The agreement to construct a new stadium for the Tampa Bay Rays recently encountered a significant setback. The Pinellas County Commission postponed a crucial vote on issuing bonds that were intended to fund the team's new home field. This development has raised concerns among Rays enthusiasts and stakeholders alike.

Pinellas County's Decision and its Impact on the Rays

Current Deal and County's Contribution

The current deal stipulates that Pinellas County is set to contribute $312.5 million. This amount, in addition to the $287.5 million in bonds from the City of St. Petersburg, is essential for the stadium project. Without the county's funds, as per the Rays, the deal seems to be on the verge of collapse. This shows the critical role that Pinellas County plays in making the stadium a reality.The County Commission had previously voted 5 to 2 in favor of supporting the stadium during the summer. However, in late October, they delayed approving the first series of bonds. The composition of the Commission changed due to the November 5 election, with two of the "yes" votes replaced by new members who are perceived as unfavorable to stadium funding. Dave Eggers and Chris Latvala, who had earlier voted "no," still remain on the Commission. These new commissioners will be sworn in at the start of the November 19 meeting, where the stadium funding issue will be discussed. They will need to quickly familiarize themselves with the details of what they are voting for.

Tourism Development and its Role

The Tuesday vote centers around whether to assume debt to support the construction of a new stadium in St. Pete. The total debt after interest will be significantly higher than the $312.5 million directly allocated to the stadium. But if issued under the guidelines for self-supporting revenue bonds and notes, local taxpayers are unlikely to bear the burden.The money used to back the stadium bonds does not come from general tax revenue like sales or property taxes. Instead, it is generated through the county's lodging tax. When staying at a hotel or vacation rental in Pinellas County, in addition to the standard sales tax, a 6% Tourist Development Tax (TDT) is imposed. This tax is used for various tourism-related purposes.The majority of these funds (60% in Pinellas County) are dedicated to tourism promotion, including funding and staffing Visit St. Pete-Clearwater, which runs nationwide marketing campaigns to attract more tourists. The remaining revenue can be used for investments in events and capital goods that are at least tourism-adjacent.Beach nourishment is a crucial budget item for coastal communities. Beaches are a major attraction for tourists, but without proper maintenance, the sand gets washed away. Storms can accelerate beach erosion and increase the financial burden of beach preservation.

County's Funds and Their Limitations

In recent years, the state has relaxed guidelines to permit some additional infrastructure and transportation spending using tourism-related funds. However, these outlays still need to serve tourist needs. For example, covering the costs of the "trolley" between beaches is allowed, but funding transit improvements for local commuters is not.Paying to renovate or build professional sports facilities is not only allowed but is specifically named as a purpose of the Tourism Development Tax. Two percent of the Pinellas County hotel tax is dedicated to the Professional Sports Franchise Facility Tax and the Additional Sports Franchise Facility tax, with stadium/arena development as its goal. But the county is not obligated to use this entire 2% on sports facilities.According to the Tampa Bay Times, the county tourism board had accumulated a large surplus of funds as Pinellas tourism recovered from the early months of the pandemic. As of May, with these reserves and robust hotel tax collection, the county administrator believed that the county could afford beach nourishment and a new baseball stadium, along with potential investments in renovating/expanding the Dali Museum and the Phillies minor league and spring training complex.However, Hurricanes Helene and Milton may have led to lower tax collections or increased beach nourishment costs, potentially endangering the stadium investment. The current budget forecast already includes a significant increase in beach nourishment spending for 2026. Without accurate information on tax collections and beach nourishment estimates, it is difficult to determine if the county's Tourism Development Tax will be sufficient for the new stadium.

Commission's Reluctance and the Bigger Picture

The reason for the County Commission's hesitation in issuing bonds is understandable. Elected officials may be reluctant to use taxpayer dollars to fund a baseball stadium, especially when the team's owners are wealthy and may benefit more from the public investment. For example, St. Pete councilmember Richie Floyd has consistently voted "no" on the stadium due to his opposition to providing subsidies to large businesses.But it should be noted that this is not the Commission's stance. The entire purpose of the Tourist Development Tax is to support the private hospitality industry by promoting tourism. The Commission has already provided funds for the renovation of the Blue Jays facility and seems ready to do the same for the Phillies.Several county commissioners and local officials have expressed disappointment that the Rays will play in Tampa in 2025 while Tropicana Field is being renovated. But this seems like a distraction. Steinbrenner Field, renovated in 2017, has better facilities and access than the minor league stadiums in Pinellas County. Baycare Park, home of Phillies spring training, was also flooded during the hurricanes and is undergoing cleanup. It is unclear if MLB or the MLBPA would agree to a full season at either Pinellas-based venue.The Blue Jays stadium is in a residential neighborhood, and a full major league season there could cause problems. If the Phillies complex is ready to host a full season, it raises questions about why the team is asking the county for $40 million in upgrades.This leads us to ask why, with robust hotel tax revenues and reserves, the county is not using these funds to build a new stadium in St. Petersburg and ensure that major league baseball remains in the county beyond 2028. Is the County Commission more enthusiastic about supporting minor league baseball but reluctant to support major league baseball?One of the lead Commissioners against the bond issuance announced this morning that he is looking forward to meeting with the Rays in the near future. This may lead to another rescheduling of the Tuesday vote to allow for more discussions, but the reasons for these talks are unclear.Right now, the Commission's stance on Rays stadium funding does not look favorable. However, it is important to note that the actual deadline to float the stadium bonds is March 2025. Therefore, it is worth paying attention to both the Tuesday vote and the specific reasons for approving or denying the bond issuance if they receive any attention.The Commission will meet on Tuesday, November 19, at 2:00 PM. You can find the agenda here, and stadium funding is Item 22. The meeting will be livestreamed on the County Commission YouTube channel.*Pinellas beach nourishment is likely to be more expensive in the coming years due to another reason. The federal Army Corps of Engineers often covers over half the cost of beach nourishment but requires easements to access private property. Many Pinellas County beachfront property owners have resisted providing these easements, and the County has decided to spend more of its own money to preserve the beaches rather than fight with landowners over easements. Read more about this conflict here.