Subject:
Title
Pinellas County approval of the documents to support funding for the design and construction, and subsequent management of a new stadium in St. Petersburg to be the new home of the Tampa Bay Rays Major League Baseball franchise and adoption of the Tourist Development Tax Revenue Bond Resolution (Master Bond Resolution). (Regular Agenda Item that is companion to Item No.46)
label
Recommended Action:
Recommended Action
Approve the following attached documents and adopt the Tourist Development Tax Revenue Bond Resolution (Master Bond Resolution) in furtherance of the financing, construction, and management of a new stadium in St. Petersburg to be the new home of the Tampa Bay Rays Major League Baseball franchise:
1.) Development and Funding Agreement
2.) Operating Agreement
3.) Team Non-relocation Agreement
4.) Team Guaranty
5.) Amendment to Current Sale Agreement
6.) Amendment to Lease Back Agreement
7.) New Stadium Parcel Agreement for Sale
8.) New Stadium Parcel Lease-back and Management Agreement
9.) Tourist Development Tax Revenue Bond Resolution (Master Bond Resolution)
• The City of St. Petersburg, on July 18, 2024, approved the execution of documents 1 through 8 above (collectively the “Business Documents”) as well as the City’s own master bond resolution to provide funding for this project. The approval of the Business Documents and adoption of the County’s Master Bond Resolution by the Board of County Commissioners will be contingent upon all companion agenda items (Agenda item number: 46; Legistar File ID: 24-1106A - St. Petersburg Intown Community Redevelopment Area resolution, ordinance and interlocal agreement) also being approved.
• For each of the Business Documents, the Chair (or in their absence the Vice-Chair) will be delegated authority to execute all of the necessary documents in a closing to be set with the City and the representatives of StadCo and TeamCo.
Body
Strategic Plan:
Foster Continual Economic Growth and Vitality
4.4 Invest in infrastructure to meet current and future needs
4.6 Support a vibrant community with recreation, arts, and culture to attract residents and visitors
Summary:
Summary
Pinellas County, the City of St. Petersburg and the Tampa Bay Rays have negotiated several agreements necessary to oversee the funding, construction and ongoing operations of a new stadium for the Tampa Bay Rays that would be located within the Historic Gas Plant District. Throughout these negotiations, the County has focused on limiting the County’s ongoing financial, construction, operations and maintenance risks while ensuring the Tampa Bay Rays remain in Pinellas County for the long term. These proposed agreements are presented to the Board of County Commissioners for their approval.
In addition, the Master Bond Resolution is presented for adoption by the Board to allow for bonds to be sold in support of the funding for this project.
Body
Background Information:
The Florida Suncoast Dome (now known as Tropicana Field) opened to the public on March 3, 1990, at a cost of $138 million. The Tampa Bay Lightning played in the stadium (then dubbed the ThunderDome beginning in 1993) as the area's National Hockey League expansion franchise. It was renamed Tropicana Field on Oct 4, 1996 when the Tampa Bay Rays (then the Tampa Bay Devil Rays) Major League Baseball expansion team first made St. Petersburg its home. The Rays have played there ever since and will continue to do so through 2027.
This project will replace Tropicana Field with a modern, state of the art, MLB stadium in which the Rays will play for the next thirty years.
The Business Documents relating to the new stadium reflect the efforts of internal administrative and legal staff, being supplemented with the guidance of professional sports facilities consultants as well as legal counsel experienced in stadium transactions, through extended negotiations including funding and business approaches among the City, the County and the Rays. The Tourist Development Tax Revenue Bond Resolution (Master Bond Resolution) will provide the County source of new funds to be committed to this project.
1. Development and Funding Agreement - Agreement between Rays Stadium Company, LLC (StadCo), the City and the County which covers the stadium’s development, construction and financing.
2. Operating Agreement - Agreement between Rays Stadium Company, LLC (StadCo), the City and Pinellas County which provides conditions for the ongoing operations of the new stadium over the next 30 years, with two 5-year renewals.
3. Team Non-relocation Agreement - Requires Rays Baseball Club, LLC (TeamCo) to cause the Tampa Bay Rays to remain in St. Petersburg and play all home games at the new stadium for thirty years, with the certain exceptions generally described below:
- As required by MLB for MLB Special Events, capped at 6 per calendar year,
- MLB cancels home games due to an MLB labor dispute,
- MLB requires all teams to play games in a specific location (“bubble concept”), or
- There is an Alternate Site Condition (if the stadium is unusable or inaccessible).
4. Team Guaranty - Rays Baseball Club, LLC (TeamCo) guarantees the payment and performance obligations of Rays Stadium Company, LLC (StadCo).
5. First Amendment to Agreement for Sale - Continues current ongoing provisions of existing sale agreement for property currently owned by the County but available for the Rays/Hines redevelopment project(s) and provides mechanisms related to the redevelopment.
6. First Amendment to Tropicana Field Lease-Back and Management Agreement - Continues current ongoing provisions of existing leaseback agreement for property currently owned by the County and leased back to the City, but also provides mechanisms related to the redevelopment for the Rays/Hines redevelopment project(s).
7. New Stadium Parcel Sale Agreement for Sale - Continues current ongoing provisions of existing sale agreement for property currently owned by the County that includes the new stadium and associated parking garage parcels that will be held separately from the property available for redevelopment under the Rays/Hines Redevelopment Agreement.
8. New Stadium Parcel Lease-back and Management Agreement - Provides the conditions for the City to continue to lease the stadium parcels from Pinellas County. Continues current ongoing provisions of existing leaseback agreement for property currently owned by the County that includes the new stadium and associated parking garage parcels that will be held separately from the property available for redevelopment under the Rays/Hines Redevelopment Agreement. Also recognizes the provisions of the new operating agreement which will be applicable to the new stadium and associated parking garages.
9. Tourist Development Tax Revenue Bond Resolution (Master Bond Resolution) - Authorizes the initial steps of proceeding with a bond offering with County Tourist Development Tax funds as the funding source for repayment of the bonds. Allows the bond validation process to move forward, which is a condition precedent in the Business Documents to the issuance of the bonds.
Fiscal Impact:
These agreements call for a net project fund deposit of $312,500,000 of bond proceeds from Pinellas County with the debt service of this bond (or bonds) to be paid from available Tourist Development Taxes likely over a 30 year period. This will necessitate a future Master Bond Resolution with a higher amount than $312,500,000 shown to allow for payment of issuance costs from the bond proceeds for experts such as bond underwriters, disclosure counsel, financing experts, and bond counsel.
These agreements also call for the project to retain all investment earnings on bond proceeds in the construction fund prior to being spent unless they are required to be paid to the federal government as rebate or yield reduction payments.
These agreements also allow for a County tax increment financing (TIF)-funded contribution from the previously agreed-upon St. Petersburg Intown Community Redevelopment Agency (CRA) . These agreements do not impact the current County cap on contributions to the Intown TIF which is set ata not to exceed amount of $108,100,000. Should these agreements be adopted, changes to the FY25 budget will be proposed.
Staff Member Responsible:
Barry Burton, County Administrator
Don Crowell, Chief Assistant County Attorney
Partners:
City of St. Petersburg
Tampa Bay Rays (HoldCo, StadCo, TeamCo)
Attachments:
Development and Funding Agreement
Operating Agreement
Team Non-relocation Agreement
Team Guaranty
First Amendment to Agreement for Sale
First Amendment to Tropicana Field Lease-Back and Management Agreement
New Stadium Parcel Agreement for Sale
New Stadium Parcel Lease-back and Management Agreement
Tourist Development Tax Revenue Bond Resolution (Master Bond Resolution)