Can we still afford a new stadium – Part 1

According to a new article in the Catalyst, Stadium bond docs shed light on St. Pete storm losses, the St. Petersburg City Council has delayed meeting until November 21 to vote to as to whether to approve borrowing $417 million to pay for part of a new baseball stadium for the Rays.  Currently, with interest, the city’s cost will be $672 million.

The delay is logical.  There are a lot of questions to be answered. 

While the city says that it does not expect that the financial impacts of Hurricane Helene and Hurricane Milton will have a “material adverse impact” on its ability to pay debt service on the bonds, how is that possible given the widespread damage we all have seen and experienced? Further, what about the long-term effects of the hurricanes, including any capital resiliency funding that may be required, that the city admits is not known at this time?

We need answers to these questions and more.  And once we have the answers – all the costs of the storms to the city, the risks of future storms and their costs to the city, the known $5 billion+ of needed sewer and storm water improvements, and other priorities the storms have identified – we need to ask the big big question – can the City of St. Petersburg afford to vote yes, and borrow, with interest $672 million to pay for a new stadium? 

Before the City Council Members can vote, I hope everyone would agree we need answers:

1. Besides the stadium, what are the total costs to the city from hurricanes Helene and Milton?
2. What are the sources of funds to pay these costs, including how much will insurance cover?
3. If the city has to reach into its pocket to cover costs, what other priorities will go unfunded?
4. After evaluating the impact of the storms, what funding priorities important to the residents, businesses, and tourists need to be considered – addressed sooner? 

When it comes to the stadium, there are different questions:

1. Who is responsible for stadium repair costs?
2. What are the costs to repair the stadium?  We hear it could be as much as $70 million. 
3. How much will insurance cover?
4. How long would repairs take?
5. What if the city makes the repairs and there is another storm next year that rips off the new roof?  Who is insuring this cost? And if it happens, what is the city’s obligation to the Rays?
6. The current use agreement between the city and the Rays calls for repairs to the current stadium to start within three months of the damage. Since the stadium is only expected to be used for three more seasons, when do the costs of the repairs or the length of time to  make the repairs make no sense?  And if the city reaches the conclusion not to make the repairs, what are the implications?
7. If the team has to play elsewhere, incurring costs for rent, housing, offices, etc. how much are these costs and how much of these costs are costs to the city?
8. What if the City Council votes no to approving the bonds?  What are the implications?  What happens to the deal for a new stadium and what happens to the deal to sell Rays/Hines valuable land for far under market value?

I would suggest the county should be also be asking questions, as it is committing about $600 million including interest – funds it now probably needs for the beaches.  (We previously reported on this in No Home Run, Beaches or Baseball. Risk to Tourism Dollars):

1. What are the total costs to repair and renourish ALL of the beaches (the most important attractions to tourists)?
2. How much does the county need in reserves for future storms?
3. How much are the Tourist Development Taxes going to be impacted by  the storm? 

Way back in January, we wrote on No Home Run… Why renegotiation is necessary for the Rays/Hines deal… that with so many competing priorities, a new stadium was not what mattered most to our community with many greater needs.

As we revisit the issue today after two major storms have reset the table of local priorities, here is what Karyn Mueller, a contributor to No Home Run is saying now:

How can any elected representative of the public act in good conscience to obligate residents to $686,000,000 in debt to subsidize Stu Sternberg while people are homeless and debris are piled up on streets? 
How can they sleep at night? 
How much worse do things need to get before we realize we have more important priorities and funding needs? 
Clearly, the infrastructure not being prioritized has directly impacted homes and residents.
Clearly, we need better storm preparation plans and response. 
No one buys the charade anymore that the transferring of the Gas Plant property and our tax dollars is good for our economy. 
Where are the infrastructure improvements that we pay for? 
Why isn’t our public health and safety more important? 
Now we have $70 million more in needed repairs to the city from the storm damage. And the Rays need for our tax dollars continues to dominate the city’s priorities.

What do you think? Let us know.