The billion-dollar question in Tampa's Rays stadium deal
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Rendering: Courtesy of Tampa Bay Rays
Supporters say local governments' proposed $976 million investment in a new Rays stadium will pay off via tax revenue from the team's plans for a mixed-use district alongside it.
- But there's no guarantee that the district will be built.
Why it matters: The non-binding memorandum of understanding that county and Tampa leaders will vote on this week offers no assurances that the team will construct the mixed-use development.
- It sets no deadline for its completion and imposes no penalties for delays.
- The stadium itself is estimated to cost $2.3 billion; a little less than half of that figure will come from the county and city.
Between the lines: Dillon Gilman, an AECOM analyst who studied the economic impact of the stadium, told commissioners in April that the "majority of the fiscal benefits" will be realized outside of the ballpark.
- The AECOM study estimated the stadium alone would yield $258 million in net tax collections over 30 years, compared with $767 million from the surrounding mixed-use district.
- The Rays have also said the mixed-use district would be built in phases, meaning it could take years for the development to generate the level of tax revenue supporters envision.
Flashback: The now-defunct deal for a stadium in St. Petersburg required the developer to meet construction milestones by specific dates, including 400,000 square feet of development by 2030.
Yes, but: The new memorandum only lays out the contours of a stadium deal, and the county and city could still negotiate for more teeth to ensure the team's plan for a mixed-use district is not abandoned.
- And there are plenty of incentives for the Rays to follow through with their plans for a mixed-use district.
In Atlanta, the Braves' mixed-use district, The Battery, generated more profit last year than the team's baseball operation, all of which remained with the team, as revenue from The Battery isn't subject to MLB revenue sharing.
- Off the back of strong earnings boosted by Battery revenue, the Braves announced in November a goal of reaching a top-five MLB payroll.
- The Rays, who have cited The Battery as an inspiration, have one of the league's lowest payrolls.