The Tampa Bay Rays, City of Tampa, and Hillsborough County have reached an agreement on definitive documents for a proposed $2.361 billion ballpark and surrounding mixed-use district at Hillsborough College’s Dale Mabry campus in Tampa. The agreement remains subject to votes by Tampa City Council and the Hillsborough County Commission and follows a non-binding memorandum of understanding approved in May. AECOM Hunt and Turner Construction have been selected to oversee construction of the new stadium.
The 134-page Stadium Development and Funding Agreement was delivered to local officials on Friday, August 21, ahead of a stipulated 5 p.m. deadline. Tampa City Council is scheduled to consider the agreement on Thursday, August 27, followed by a special Hillsborough County Commission meeting on Friday, August 28. County Commission Chair Ken Hagan has said the city must approve the agreement before the county can take action. Both governmental bodies must sign off before the bonding and funding validation process can begin.
Credit: Tampa Bay Rays
The agreement places the stadium budget at $2,360,930,000. The total includes $2.0017 billion for construction, $74.3 million for design and professional services, $55.3 million for permits, testing, fees, and insurance, $15 million for project administration, and $214.63 million in contingency. Design costs are to be paid through the private contribution.
The Rays’ stated private commitment has increased by $100 million from the May framework to approximately $1.37 billion, with the team also responsible for all cost overruns. The definitive documents identify $876 million in public contributions, including $796 million from Hillsborough County and $80 million from the City of Tampa. The May framework had called for approximately $1.27 billion from the Rays and up to $976 million in public contributions.
Hillsborough County’s $796 million contribution includes $303 million in Tourist Development Taxes, comprising $228 million in initial bonds, a $40 million reserve, and a $35 million second tranche. Another $360 million would come from the county’s share of the Community Investment Tax, with $103 million from other county funds and $30 million from a federal disaster recovery fund.
Credit: Tampa Bay Rays
Tampa’s $80 million contribution has been restructured as a four-year advance that would reimburse infrastructure projects completed by the Rays. Mayor Jane Castor said the city will not use Community Investment Tax funding for the contribution. The initial source of the funding has not yet been determined, while the city expects to recoup the money through future property tax revenue generated by the development and directed through a new Community Development District.
“We have agreed to provide the Rays with $80 million dollars over four years and that will come in the form of a reimbursement for infrastructure projects that they have completed. We will not be using CIT funding…the source yet to be determined, but it will be in a form that is the most advantageous to the City Of Tampa to our taxpayers, some form line of credit or again something that advantageous to us, that funding will be paid back through the home-rule TIF that is being created with the oversight of a CDD and so that is really the funding structure as far as the city is concerned. We have been hand-in-hand with the county working on the iterations of the TIF agreement,” said Mayor Jane Castor.
Another change from the May MOU is the elimination of a proposed $100 million contribution from the Drew Park Community Redevelopment Area. Instead, the Rays would privately place $100 million in taxable bonds, notes, or other indebtedness to finance public components of the ballpark, with debt service paid from tax increment directed to the new Community Development District.
The stadium property would also be removed from the Drew Park Community Redevelopment Area, meaning future property tax growth generated within the stadium district would no longer contribute to the Drew Park CRA tax increment. Changes involving the Drew Park, East Tampa, and West Tampa Community Redevelopment Areas remain subject to separate approval, with Tampa’s CRA board scheduled to review the changes on August 27.
Credit: Tampa Bay Rays
Councilman Bill Carlson, who participated in negotiations over the revised financing structure, said the arrangement could generate additional funding for municipal infrastructure.
“What I was trying to do is build consensus around the community,” Carlson said. “I personally am not a baseball fan, my friends and family are. But what I know is that the citizens of the community want solutions for our roads and flooding and parks and sidewalks. And part of that solution that we came up with was to create a fund that potentially would be up to $2 billion over 35 years for parks and roads and flooding and other things without raising taxes.”
The proposed stadium would rise on Hillsborough College’s Dale Mabry campus in the Drew Park neighborhood, directly across from Raymond James Stadium. The Rays would also privately finance a surrounding mixed-use district planned with a modernized Hillsborough College campus, businesses, residences, retail, and a major hotel. Future property tax growth generated by the development would play a role in financing the Community Development District and related public infrastructure.
The definitive documents establish an initial 35-year term and an accompanying non-relocation agreement requiring the Rays to remain in Hillsborough County during that period. The Rays would pay Hillsborough County $4 million annually in rent and have agreed to guarantee their payment and performance obligations under the agreements.
“From the very beginning my goal and I think everyone involved was to reach a deal that was equitable to all parties involved, and I think we’ve done that,” Castor said.
The Rays’ existing use agreement at Tropicana Field in St. Petersburg expires following the 2028 season, and the club has stated its intent to begin playing at the proposed Tampa ballpark by Opening Day 2029. A groundbreaking is targeted for September, with site demolition planned for December and foundation and bowl work to follow by March. The agreement targets completion of the stadium by March 31, 2029.
Rays Chief Executive Officer Ken Babby said the definitive documents establish the framework for the stadium, college campus, and surrounding development.
“Together with Hillsborough County and the city of Tampa, we’ve taken some big steps this year to make a Forever Home for the Rays in our region a reality – but none bigger than the one we are taking today,” Rays CEO Ken Babby said. “Today, due to the remarkable determination of many throughout this process, we have definitive documents that will serve as the framework to deliver a new ballpark, a reimagined Hillsborough College campus, and a privately financed neighborhood where we can all work, live, learn, and play. These terms – if approved – will deliver exceptional benefits and protections to the community well above and beyond the initial memorandum of understanding, thanks to the officials and staff at Hillsborough County and the city of Tampa. The Rays are grateful for their diligence over the past nine months, and especially thankful for their ideas and feedback. It’s the kind of community leadership we should all applaud and appreciate. We listened, and the result of our collaboration is a deal that improved each week for the public, is fair for all involved, and supports our goals. We will continue to have discussions with stakeholders as we look forward to the upcoming votes by the Hillsborough County Commission and Tampa City Council that will determine the outcome of our collective efforts. The commitment by the Tampa Bay Rays to this lifetime opportunity is absolute, with record private investment and guarantees that will secure the future of Major League Baseball for our region and leave no doubt that Tampa Bay is a world-class destination by any measure.”
Tampa City Council is scheduled to vote on the definitive agreement on August 27, with the Hillsborough County Commission scheduled to consider the package at its special meeting on August 28.
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Really ugly stadium. Why a freakin triangle? Glad the taxpayers won’t be on the hook for this.
Interesting move away from St. Pete. As for the architecture, it’s a huge upgrade from Tropicana Field, but I’m wondering how they will control the climate in an all glass structure.