St. Petersburg’s elected officials are scheduled to meet Thursday for the first time since Oct. 3 to discuss issuing bonds to finance construction of the Tampa Bay Rays’ new stadium.
This City Council meeting is the second since Hurricane Helen on Sept. 19, and the first since Hurricane Milton damaged much of St. Petersburg, including Tropicana Field, the current home of the Rays. However, its members act as an expanded Budget, Finance and Taxation (BFT) Committee.
The administration still intends to provide $287.5 million to offset construction costs for the $1.37 billion baseball stadium and $130 million for infrastructure improvements in the surrounding historic gas plant district. . The Rays will pay for repairs, maintenance and insurance for the new stadium, which is designed to withstand a Category 4 hurricane.
“The long-term effects of the hurricane, including any capital resilience funding that may be required, are currently unknown,” the document states. “However, the City does not expect the financial impacts of Hurricane Helen and Hurricane Milton to have a material adverse effect on the City’s ability to repay its bonds.”
Mayor Ken Welch (center) addresses St. Petersburg City Council members during the Historic Gas Works Area Redevelopment Workshop in July. Photo by Mark Parker.
Initial cost of storm
The presentation, originally scheduled for Oct. 17, will be led by Tom Green, assistant city administrator, and Ann Fritz, director of debt finance. City officials have updated documents to reflect the effects of the storm.
“Since submitting the BFT package to the Oct. 17, 2024 meeting, we have had to update certain documents to add disclosures and a final review process from the parties regarding Hurricane Milton,” the PowerPoint presentation begins. is listed on the page. .
The section titled “Climate Change and Natural Hazards” will be the first to provide updated information on storm-related costs. The article begins by noting that Helen passed approximately 160 miles off the coast of St. Petersburg and made landfall in the Big Bend area of Florida on September 26th.
The document states that “rehabilitation and debris removal is ongoing” and that the “preliminary estimated loss to city property” is $18 million. That amount is likely to increase further as authorities continue to assess Helen’s damages.
The document then states that Milton made landfall as a Category 3 hurricane on Oct. 9 near Siesta Key, about 55 miles from the city. “The city experienced significant wind effects, resulting in damage to city property and Tropicana Field.”
Milton’s wind gusts, which exceeded 160 mph in St. Petersburg, shattered the stadium’s translucent Teflon-coated fiberglass dome. Engineers did not design the once-sealed facility to allow drainage, and subsequent water intrusion exacerbated storm damage.
“Preliminary losses to city-owned land and Tropicana Field are $70 million,” officials wrote. “The city is currently assessing the damage to Tropicana Field and city-owned land.”
Albert Whitted Airport in downtown St. Petersburg was one of several city-owned facilities damaged by the recent storm. Photo by Mark Parker.
The city is responsible for the repairs and insures the stadium. However, this does not cover widespread storm-related costs for municipal buildings.
City officials expect some of the expected losses from Herren and Milton to be “covered by external insurance.” They plan to supplement that funding with state and federal aid.
St. Petersburg’s general property insurance program has a limit of $100 million for combined storm and flood coverage. The authority must pay 10% of the first $50 million.
Additionally, each insured location has a 5% storm and 5% flood damage deductible “per cause of loss” with a minimum amount of $1 million. The city-owned Albert Whitted Airport sustained significant damage, and authorities are still assessing damage to water facilities.
However, the document states that these facilities will be insured under a separate program. Officials also plan to use St. Petersburg’s economic stabilization and equipment replacement funds to “keep the city operational” and support the recovery process.
Officials corrected previous language that said the city’s losses from the storm would likely fall within the “maximum and sub-maximum limits” of the external insurance program and that the damage would not exceed the deductible. The document says the administrators, like many voters, have asked the Federal Emergency Management Agency and the state for help to cover their losses.
Council members will vote to approve $75 million in tax-free funding for “stadium-related infrastructure” and $212 million for “stadium-appropriate expenses.” It must also agree to use Intown Tax Increment Financing (TIF) proceeds and a “maximum amount” for “pricing flexibility and issuance costs.”
The administration’s resolution also states that the city “determines that this project serves a public purpose” and that it is “in the best interest” to accept the underwriter’s offer to purchase the bonds “in a negotiated sale.” Certified.
The estimated October 2024 debt service for St. Petersburg’s stadium and infrastructure costs is $671.9 million. This represents a decrease of $12 million from April and a decrease of $32 million from October 2023.
