Tampa council narrowly backs court review of $80 million in Rays stadium bonds

Dated location file photo, February 28, 2021: Raymond James Stadium in Tampa, across Dale Mabry Highway from the proposed Rays stadium site. Photo: Devin Morris / Wikimedia Commons (CC BY-SA 4.0). Resized; website wordmark added. Photo source · License

Tampa City Council on Thursday, Oct. 15, voted to ask a court to confirm that the city may issue $80 million in bonds to cover its share of the new Tampa Bay Rays stadium planned for Hillsborough College's Dale Mabry campus, WUSF reported.

The vote does not borrow any money. According to WUSF, it seeks only a court ruling that the city can borrow to pay its share. The motion first failed on a 3-3 tie and passed after Councilman Bill Carlson, who was sick, voted virtually from home.

What the city already owes

The obligation itself is not new. The city has already agreed to pay the Rays $20 million a year for four years, WUSF reported. Thursday's question was how Tampa might pay it.

Steve Miller, the city's bond counsel, described the vote as strictly procedural. He said the goal is to validate that borrowing would be a lawful use of debt proceeds "if you so decide in the future to borrow money to pay any or all of one of the annual payments." Any actual borrowing would be a separate future decision.

Why flood and street projects came up

Council Chair Alan Clendenin argued that financing gives the city another option. "If we fail to finance this, what you'd be doing is you'd be taking money from other projects, including flooding projects and street reconstruction," he said, according to WUSF.

Clendenin said that without financing, the city would have to pay through general funds, the Community Investment Tax or another source.

WUSF reported that city officials can also pay by other means, including tourist development taxes, and that the measure does not authorize using property taxes. Borrowing has a cost: if the city issues bonds, its total payments could reach $140 million because of interest.

The dissent

Councilman Charlie Miranda was one of three no votes. He said the team has not agreed to other outstanding issues. "Do we have a community benefits deal done? Do we have the stadium lease deal done?" he asked, according to WUSF.

The larger project

The stadium would rise in the Drew Park area, across Dale Mabry Highway from Raymond James Stadium. The Rays have committed to paying half of its $2.36 billion cost and all cost overruns, with the rest coming from Hillsborough County and the city, WUSF reported.

The team hopes to break ground next month and open the stadium in time for the 2029 season.

What to watch

Two decisions remain ahead: the court's ruling on whether the city may borrow, and any later council choice to actually issue bonds rather than pay from tourist taxes or other sources. Residents concerned about flood and street budgets can watch for that later financing decision, since it determines whether interest adds to the city's cost.