It's official - The Tampa Bay Rays have secured local government funding for a new $1.37 billion baseball stadium in a deal that will keep the team in St. Petersburg for decades to come.

In a 5-2 vote on Tuesday afternoon, Pinellas County Commissioners approved contributing $312.5 million of tourism tax revenue towards the construction of the stadium.

The tourism tax revenue is generated by a bed tax restricted to funding tourist-related development such as hotel expansions and other projects driving economic prosperity.  

The county's funds will only go toward the design and build of the stadium that will be the centerpiece of the new $6.5 billion Gas Plant redevelopment, an 8-million-square-foot mixed-use district the Rays are developing in partnership with Hines that will be the largest development in Tampa Bay's history. 

“This is quite a momentous day for our franchise, our fans and the entire Tampa Bay region - the Rays are here to stay in St. Petersburg,’’ Tampa Bay Rays Principal Owner Stuart Sternberg said in a news release from the team.  

The vote follows the City of St. Petersburg's approval of the stadium and Gas Plant District development agreement and signing off on their portion of the funding. 

The funding from both the city and county also guarantees the Major League Baseball team will remain in St. Petersburg for at least 30 years with two five-year renewals on the lease. Pinellas County will own the stadium. 

There also is a separate non-relocation agreement that commits the Rays to remaining in St. Petersburg for the duration of the lease.

‘’We look forward to building the best neighborhood ballpark in Major League Baseball, which will blend in beautifully with a world-class, mixed-use real estate project that honors the past and looks toward the future. We thank St. Petersburg Mayor Ken Welch, the St. Petersburg City Council and the Pinellas County Commission for their hard work. We look forward to working together with our partners for years to come on our shared vision for this transformative project,” Sternberg continued. 

Construction on the ballpark, which will be located on 13 acres east of the Rays current home, Tropicana Field, will begin in January 2025 and be completed in time for Opening Day 2028.

The Rays have selected Populous as the lead stadium architect, Minneapolis-based Mortenson Construction as the construction manager, and Apopka-based Finfrock as the design-build group for the parking garages.

The enclosed stadium is set to be the most intimate in Major League Baseball (MLB) with a capacity of 30,000 with at least 25,000 fixed seats across three levels. The unique pavilion-style design includes a fixed roof that peaks over the playing field and slopes toward the street. 

While the county is only responsible for its share of the stadium costs, County Commissioners Dave Eggers and Chris Latvala cast the no votes during Tuesday’s meeting, citing financing concerns and the ripple effect it may carry.

“I want professional baseball to stay here, I want the Rays to stay here, but at what price?” Latvala said. “This will be a $1 billion publicly funded subsidy to a billionaire. I'm not willing to put my name on that.”

Eggers also expressed issues about the county taking on debt to finance the planned stadium, recommending the team to renegotiate the county's share and come back in 30 days to present a new and "better" request. 

“This is so much more than a baseball stadium. It is poised to become, if we do it right, a world-class tourist destination,” Commissioner Janet Long said during the meeting. “It’s more than about the baseball stadium. It’s a transformational, once-in-a-lifetime opportunity." 

The City of St. Petersburg is contributing $417.5 million, including $287.5 million for the stadium and $130 million for infrastructure on the Historic Gas Plant District site. 

The city is also selling roughly 65 acres of public land valued at $280 million to the Rays for $105 million. The city would also fund a $12 million wastewater facility for the site. 

The Rays are picking up the rest of the tab - covering $700 million and any cost overruns for the ballpark. 

The remaining costs of the entire development will be funded using a mix of debt, equity, and other sources.

"We pushed all future capital expenses to them - insurance, exposure, and risk to the team and they've accepted that, and in turn, they get the revenues," Pinellas County Administrator Barry Burton reiterated to commissioners. 

Every five years, the team will be subject to a Capital Expenditure “CAPEX” review. 

The full buildout of the Gas Plant redevelopment, expected to take over 20 years to complete, will feature approximately 5,400 residential units, 750 hotel rooms, 1.4 million square feet of Class A office and medical space, and 750,000 square feet of retail space. 

“Hines is thrilled to join the Rays in this model public-private partnership to create the largest mixed-use development in the southeast United States,’’ Hines Senior Managing Director Michael Harrison said in a prepared statement.

‘’This is a unique opportunity to create an exciting and inclusive destination that honors the Historic Gas Plant neighborhood, offers well-paying jobs and new spaces for locally owned businesses, and attracts visitors from throughout the Tampa Bay region and beyond. It’s an honor to partner with the Rays, the City, the County, and the entire community to create this landmark project that reflects the vibrancy and values of St. Petersburg.”

The first interim development milestone requires 400,000 square feet of vertical construction to be completed by December 31st, 2030. 

At completion, redevelopment is estimated to create $443 million in total economic output and 15,000 jobs.

“The Historic Gas Plant District will be a welcoming neighborhood that will offer unprecedented opportunities for jobs and local businesses, a neighborhood that will help us meet pressing needs for workforce/affordable housing and new office space,” Mayor Ken Welch said in a statement. 

“Most importantly, this visionary development will honor descendants of the Historic Gas Plant neighborhood and deliver on unmet promises of housing, jobs, and opportunity. I thank the St. Petersburg City Council and the Pinellas County Commission for their bipartisan support, and I look forward to working closely with our Hines/Rays partners to transform our exciting vision into reality.’’