County approves Rays stadium bonds • St Pete Catalyst

While significant hurdles remain, a deal to build a new Tampa Bay Rays stadium in downtown St. Petersburg has seemingly risen from the dead.

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Pinellas County Commissioners authorized a bond sale to finance their contribution for a $1.37 billion ballpark in a 5-2 vote Tuesday night. Their belated approval followed two postponements and several hours of ardent debate across multiple meetings.

Commissioners Dave Eggers and Chris Latvala voted against the long-negotiated deal in July. Their bond authorization approval – albeit for radically different reasons – may have kept the Rays from relocating to another market.

“I think there is something to be said for us making commitments, not only to this company but to any other company,” Eggers said. “I think what we say and what we intend to do is important.”

A new $1.37 billion stadium will anchor the Historic Gas Plant District’s $6.7 billion redevelopment. Rendering: Tampa Bay Rays/Hines.

Latvala hopes to facilitate a team ownership change and protect the 65 acres of prime real estate surrounding the stadium site. A new ballpark will anchor the Historic Gas Plant District’s $6.7 billion redevelopment.

Major League Baseball Commissioner Rob Manfred recently reiterated his support for keeping the team in Tampa Bay. Latvala said he became an ally to counter Rays owner Stuart Sternberg’s adversarial role.

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“I think it is very possible Stu Sternberg will try to keep the land development deal and use the hundreds of millions of dollars he will receive … to move the Rays out this market – if we do not pass the bonds,” Latvala continued. “I hope our vote today helps set the wheels in motion for a new owner and a new era of Tampa Bay Rays baseball.”

The county will contribute $312.5 million in bed taxes – a 6% surcharge on overnight stays – to Tropicana Field’s replacement. Officials can only use the money on projects that increase visitation.

St. Petersburg belatedly approved its non-ad valorem bond sale Dec. 5. The city will finance $287.5 million for stadium construction costs and $130 million to upgrade infrastructure throughout the surrounding mixed-use district.

Mayor Ken Welch thanked commissioners for their “thoughtful deliberation” and support for a “transformational project” in a prepared statement. “As I’ve stated from the start, this deal could not happen without the impactful partnership of Pinellas County,” he said.

“We will continue to focus our work on repairs to Tropicana Field to meet our current obligations, and our ongoing discussions with the Rays and other stakeholders to move this project forward.”

The Rays will contribute $700 million to a new stadium and cover all cost overruns. They must also pay for insurance and other operational expenses not included in the current use agreement with St. Petersburg.

Commission Chairperson Kathleen Peters has said the Rays stand to lose about $100 million by playing games at a minor league stadium in Tampa rather than a storm-damaged Trop. Latvala expects team officials to ask for at least that much due to construction delays they blame on the board’s bond authorization postponements.

“It was unsurprising to see the commissioners acknowledge how important the Tampa Bay Rays and our stadium development agreement are to this community and its citizens,” said team president Matt Silverman in a prepared statement. “As we have made clear, the county’s delay has caused the ballpark’s completion to slide into 2029. As a result, the cost of the project has increased significantly, and we cannot absorb this cost alone.

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“When the county and city wish to engage, we remain ready to solve this funding gap together.”

From left: Tampa Bay Rays co-president Matt Silverman; co-president Brian Auld; Sandy Sternberg, director of concessions and retail; and his father, owner Stuart Sternberg. Photo by Mark Parker.

The Rays have until March 31, the bond sale’s deadline, to prove they completed several planning and funding requirements. County officials have seen a $100 million MLB Infrastructure Facility loan, and documents obtained by the Catalyst state the team received a “preliminary financing commitment” from Goldman Sachs for $600 million.

David Abrams, a county consultant with Inner Circle Sports, said teams typically wait until deadlines approach to prove they have met those obligations. He stressed that the authorization does not require the county to sell the bonds – or release the proceeds – until the Rays reach initial and additional milestones.

Abrams also explained that if the team defaults on the agreements, they must reimburse the city and county for all expenditures. Commissioner Renee Flowers said, “All eyes will now be watching to ensure the Rays uphold their part of the deal.”

She added that the project’s benefits, particularly for underserved communities, were “unfathomable.” However, Flowers, like her county and city colleagues, is adamantly against providing additional public funding.

“Today, we made a decision to let the world know we’re still great, collaborative partners,” Peters said.