Tampa City Council members narrowly approved a move Thursday asking a court to validate issuing $80 million in bonds to pay for the city's portion of building the new Rays stadium on the Hillsborough College campus.
It doesn't authorize issuing the bonds - just getting a ruling that it can borrow to pay its share. The city has already agreed to pay the Rays $20 million a year for four years.
City council chair Alan Clendenin says it gives the city another tool to borrow money if it needs to.
"We've signed an agreement, a legally binding agreement that we are obligated for $80 million," he said. "If we fail to finance this, what you'd be doing is you'd be taking money from other projects, including flooding projects and street reconstruction."
"This is an opportunity that gives us a tool in our tool chest to be able to fund our obligation," Clendenin said. "If we didn't do that, we would end up having to either pay it through general funds or CIT (Community Investment sales Tax) or some other form."
The vote was initially rejected because of a 3-3 tie. It was approved by getting Councilman Bill Carlson - who was sick - to vote virtually from his home.
Councilman Charlie Miranda was one of three "no" votes. He said the team hasn't agreed to other outstanding issues.
"I was advised that the stadium deal was done, that everything is signed and so forth. Do we have a community benefit deal done? Do we have the stadium lease deal done?," he asked. "So it's all on their side. We can only wiggle and say we want to be a worm, but we can't fly. Well, they can do whatever they want."
Steve Miller, the city's bond counsel, said it was strictly a procedural vote.
"This is a lawful authorization to not only do the $20 million per year for the contract," he said, "but if you so decide in the future to borrow money to pay any or all of one of the annual payments, we want to validate to protect the city that it is a lawful use of debt proceeds."
City officials also have the option of paying the money by other means, including tourist development taxes. It does not authorize using property taxes. If it does decide to issue bonds, the city's ultimate payments could go up to $140 million because of interest.
The Rays hope to break ground next month on the Dale Mabry campus of Hillsborough College and to open the stadium in time for the 2029 season.
The team has committed to paying for half of the $2.3 billion stadium and all cost overruns, with the rest from Hillsborough County and the city of Tampa.
