Hillsborough County approves first $90M in renewed CIT money for Tampa Bay Rays stadium

The Hillsborough County Board of Commissioners took a significant step toward financing a new Tampa Bay Rays stadium Tuesday, approving the first $90 million in renewed Community Investment Tax (CIT) money for the project. This development, while a milestone, has been met with both support and controversy among residents and commissioners, particularly given prior statements about the use of the tax.

The decision to use renewed CIT revenue for a new sports stadium has generated debate because of discussions that occurred before the tax was renewed in 2024. During an April 2024 meeting, Hillsborough County Commission Chair Ken Hagan expressed support for keeping the renewed tax from being used to build new stadiums, stating, “I completely support eliminating the community stadium, not letting stadiums be built with the tax.” This stance created a disconnect when, earlier this year, Hagan acknowledged the crucial role of CIT funding in the stadium deal, stating, “This agreement does not happen without CIT funding. It just doesn't.” The ballot language voters ultimately saw did not specifically mention construction of a new sports stadium, fueling criticism from those who feel misled about how the renewed CIT would be spent.

Understanding the Community Investment Tax (CIT)

The CIT is a half-penny sales tax that Hillsborough County voters first approved in 1996. It was initially intended to fund a variety of public projects aimed at improving the quality of life for residents. Over the years, this tax has played a vital role in financing hundreds of essential public projects, including crucial infrastructure improvements like roads and bridges, community parks and recreational facilities, and ensuring the safety of residents through funding for fire stations and emergency services. Notably, the CIT also helped fund the debt associated with Raymond James Stadium, demonstrating its long-standing connection to sports-related infrastructure.

In 2024, Hillsborough County voters overwhelmingly approved a 15-year renewal of the CIT, with roughly 52% support. This renewal was presented as an opportunity to continue investing in vital community projects, but the subsequent inclusion of the Rays ballpark has sparked controversy and questions about transparency.

County staff reported that, prior to this approval, only one project had received funding from the renewed CIT: the Zoo Tampa project. This marks the second project to receive funding from this renewed revenue stream, placing the Rays ballpark in a unique and somewhat contentious position within the county's investment priorities.

The Rays Stadium Project: A Complex Financial Strategy

The proposed stadium project represents a significant investment for Hillsborough County and the City of Tampa. The overall cost of the stadium is estimated at $2.3 billion, with funding contributions planned from various sources, including the Rays themselves, Hillsborough County, and the City of Tampa. The $90 million approved from the CIT is just one piece of this complex financial puzzle.

The board's actions on Tuesday included not only approving the initial CIT funding but also amending the county’s capital improvement program and approving a budget amendment appropriating the first $90 million in renewed CIT funding to the ballpark project for fiscal year 2027. This signifies a formal commitment from the county towards the stadium’s construction, although county officials were quick to emphasize that this approval does not immediately trigger the release of funds. There are still several conditions and agreements that must be met before any money changes hands.

Community Concerns and Opposition

While some commissioners support the stadium project and its financing, others have voiced strong opposition, echoing concerns raised by residents. Elizabeth Braden, during Tuesday's public hearing, urged commissioners to reconsider committing public revenue to the stadium, particularly given the county’s other financial pressures. She cautioned against “borrowing hundreds of millions of dollars or locking up our sales taxes based on ghost projections from months ago.”

Another speaker, Anne Hartwell, articulated a sentiment shared by many residents, arguing that commissioners should prioritize essential public services like public safety, infrastructure maintenance, and administrative functions over a new sports stadium. This perspective highlights a fundamental debate about the allocation of public resources and the competing needs of the community.

Commissioner Joshua Wostal has been a particularly vocal opponent of the stadium deal, consistently advocating for its cancellation. He challenged his colleagues to “be bold and courageous right now and vote this down before it progresses any more.” Wostal’s opposition stems from his belief that the deal is not in the best interest of the county and that taxpayers were misled about how the renewed CIT would be utilized. His departure from the chambers after casting his no vote underscores the deep divisions surrounding this issue.

Legal Challenges and Future Steps

County leaders maintain that they sought legal guidance and believe the renewed CIT can legally be used for the ballpark. Commissioner Harry Cohen stated that the county received legal opinions supporting this position, adding, “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.” However, Cohen also acknowledged the possibility of a legal challenge and the importance of pursuing a bond validation process to preempt any potential lawsuits.

This bond validation process, which could begin within roughly two weeks, is a crucial step in solidifying the legal standing of the financing arrangement. It involves seeking court approval to ensure that the bonds are legally sound and that the county’s actions comply with all applicable laws and regulations.

County attorneys emphasized that Tuesday's actions are merely steps in a larger financing process. They clarified, “By approving this today, that doesn't mean we start giving the money over. It means we initiate the process.” Several conditions still need to be met before the county provides its financing, including proof of financing from the Rays and approval of another agreement involving a trustee.

The trustee arrangement is designed to ensure transparency and accountability in the disbursement of funds. Under this framework, money from the team, Hillsborough County, and the City of Tampa would eventually flow into a trust, with the trustee controlling disbursements to prevent misuse and ensure that funds are used solely for the intended purpose.

Additional Financing: Tourist Development Tax Bonds

Beyond the CIT funding, commissioners also approved a master bond resolution authorizing the county to issue up to $263 million in tourist development tax revenue bonds. This represents a separate funding stream, distinct from the $90 million in renewed CIT funding. The tourist development tax is generated from spending by tourists and is typically used to fund projects that benefit the tourism industry, such as hotels, attractions, and infrastructure improvements.

The board also approved adding the Rays ballpark to the county’s fiscal year 2026 and 2027 tourist development plan, further solidifying the stadium’s place within the county’s long-term financial strategy.

What Lies Ahead

The bond validation process represents one of the next major milestones in the stadium financing journey. This legal review will be critical in addressing potential challenges and ensuring the long-term viability of the project.

Commissioners also have several additional stadium-related agreements to consider, including the ballpark use agreement and other definitive documents. County officials anticipate that these items will return to commissioners for review in December, with additional documents potentially extending into the new year. These subsequent votes will be crucial in finalizing the details of the stadium’s construction and operation.

The Community's Voice: Jada Williams' Commitment

Jada Williams, focusing on issues vital to Tampa and West Hillsborough County residents, is dedicated to bringing updates and solutions to concerns ranging from crime to infrastructure. Her commitment extends from downtown Tampa to Town ‘n’ Country and Westchase, ensuring that residents have a voice in local government decisions. Residents are encouraged to share their stories and concerns with Jada through the contact information provided.

Related Developments and Context

The approval of CIT funding and tourist development tax bonds follows a series of events, including the Tampa City Council’s recent narrow approval of a $21 million Rays community benefits agreement. This agreement aims to mitigate the potential negative impacts of the stadium on surrounding neighborhoods and ensure that the project provides tangible benefits to the community.

Furthermore, the timing of this approval coincides with Florida voters enacting Amendment 3, which will significantly impact property tax revenue for Hillsborough County. The Florida Policy Institute estimates that this amendment could lead to a revenue shortfall approaching $1 billion over the first two years, raising concerns about the county’s ability to manage its budget effectively while also funding the stadium project. While the stadium’s funding is primarily reliant on tourist development and sales taxes, which are less directly affected by the property tax changes, the overall fiscal pressure on the county remains a significant concern for many residents and commissioners.

The approval of this funding for the Rays stadium represents a pivotal moment for Hillsborough County. While it moves the project forward, it also highlights the complex financial challenges and community divisions that lie ahead. The legal battles, community debates, and ongoing financial considerations will shape the future of this landmark project and its impact on the region.