Rays' stadium funding deal advances, but Tampa City Council balks at terms

TAMPA, Fla. - The next major step in the Tampa Bay Rays stadium push hit a roadblock Thursday at Tampa City Hall, as city council members agreed to continue negotiations but signaled they would not support the current version of the deal.

City Council voting on Rays' stadium deal

The backstory:

City Council members voted to move forward with negotiations tied to the nonbinding memorandum of understanding, or MOU, for the proposed new Rays ballpark on the Dale Mabry campus of Hillsborough College.

However, several council members made it clear they oppose key funding components in the current proposal.

By the numbers:

As part of the $976 million in public funding the Rays are seeking, $80 million would come from the city’s portion of the Community Investment Tax, while another $100 million would come from the Drew Park Community Redevelopment Area fund.

Four of the seven council members argued the use of CIT funds for the stadium was inappropriate and raised concerns about how the negotiations were handled.

"If the administration or the Rays had come to us to ask us about the $100 million from the CRA or the $80 million from CIT, they would have heard our concerns and brought us a deal we could approve," council member Lynn Hurtak said. "When I first sat down with the Rays, I expressed immediately that I would rather see this as a TIF district or a CDD instead of using CRA funds."

Together, the city’s $180 million share would join the county’s proposed $796 million contribution. The larger stadium project is estimated at $2.3 billion, with the Rays responsible for more than $1 billion and any cost overruns.

Supporters say the project would keep Major League Baseball in Tampa Bay, redevelop part of the Drew Park area and bring new investment to Hillsborough College.

Critics question the amount of public money involved and whether taxpayers would take on too much risk.

Council members divided over stadium funding

What they're saying:

Council members Luis Viera and Alan Clendenin argued that rejecting the MOU outright would have halted negotiations entirely and jeopardized the city’s involvement in the project.

"I think that anybody who says that folks who oppose, whether stopping right now or eventually based upon philosophical issues, that they have no reasons whatsoever to do that are entirely wrong," Viera said. "There again are some legitimate concerns. There are legitimate concerns that I obviously acknowledge, but to me, the good far outweighs the bad in terms of moving forward at this time."

Council member Naya Young indicated she could support the project if a strong community benefits agreement is included.

With support from Young, Viera and Clendenin, the MOU received a fourth vote after council member Bill Carlson said he did not want to jeopardize potential state funding tied to the project.

Carlson also indicated he would likely oppose the deal if it returns in its current form.

Meanwhile, the vote on the Drew Park CRA funding was delayed.

Rays CEO says more negotiations are needed

The city’s two votes are tied to the proposed stadium project, which supporters say would keep Major League Baseball in Tampa Bay, redevelop portions of Drew Park and generate investment around Hillsborough College.

Critics continue to question the amount of taxpayer money involved and whether public infrastructure priorities could suffer as a result.

Rays CEO Ken Babby acknowledged Thursday that additional negotiations are necessary.

"I actually appreciate the delay of the CRA vote, because I think it allows us all collectively to work through the aspects of this that I know are important to council member Hurtak and others," Babby said. "We want a deal and ultimately an agreement that everybody feels is good and fair, and we're committed to doing that work."

Council member Charlie Miranda warned negotiators that the current proposal is not acceptable to some members of council.

"If this does not pass today, it doesn't mean it's the end," Miranda said. "Just go back to the drawing board and do it the right way. If this is your final offer, it’s a bad one. A terrible one for the taxpayers."

Commissioners approved the nonbinding MOU

Dig deeper:

The city votes come one day after Hillsborough County commissioners approved their part of the nonbinding MOU in a 5-2 vote. The county’s share of the funding is listed at $796 million. County staff said public safety projects are protected from any impact.

County officials also said the project would need to be added to a list of eligible projects under the Community Investment Tax referendum voters approved in 2022 to avoid a legal challenge over the use of that money. That would require a public hearing process.

Later Wednesday, Hillsborough College trustees voted unanimously to lease 113 acres of school land to the Rays for 99 years. The school is depending on $150 million in the state budget to help build new campus buildings planned for the south-west corner of campus.

Under the lease, the college would also have the right to weigh in on the rest of the development, which the Rays say would include stores, restaurants, hotels and offices.

What's next:

The memorandum of understanding remains nonbinding, meaning negotiations can continue while unresolved issues are addressed.

Those issues include long-term maintenance responsibilities, protections if private development stalls, construction oversight and the structure of a community benefits agreement focused on areas such as affordable housing, jobs and local business opportunities.

The Rays had previously set a June 1 deadline for securing agreements on the MOU, but that timeline now appears increasingly uncertain.

The next major discussion on the stadium proposal is expected on June 11.

Following Thursday’s vote, the Rays released a statement calling the council action "a strong and positive message" for the future of baseball in Tampa Bay.

"The Tampa City Council today sent a strong and positive message to our community by approving the non-binding memorandum of understanding and saying ‘yes’ to a ‘Forever Home ballpark,’ and the generational transformation for Tampa Bay that will follow," the team said in a statement.

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