City Council member has questions going into Rays stadium vote

ST. PETERSBURG — A Thursday morning discussion on the city’s pending bonds to finance a new Tampa Bay Rays stadium and infrastructure in the surrounding Historic Gas Plant Development set the table for a likely heated debate when the full City Council holds a vote on the matter later in the afternoon.

Mayor Ken Welch started off by saying if the partners to the agreements approved in July — the Pinellas County Commission, the St. Petersburg City Council and the Rays and their development partner Hines — fulfill their obligations, “then this impactful 30-year plan can move forward.”

“If any of those partners do not, then the plan will not come to fruition,” Welch said, adding that no additional funds are being requested.

The Pinellas County Commission on Tuesday voted for a second time to delay financing their contribution to the $1.3 billion stadium until Dec. 17. Unless one commissioner has a change of mind, the votes are likely not there to approve the bonds and would leave a $312.5 million hole in the plan for a ballpark.

The city is now up for approving bonds for their share of the stadium plus financing roads and sewers in the surrounding Historic Gas Plant District. The city’s share is $287.5 million for the stadium plus $142 million for the Gas Plant’s infrastructure.

But then Council member Lisset Hanewicz, who is against the deal, slid back into her role as a former federal prosecutor. She confirmed with the City Attorney Jackie Kovilaritch that the city is not legally obligated to approve any bonds, as they are not a condition to the agreements approved in July, and there is no deadline for either the city or the county to approve bonds by a certain date.

Hanewicz asked if the Rays wanted a penalty provision in the contract and what that would’ve looked like. Kovilaritch said there was discussion that the team could seek monetary damages in the event that the City Council did not approve the bonds, but that never made it into the contract.

“So I just want to make sure that whatever they said in their letter in terms of commitment and all that, the reality is we don’t have to approve bonds,” Hanewicz said.

Hanewicz was referencing a letter Rays presidents Brian Auld and Matt Silverman sent to the Pinellas County Commission and also shared with the City Council that the Rays have stopped work on the entire stadium and redevelopment project. She asked about the automatic termination provision in the contract that would allow the Rays to back out of the deal if they sent a letter delivering notice, and asked if the letter would serve as notice. Kovilaritch said the Rays letter does not serve as an official termination notice as it would have to match the language in the agreement.

Hanewicz confirmed that whatever the city or the county decide to do about the bonds, even if all bonds are approved, the Rays could walk away regardless.

Council chairperson Deborah Figgs-Sanders asked what would happen if the county votes no on its bonds. City Administrator Rob Gerdes said the agreement is not automatically terminated.

“So there would be an opportunity for the team to discuss with the county, maybe, you know, there’s different terms or something that comes to light to people during the agreement,” Gerdes said. ” The agreement basically goes into what I would call, ‘through the limbo.’”

Council vice chair Copley Gerdes, a staunch supporter of the deal and the nephew of Rob Gerdes, said the city should lead on the issue and approve the bonds.

“Frankly, I’m glad we’re the first to do it,” he said.

In their letter to the county and city, the Rays’ presidents said they have met “every one of our obligations required to move forward.” Assistant City Administrator Tom Greene said that while the Rays have provided evidence of securing $100 million Major League Baseball credit, the city has not seen evidence of a commitment letter that shows the balance of the financing for their $700 million contribution toward the stadium. Greene said it’s the city’s understanding they have reached an agreement.