Florida TaxWatch Examines Tampa Bay Rays’ Ballpark Proposal

Tallahassee, Fla. – Today, Florida TaxWatch released If You Build It, He Will Come: Florida TaxWatch Looks at the Tampa Bay Rays Ballpark Proposal. The report – which was conducted at the request of St. Petersburg City Councilwoman Lisset Hanewicz – examines the City of St. Petersburg’s (the City) and the Tampa Bay Rays’ joint plan for a new $1.3 billion, 30,000-seat ballpark on the existing site of Tropicana Field, which would be surrounded by nearly eight million square feet of mixed-use development. Given that this deal would require the City and Pinellas County (the County) to contribute approximately half of the costs, the government watchdog analyzes the projected community benefits, as well as the economic and fiscal impacts, in an effort to identify the risks and critical questions that should be addressed by local officials prior to a vote.

Florida TaxWatch Executive Vice President & General Counsel and Acting President & CEO Jeff Kottkamp said, “To be clear, Florida TaxWatch is not drawing conclusions as to whether the Tampa Bay Rays’ ballpark proposal is ‘good’ or ‘bad.’ With this report, we simply outline a variety of important factors, including a few major risks, that should be taken into consideration by local officials in order to determine if the plan is in the best interest of Tampa Bay area taxpayers. At the end of the day, fulfillment of the deal will require hundreds of millions of local taxpayer dollars – which could be used to pay for other needed services and improvements in the community – and therefore, we believe it should receive close and careful scrutiny before a decision is made. We look forward to discussing our research and recommendations with all involved stakeholders as the matter comes before the St. Petersburg City Council and Pinellas County Commission.”

Regarding the Tampa Bay Rays’ proposal, the City has pledged its share of funding (an estimated $287.5 million) from the sale of bonds, and the County has pledged its share (an estimated $312.5 million) from its tourist development, or “bed,” tax, with the Rays-Hines ownership group’s share consisting of all remaining project costs. The Rays-Hines ownership group would lease the ballpark for a 30-year term – with an option to extend an additional 10 years – and be responsible for the management, operation, maintenance, and payment of applicable taxes and fees, while retaining all revenues generated (with the exception of certain annual reimbursements and licensing fees to be paid to the City).

Community benefits of the redevelopment, particularly in the Historic Gas Plant District, the City’s second Black neighborhood, would include the establishment of an African American Museum, more than 6,300 residential housing and senior living units, and over nine million gross square feet of ancillary development for entertainment, retail, and office space, among other uses. Moreover, as part of the plan, the Rays-Hines ownership group would provide an additional $50 million to support business creation, restore the education pipeline, and more in the local area.

Concerns presented by Florida TaxWatch include that the deal’s total costs to the City and County would be nearly $2.4 billion, rather than the estimated $600 million, when accounting for actual and opportunity costs, and neither the City nor the County currently has the funds to pay its respective share, which could create a fiscal loss. However, after comparing cost-sharing strategies for a number of other publicly subsidized stadiums, the taxpayer research institute found that the Tampa Bay Rays’ strategy – with the City and County paying a combined 50 percent of the costs – is fair and reasonable.

Additionally, Florida TaxWatch cautions that there is always a possibility the Tampa Bay Rays could break their lease and relocate, leaving the City with a stadium and no team.

Florida TaxWatch concludes by asserting that “regardless of who is paying for it,” a new ballpark in St. Petersburg would “generate considerable consumer satisfaction,” and offers three recommendations to mitigate risk and balance the interests of the Tampa Bay Rays and local taxpayers:  

• The development agreement between the City, County, and the Tampa Bay Rays should include clawback provisions to afford the taxpayers some level of “money back” protection in the event that the projected economic and fiscal benefits do not materialize
• The ballpark lease should include provisions whereby revenues generated by the use of the ballpark (e.g., ticket sales, television viewing, parking, advertising, etc.) are shared between the Tampa Bay Rays and the City and County
• The lease for the new ballpark should include provisions that sufficiently deter the Tampa Bay Rays from relocating

For more information and to access the full report, please click here.

About Florida TaxWatch
As an independent, nonpartisan, nonprofit government watchdog and taxpayer research institute, and the trusted “eyes and ears” of Florida taxpayers for more than 45 years, Florida TaxWatch (FTW) works to improve the productivity and accountability of Florida government. Its research recommends productivity enhancements and explains the statewide impact of fiscal and economic policies and practices on taxpayers and businesses. FTW is supported by its membership via voluntary, tax-deductible donations and private grants. Donations provide a solid, lasting foundation that has enabled FTW to bring about a more effective, responsive government that is more accountable to, and productive for, the taxpayers it serves since 1979. For more information, please visit www.floridataxwatch.org.