to continued negotiations in our mutual goal to deliver an agreement that is fair and beneficial to all.”
 

‘More than a Ballpark’

Ken Babby, Tampa Bay Rays Chief Executive Officer (CEO), sent out a statement which read, “From the beginning this project has been about much more than a ballpark. The May 20^th unanimous vote by the Hillsborough College Board of Trustees to approve the ground lease with the Rays unlocks the door for the college’s 46,000 students to access meaningful career pathways and real-world workforce opportunities with the world-class organizations and businesses.”
 

Key Question:

• Is using taxpayers’ money to build a new stadium for the Tampa Bay Rays a move in the right direction?

 
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