Hillsborough commissioners approve key funding to move Rays stadium project ahead

TAMPA, Fla. - The Rays' proposed stadium on Hillsborough College's Dale Mabry campus just took a step forward on Tuesday thanks to a pair of votes that approved key funding measures. 

Hillsborough County commissioners backed two pieces of funding  that will give the Rays a pot of money to start construction along Dale Mabry Highway. The more controversial one was on the $90 million pledge of Community Investment Tax (CIT) funds. 

Commissioners split on sales tax

What they're saying:

One Hillsborough County board member has insisted that the use of that money is illegal because the voter referendum that created the tax doesn't explicitly list stadiums as a potential use. 

"I'm about to have a lot more free time on my hands to ensure that the public is completely protected from this process," said Hillsborough Commissioner Joshua Wostal, who lost his reelection fight. "Don't you doubt that for a moment. I see that we're about to approve a slew of these items."

While Wostal expects there will be a legal challenge, the county's attorney has written legal opinions that disagree with that view. 

"I think that we've always expected that there might be challenges," said Hillsborough Commissioner Harry Cohen, who supported the project. "We covered ourselves pretty well with the legal opinions that we got that authorized the use of the CIT and determined that it was a permissible use. But there have been a lot of discussions about legal challenge and part of the reason to pursue a bond validation is to preempt some of that."

Commissioners also supported a payment of $263 million of tourist taxes that will go towards the $2.3 billion project. The county will eventually owe a total of $303 million.

Public divided over costs

The other side:

Public speakers were generally split on the project.

"The voters of this county have just sent a clear, undeniable message. They are angry about overspending, and this current stadium needs to be completely unwound," said one speaker. "Our residents are demanding fiscal restraint, because they expect local government to spend responsibly on actual public needs. I don't know, a stadium is a want in my book. They are tired of watching their hard-earned money get thrown at public or private corporate profits while local officials argue over cutting basic community services."

"Nothing says community more than providing stable, good-paying jobs," said another speaker, who backed the project. "We always spend CIT money on important community things like building, fixing, and repairing, which are included in this deal. But this mega-hospitality center, along with the state-of-the-art New College, partnered with first-class organization like The Raise that happens to have a diamond in the middle, is exactly what the community of Tampa Bay needs."

Amendment 3 impact on the proposed stadium

Dig deeper:

The stadium votes come at a challenging time for Hillsborough County’s finances.

Florida voters approved Amendment 3, which will significantly increase the homestead exemption for eligible homeowners. The change is expected to significantly reduce property tax revenue available to local governments.

According to the nonpartisan Florida Policy Institute, Hillsborough County could face a revenue shortfall approaching $1 billion over the first two years of the changes.

More than 80-percent of the county’s planned stadium contribution is expected to come from tourist development and sales tax revenue, which would not be directly affected by the property tax changes.

However, roughly $100 million of the county’s planned contribution would come from other county funds, adding to concerns about how the county will manage its budget as the tax changes take effect.

Tampa’s contribution

Local perspective:

The city of Tampa’s planned contribution is significantly smaller than the county’s.

Tampa has committed $80 million toward the stadium, which would be financed through bonds. While that arrangement would involve interest costs for the city, the property tax changes are not expected to affect that funding plan.

Next Rays stadium approval hurdles

What's next:

Tuesday's vote was for just $90 million of the $360 million total CIT ask. Another procedural vote at the county commission is likely to take place in another two weeks.

Tampa City Council also has several more votes to go before all the funding is approved.