The Tampa Bay Rays have decided to pull out of a $1.3 billion agreement to build a new stadium as part of a surrounding redevelopment of the Historic Gas Plant District in St. Petersburg.
In a social media post Thursday, owner Stuart Sternberg pronounced the deal dead. The statement alluded to delays in the project brought out about when Tropicana Field was damaged by Hurricane Milton.
“After careful deliberation, we have concluded we cannot move forward with the new ballpark and development project at this moment. A series of events beginning in October that no one could have anticipated led to this difficult decision," the statement said.
The team faced a March 31 deadline to decide whether to stick with the plan.
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Sternberg's statement said the Rays will continue searching for a new home in the Tampa Bay area, something Major League Baseball has insisted on since Sternberg began to waver on the stadium agreement with the city and Pinellas County.
"Our commitment to the vitality and success of the Rays organization is unwavering. We continue to focus on finding a ballpark solution that serves the best interest of our region, Major League Baseball and our organization,” he said.
Due to the damage at Tropicana Field, the Rays are playing this season in Tampa at Steinbrenner Field, the New York Yankees’ spring training facility. Sternberg’s statement said the team is expecting to return to the Trop next season.
“The city of St. Petersburg is currently advancing plans to restore Tropicana Field for the 2026 season. We are thankful for their efforts and are excited to return to our home field next spring," he said.
Milton destroyed the Teflon roof of Tropicana Field, among other damages. It has been estimated to cost at least $55 million to repair the building, which would then be torn down for a new stadium.
The Rays’ agreement with the city to play at Tropicana Field goes through 2027. However, the agreement gets extended for every year the team can’t play there.
In a statement, St. Peterburg Mayor Ken Welch said the city “intends to honor our current agreement to repair Tropicana Field in accordance with the current use agreement.”
However, he reiterated a previous stance that the Rays’ decision won’t thwart efforts to move ahead on the Historic Gas Plant District renovation.
“While the decision of Tampa Bay Rays’ ownership to terminate the agreements of a new stadium and new stadium is a major disappointment, it is not unexpected. Nor is it the end of the Historic Gas Plant District story.”
About the Historic Gas Plant District plan
In July, the Rays announced plans to build the stadium as the centerpiece of the $6.3 billion mixed-use development, a joint venture between the team and the Hines development firm. It was planned to include residential, hotel and Class A office space, a new Woodson African American Museum of Florida, a concert/entertainment venue, and green space.
The 86-acre site, where Tropicana Field now sits, was once home to Black residents and businesses before it was razed in the 1980s to make room for the stadium and interstate spur. In return, the city promised jobs and better housing to the displaced residents that never occurred.
In February, Welch repeated his commitment to honor promises made to the Gas Plant community. On Thursday, he said the Rays’ decision won’t change that.
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“The city will continue to pursue all avenues that will help us deliver on our ultimate goal: utilizing the HGPD property to benefit the community and fulfilling the 40-year-old promises of economic development and opportunity made to the African American community in St. Petersburg.”
However, the St. Petersburg chapter of the NAACP expressed “disappointment” over the Rays’ decision, noting “serious concerns about the commitment to equitable development, honoring promises made to the community and ensuring that historically marginalized voices are heard in this process.”
In the statement, the NAACP said, “the Historic Gas Plant site holds deep significance for St. Petersburg’s Black community. … Backing out of the deal instead of engaging in solution-driven dialogue is not just disappointing — it is unacceptable.”
Economic impact of the stadium, development
The ballpark and the development were expected to generate more than $6 billion in private investment. The development was projected to produce more than $1.4 billion in local property tax revenue over 30 years on land that now generates no property taxes.
The stadium was to be financed by the team, city and Pinellas County. After delays due to the hurricane, St. Petersburg approved bonds to finance $287.5 million for the stadium and $142 million for roads and sewers in the neighborhood. Pinellas County approved using $312.5 million backed by tourist development taxes.
The Rays were to contribute $700 million plus any cost overruns. However, the Rays expressed concern that the vote delays would push back the competition of the stadium until 2029, adding to the Rays’ tab.
That set up the deadline for the team to on whether to continue in the partnership.
Since then, at least three investment groups with Tampa-area ties have expressed interest in purchasing the Rays and keeping them in the region while Major League Baseball pressures Sternberg to sell, according to published reports.
That has raised to possibility of the Rays moving to Hillsborough County.
"Disappointed the Rays aren't following through with stadium plans in St Pete," Tampa Mayor Jane Castor said in an X post. "The goal has always been to keep the team in Tampa Bay. The City, Tampa Sports Authority & County are happy to talk with the team again, but any proposal has to make sense for our taxpayers & community."
Pinellas County Commissioner Chris Latvala has said new ownership could be granted an extension so the Rays could rejoin the St. Petersburg pact. In a post on X, he expressed disappointment over the millions of dollars already used on the project.
“When Stu sells perhaps he can pay back the taxpayers of Pinellas/St. Pete for the all the money that was spent on this deal,” he wrote.
This is a developing story. Stay with WUSF for updates.
