Some of the Rays stadium agreements are ready. Here are the big takeaways. (2024)

As St. Petersburg and Pinellas County officials close in on negotiations with the Tampa Bay Rays for a new stadium and surrounding redevelopment, St. Petersburg City Council members on Thursday received a cache of agreements that would enforce how a new baseball stadium would be built, funded and operated.

But not all documents were ready Thursday. A memo said four agreements were not included because they are still under county review, with other matters still being negotiated, including how the Rays could sell or transfer ownership rights and how the team could borrow money against the agreement without City Council approval.

And despite council member Ed Montanari’s request for a two-week review period, the release of the documents Thursday means the council will have 13 days to consider an incomplete set of agreements before its June 12 workshop.

“My brain gets tired having these conversations over and over again” with city officials, he said. “City Council has been clear. ... We need to have the material.”

The eight available documents include an operating agreement that functions like a lease, a nonrelocation agreement that would keep the team in town for 30 years and a development and funding agreement that breaks down how a stadium would be paid for.

Upon a preliminary review, most of the big details have stayed the same compared to past document drafts: For a $1.3 billion stadium, the Rays are responsible for $700 million. The rest is split between Pinellas County, on the hook for $312.5 million from hotel and short-term rental taxes, and St. Petersburg, which is relying on future increased property values to pay off $287.5 million in bonds.

The Rays’ financing

The city has broken down how it plans to pay for its share of the stadium. Less is known about the Rays. But the development and funding agreement notes that the team will have access to at least one loan through Major League Baseball: Ongoing credit of at least $100 million for infrastructure. A previous draft of the agreement also referred to a league-wide credit facility of at least $90 million, but that loan does not appear in the latest version.
The Rays must document the rest of their payment plans, including other loans and cash holdings, before the city will issue its first bonds. They also must show that they’ve paid for at least $10 million in project costs so far.
The Rays retain all revenues from naming and broadcasting rights. They also would keep all parking fees and stadium facility revenues, from ticket sales to concessions. The Rays would pay to the county a $1 million licensing fee every year for 25 years with no adjustment for inflation.

Timelines and potential delays

Rays leaders have said they want the stadium ready for Opening Day 2028, and the agreement keeps to that timeline, with a requirement for “substantial completion” by Feb. 1 of that year. The Rays would be considered in default of the agreement if that deadline is blown.
There is some wiggle room: The agreement allows the timeline to be pushed back due to unforeseen events, such as a natural disaster or pandemic. The City Council can also approve change orders that allow delays. Unlike the proposed agreement for the Historic Gas Plant District — which would be built over decades — there’s no provision for delays caused by economic downturns.

Future stadium, ownership issues

The nonrelocation agreement says the Rays may not “solicit or enter into agreements” or “solicit or participate in negotiations” for playing team home games at any other location, with one big exception: the five years prior to the end of the 30-year term. A prior draft gave three years.
The Rays are on the hook for all maintenance, repair, operation and management costs of the stadium. The operating agreement says neither the city nor the county will have any responsibility for any improvements during the 30-year term. The Rays would also pay for property insurance.

Some of the Rays stadium agreements are ready. Here are the big takeaways. (1)

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Uses other than baseball

The team would have the right to schedule and stage “sporting events, special events, concerts, festivals, fairs, attractions, corporate events, business conferences, conventions, community festivals” and more.
The city would get 12 days each year to use the stadium for governmental or community purposes. The team would generally staff and manage those events at the city’s expense, with the city covering higher overruns. And the team would also get to keep any net revenues from city events, including from parking and concessions.
There are signs that the city could make use of it in a hurricane, though Rays president Brian Auld said Wednesday it won’t be used as a shelter. The operating agreement mentions housing essential city employees and their families and storing supplies and vehicles for emergency preparation and response.

City and county perks

With this new agreement, the county would get a perk the city has enjoyed since 1995: A suite. Both the city and county would get suites between first and third base at no cost, except for food and beverages, as well as parking passes. The city would receive 10 additional complimentary field-level seats for all ticketed events.
The operating agreement says the Rays should work with team broadcasters to refer to the stadium location as “St. Pete” or “St. Petersburg.” The Rays would also seek all necessary MLB approvals to allow team uniforms to include “St. Petersburg” during at least one home game.
The team would pay $400,000 per year to reimburse the city for traffic management by St. Petersburg police and city personnel. That amount would increase 5% every year. Any costs beyond that would fall to the city.
The Rays will provide at least 5,000 tickets (but not parking passes) each year to be given to low-income families via local charities.

Homes away from home

The nonrelocation agreement goes through scenarios in which the Rays might give up some of their home games to play elsewhere — think baseball’s annual Field of Dreams game, or this year’s games in London, Mexico City and Seoul. Major league teams must be willing to play up to six home games per year, or nine over a three-year span, at a neutral site. In one draft, the city pushed back, arguing that six neutral-site games in one year seemed “excessive.”
If the stadium and field become temporarily unplayable — say, following a hurricane — the Rays must try to find an alternate site in Pinellas first, then Hillsborough. So there’s a scenario in which they might end up playing in Tampa after all.

What’s missing

An earlier draft of the operating agreement included a section outlining the circ*mstances under which the Rays’ end of the deal could be transferred to another party. Those included a sale of 50% or more of the team, which would not require city or county approval. In the latest version of the agreement, that section has been omitted with a note that discussions are ongoing and the section will “be added before the City’s and County’s final approval of this Agreement.”
Agreements between St. Petersburg and Pinellas County need to be amended to move the stadium. The county owns the land under the stadium and leases it to the city to manage. Those documents are still being finalized and it’s unclear whether City Council will see those by June 12.