The Tampa Bay Rays on Thursday released financial specifics for its proposed $2.3 billion Tampa ballpark, outlining a request for more than $1 billion in public funding as negotiations continue.
According to a memorandum of understanding (MOU) overview from the team, the public contribution would include $750 million from Hillsborough County, $251 million from the city of Tampa, and $64 million from additional public sources.
The Rays would commit $1.235 billion to the stadium and be responsible for any cost overruns. The team described it as “one of the largest private investments in Major League Baseball history.”
Most of the county’s share would come from the Community Investment Tax, the overview states. The half-cent sales tax was extended for 30 years by voters in 2024, with the expectation that it would not be used for new stadium construction. The county has asked for an outside legal opinion on whether the tax can be used for the Rays’ venue.
The document reflects ongoing private negotiations and has not been formally reviewed in public meetings or analyzed by the key governmental partners, including the city, county, Tampa Sports Authority and Hillsborough College, the current occupant of the 113-acre property in the Drew Park neighborhood.
ALSO READ: Rays stadium talks create friction on Hillsborough County Commission
The MOU is “purely the work product of the Rays’ organization,” County Attorney Julia Mandell confirmed in an email to staff obtained by the Tampa Bay Times.
County Commissioner Ken Hagan, who has been involved in stadium discussions with the team, said negotiations are progressing but not complete.
“We’re getting painfully close, but there’s still some issues that need to be resolved,” he told WDAE radio on Monday, adding that county staff have been meeting “literally daily” with club representatives.
In a statement, Rays CEO Ken Babby said the MOU marks an “important step forward” as discussions continue to refine the proposal and move the process toward a formal term sheet.
Turning around the Drew Park CRA
The Rays plan to surround the ballpark with a multi-use development, including hotels, offices, restaurants, residential and recreational areas that would be “100 percent” privately financed.
Tax dollars from the established Drew Park Community Redevelopment Area (CRA) would be used to eventually pay off the stadium tab. According to the MOU overview, the project would transform “one of Tampa’s lowest-performing CRAs into one of the highest-performing through new, project-driven investment.”
Other public dollars would be sought from county tourist taxes and federally allocated disaster-recovery funds.
ALSO READ: Will a Rays’ roof redesign reduce overrun risks on new stadium costs?
All public funding would be used to issue bonds to pay for stadium construction.
The proposal specifies that no new taxes can be issued for the project, and there is a “do not harm” policy regarding public priorities such as police, fire and emergency management services.
The MOU overview lays out ambitious economic projections tied to the project, including an estimated $55.5 billion in total economic impact over 30 years, with $34 billion in direct impact from the ballpark and surrounding district. It also projects roughly 40,000 full-time equivalent jobs and nearly 11,900 permanent positions.
Additional highlights in the proposal include a commitment that the Rays would sign a 35-year lease, with extension options and a non-relocation promise. The Rays would manage, operate and maintain the stadium, and take responsibility for insurance and repairs.
The plan also promises expanded community benefits, local hiring initiatives, youth programming and neighborhood investment, particularly in the Drew Park neighborhood, site of the stadium project just east of Tampa International Airport.
The proposal further states that Hillsborough College would see revitalized facilities and expanded student opportunities, including internships and career pathways tied to the development. It also outlines that funding for police, fire and emergency services would not be impacted, and that the ballpark could serve as a staging area for first responders during major emergencies.
CIT “essential” to framework
The financing structure remains a central focus of negotiations, but officials stressed the package is still fluid as discussions continue. Hagan suggested the Rays could increase their private contribution as talks progress.
“I believe that they’re going to be willing to bridge any gap, as long as it’s within reason,” he said, adding that the organization has indicated it would be responsible for any cost overruns, which he called “essential” to the framework.
He also pointed to the Community Investment Tax (CIT) as a likely component of the public financing package, though the exact share has not been finalized.
“I don’t think the deal gets done without utilizing the CIT as one of the revenue sources of our capital stack,” Hagan said, calling it “critical” to getting a deal across the finish line.
According to the MOU overview, any CIT dollars cannot “impact committed police, fire, and emergency management projects.”
ALSO READ: Rays bring back postgame concerts with country stars Rice, Swindell and Davis
Another wrench may involve other teams that use city venues.
The NFL’s Tampa Bay Buccaneers have initiated discussions with the sports authority regarding “significant” renovations to Raymond James Stadium that could cost an estimated $1 billion. It is unknown how much of that would come from public money, but a decision must come before a Jan. 31, 2027, deadline for the Bucs to renew their lease, which expires in 2028.
In January, the NHL’s Tampa Bay Lightning extended their lease to play at Benchmark International Arena. The agreement includes a $250 million commitment of county tourist tax dollars to renovate the arena. The hockey team must pitch in $75 million.
And this week, County Administrator Bonnie Wise told commissioners the Rays’ request would cut into CIT money already approved for projects at the Lightning’s arena and the New York Yankees’ spring training facility, Steinbrenner Field, according to the Tampa Bay Business Journal.
The city, county and Drew Park CRA Community Advisory Committee must still approve final agreements. In addition, Major League Baseball must approve the ballpark and all project agreements, public bonds must be validated, and legal requirements and governmental processes must be met.
Sense of urgency
The timeline remains aggressive. A negotiated term sheet is expected as soon as next week, followed by a public workshop during this Thursday’s Hillsborough County Commission meeting, where officials are expected to refine deal points and review an economic impact report prepared by AECOM, an infrastructure consulting firm.
The city has scheduled a public meeting for May 5 at 5 p.m. at the Tampa Convention Center.
“I think the main thing for the workshop is for us to hear from the public, hopefully, but also to talk to each other about some of the deal points at least in concept, because we can’t talk outside of the public hearing,” City Councilman Bill Carlson said at Thursday’s council meeting.
The county is expected to vote on the deal May 6, and the city the following day, although Hagan said that could change.
ALSO READ: A full house welcomes baseball back to the Trop. And the Rays respond with a 6-4 win
If approved, the Rays have set a June 1 deadline to secure financing to stay on schedule for opening the stadium in March 2029. Delays could affect the cost and construction timeline, and the Rays' lease at St. Petersburg's Tropicana Field ends in 2028.
Hagan stressed urgency, telling WDAE “time is of the essence” and warning against delays that could push the project off schedule. He said he has told staff that “every effort needs to be made” to meet the targeted timeline.
While he acknowledged remaining disagreements, Hagan said progress has been made toward a term sheet and that only a few major issues remain.
Hagan emphasized the need for officials to independently verify the numbers the Rays have provided, but added the long-term return on investment is something “we cannot pass up.” The development “has the potential to be bigger than Water Street and Midtown combined.”
“This is a generational opportunity that we have in front of us,” Hagan said. “This is by far the biggest project I've ever been associated with, and that anyone in Hillsborough County's history has ever been associated with. And when you consider the significance, the depth, and the degree of what this project means, the ballpark is a small piece of the overall project.”
