Economist Analyzes Unanswered Questions in Rays Stadium Deal

Key Omissions in the Stadium Agreement

• 🧐 An economist, Geoffrey Propheter, states the memorandum of understanding between Hillsborough College and the Tampa Bay Rays is significantly lacking in details, even for a term sheet.
• 🦴 Propheter likens the agreement's skeleton to being "missing some bones," highlighting a lack of crucial information.

Public Funding and Tax Implications

• 💰 The agreement provides no specifics on rent terms or who will bear the costs, only mentioning the Rays will "pursue various economic incentive programs."
• 📊 Propheter questions the county's tourist tax capacity, suggesting it's a likely source for credits or abatements.
• 💸 Potential public funding could come from a sales tax or property tax, with direct annual outlays being politically riskier.

Long-Term Land Use and Revenue

• ⏳ If public money is involved, the Rays would deed the stadium to Hillsborough County to avoid property taxes, a loss of revenue for the county for 99 years.
• 🌍 This 99-year period means three generations of residents would not have access to the land as a revenue-generating asset.

Mixed-Use Development and Financial Surprises

• 📈 Teams favor mixed-use developments as they offer opportunities for increased revenue streams beyond the stadium itself.
• ⚠️ Propheter expresses surprise that insurance terms were not detailed, especially given past issues like those at Tropicana Field.