Tampa Bay’s cost of doing business in the big leagues
Writer: Mirella Franzese
July 2024 — With construction for the new $1.3 billion Tampa Bay Rays stadium set to break ground later this year, the project received a much-needed approval vote from the St. Petersburg City Council last Thursday. However, debates are ongoing over the city’s hefty financial stake and mounting public opposition.
The stadium, falling in line with other recent developments for major sports leagues in the United States that have incorporated retail, residential, and amenities for a vibrant fan and visitor experience, aims to remake the Historic Gas Plant District. The predominantly Black neighborhood was displaced during the construction of Tropicana Park in the late 1980s, which officially opened in 1990.
In June, the council cast an initial 5-3 vote, with Council Members Richie Floyd, John Muhammad, and Lisset Hanewicz voting against the plan, citing concerns over affordable housing commitments and a rushed timeline.
As it stands, the city and county have agreed to subsidize just under half of the entire project, with Pinellas County pledging $312.5 million, and St. Petersburg contributing $287.5 million in bonds.
“It’s one of the largest stadium subsidies in MLB history, and there is no revenue return to the city from it,” explained Councilman Richie Floyd, as cited by St. Pete Rising.
“I think the administration thinks that it’s worth the money to provide the benefits that we’re going to get, but my contention is that we’ve had offers to create all of those benefits multiple times over without subsidizing a stadium, and yet we chose to subsidize the stadium,” continued Floyd.
In addition to partially funding the construction work for the project, the city will also need to invest an additional $142 million on zoning, parking, and other road infrastructure.
“What happens if the city signs a deal committing $700 million to the Gas Plant District redevelopment and a new stadium, but the Rays aren’t ‘here to stay?,’” noted St. Petersburg City Administrator Rob Gerdes.
In addition to a new baseball home, the $6.5 billion project aims to rehabilitate the city’s downtown area by redeveloping the Historic Gas Plant District, including 750,000 square feet of commercial office spaces, 750 new hotel rooms, and 5,400 residential units — at least 600 of which will be affordable housing units.
Current plans for the stadium also count on the addition of on-site restaurants, breweries, recreational centers, and entertainment venues, which will keep the park open year-round for music concerts, festivals, conferences, sports competitions, and university graduations, among other events.
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Some St. Petersburg locals remain unconvinced with the proposal as they believe that the land is worth more than the purchase price. In June, a city-commissioned poll of 625 city residents actually found that 54% of locals are against the building of a new stadium — which some tenants have also called a “handout.”
As a result, groups of protesters have taken to gathering outside city hall during Council meetings to oppose the project. According to Bay News 9, these protesters will speak out against the project again come Jul. 18 to demand that the Rays pay rent in exchange for occupying the stadium.
“If you can see how this benefits our community for the next 30 years, it brings certainty to the whole issue of our only major league sports franchise in the city of St. Pete and brings thousands of jobs and honors the commitment to the historic gas plant, there will not be another deal as good as this one,” countered St. Petersburg Mayor Ken Welch to Fox 13 News reporters.
Under the present deal, the Rays will pay for more than half of the stadium, plus undertake the added costs of insurance and repairs, which the mayor considers to be a fair compromise.
As a 365-day venue, the Tampa Bay ballpark is expected to boost downtown tax revenue by 7% every year until 2042 and create at least 15,000 annual jobs, with a further 4,500 construction jobs.
Back in 2023, Matthew Silverman, president of the Tampa Bay Rays, spoke with Invest: and discussed the benefits of investing in the region.
“I am very excited about how Downtown and the rest of St. Petersburg will continue to develop,” he remarked.
“It is a once-in-a-lifetime opportunity to be able to construct a new neighborhood that honors the historical legacy and looks ahead to what could be.”
Top image via MLB
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Update (Monday, June 22nd: 12:46 p.m. EST): This article has been updated to reflect that the St. Petersburg City Council approved construction and funding for the new Rays stadium project last Thursday.
