The Tampa Bay Rays have reached a preliminary agreement to build a new stadium in Tampa.
The non-binding memorandum of understanding must now be voted on next week by the Hillsborough County Commission and Tampa City Council.
The MOU comes after months of negotiations.
It details plans to pay for construction of a $2.3 billion indoor stadium land now occupied by the Dale Mabry campus of Hillsborough College.
The team previously asked the local governments to pay for just under half the cost. That would have been around $1.1 billion.
The agreement released Thursday caps the public contribution at $976 million. Now, both sides must figure out where the gap in any money pledged will come from.
A majority of the public money would come from tourist bed taxes and the Community Investment Tax on sales. That half-cent CIT was extended by voters in 2024 for 15 years but had been marketed as not to be used to build stadiums.
Up to $263 million in taxes levied on hotel stays in Hillsborough County would be tapped.
The MOU states that $360 million from the CIT will be paid in four annual installments from the county.
"It's the biggest development in the history of Hillsborough County," commission Chair Ken Hagan told WDAE radio. "When you look at the overall investment into this overall development, everyone focuses on the ballpark. The ballpark is a relatively small part of the overall development, but it has the potential to be the same size or greater than (recent Tampa development projects) Water Street and Midtown combined."
The stadium would anchor a privately developed multiuse district, with offices, hotels and restaurants. A good chunk of the upfront payments would be paid back with future property tax growth in the surrounding Drew Park Community Redevelopment Area.
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The city would pay an amount not to exceed $80 million. An additional $100 million would come from bonds from the Drew Park CRA, which surrounds the proposed stadium site.
But the uncertainty of how much revenue would be generated — plus not knowing the full extent of the team's financial picture — was challenged Thursday by Tampa City Councilman Charlie Miranda.
During a scheduled CRA meeting, he said the short time frame could end up costing taxpayers.
"There's so many questions in my mind. Do we know who we're dealing with? How much money do they have? What's their project?" he said. The "memorandum of understanding doesn't tell you anything about them."
According to the MOU, here's how the public financing shapes up:
Hillsborough County contribution — approximately $796 million
- $360 million — Community Investment Tax
- $303 million — Tourist Development Tax
- $103 million — other unspecified county funds
- $30 million (approximately) — HUD Community Development Block Grant – Disaster Recovery
City of Tampa and CRA contribution — approximately $180 million
- $80 million — Community Investment Tax
- $100 million — CRA/tax-increment funding
The Rays had set a June 1 deadline to reach a financing agreement. The Rays' lease at St. Petersburg's Tropicana Field ends in 2028, so they want the new ballpark open by March 2029.
County officials had said they cannot meet that deadline. Commissioners are set to vote on the MOU at their Wednesday meeting, followed the next day by city council.
The deadline was spurred in part by a need to get $130 million in state funding to rebuild Hillsborough College to a corner of property. State legislators have a deadline of the end of the month to come up with their budget for the 2026-27 fiscal year.
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Hagan said if the MOU is approved by the city and county, it would take another two to three months to finalize the financing.
The Rays released this statement from CEO Ken Babby:
“The Tampa Bay Rays are delighted to announce that we have reached a Memorandum of Understanding on a new ballpark proposal, working alongside staff at Hillsborough County and the City of Tampa. We are extremely grateful for the commitment and spirit of partnership demonstrated by all parties throughout this important process and occasion for our community.
“The Rays respectfully but resolutely encourage Hillsborough County and the City of Tampa to approve the MOU and make possible a Forever Home for our community’s Tampa Bay Rays, breathe new life into the Dale Mabry Campus of Hillsborough College, and create a new privately financed neighborhood that will be an inviting and inclusive destination to work, live, learn, and play."
“Paramount for the Tampa Bay Rays in this process was to arrive at an MOU that protects all public funding currently allocated for police, fire, emergency management or response functions, or other previously committed public safety or service priorities. We have accomplished that important and unconditional goal.
“This is a rare and perhaps unprecedented moment for Tampa Bay. The Tampa Bay Rays are all in on this opportunity and look forward to working with officials in the days ahead to bring this project to life.”
