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Bonds

St. Pete Council Votes for Rays Stadium Bonds; County Vote Next

2024-12-05

The St. Petersburg City Council's Thursday vote to approve bonds for the new Tampa Bay Rays stadium in the Historic Gas Plant District was a significant moment. After weeks of stalled progress on a July-approved deal, the council's 4-3 decision now shifts the focus to the Pinellas County Board of County Commissioners, who will vote on December 17.

Urgency and Deliberation

During the open discussion among council members and citizens, the vote was ultimately in favor. Council member Gina Driscoll's indication of support ahead of the vote, emphasizing the Rays' lack of a termination letter and her own commitment, played a crucial role. This assured the passage of the vote.The Rays had previously indicated the deal was nearly dead due to increased costs from the bond approval delay. Council member Brandi Gabbard, who voted yes, saw approving the bonds as calling the Rays' bluff and forcing them to adhere to the initial deal rather than seeking a restructuring.Mayor Ken Welch spoke to the council before the vote, urging them to approve the bonds. He had met with the Rays and team owner Stu Sternberg earlier in the week, and the consensus was that the July agreement on the new stadium still stood.The Pinellas County commissioners have twice delayed a vote on funding for the new stadium. Hurricane Milton's devastation on October 10 made Tropicana Field unplayable in 2025, leading the Rays to play at Steinbrenner Field in Tampa next season with uncertainty about their future beyond that. A November damage assessment report estimated it would cost over $55.7 million to fix Tropicana Field for the 2026 season.Speakers at the meeting were divided on whether the council should approve the bonds. The Rays were not in attendance, but Council member Lisset Hanewicz noted their absence, highlighting the importance of in-person communication in a partnership. City administrator Rob Gerdes later clarified that the Rays had offered to attend but were not required.The implications of this decision are far-reaching. It not only impacts the future of the Tampa Bay Rays but also the economic and cultural landscape of St. Petersburg. The new stadium is expected to bring jobs, tourism, and a boost to the local economy. It also represents a significant investment in the city's infrastructure and future.As the Pinellas County commissioners prepare to vote on December 17, the fate of the new stadium hangs in the balance. The Rays will have to decide whether to seek alternative funding or return to the negotiating table. The city of St. Petersburg and its residents await the outcome with bated breath.The decision to approve the bonds was a complex one, weighing the interests of the Rays, the city, and the county. It required careful consideration of the financial implications, the impact on the local community, and the long-term prospects of the stadium. It remains to be seen how this decision will unfold in the coming months.

The City Council of St. Petersburg took a significant step on Thursday by approving bonds to fund a substantial portion of a $1.3 billion stadium for the Tampa Bay Rays and the surrounding Historic Gas Plant District. This decision, which came with a 4-3 vote, now places the responsibility on the Pinellas County Commission to potentially have the final say on the deal. The commission's decision could either lock in the Rays and its development partner Hines with the cost overruns the team now claims it can't afford or leave a $312.5 million gap in the project.

Delays and Tensions

During the previous council meeting on November 21, Council member Gina Driscoll pushed for a delay, emphasizing the need for the city to take a breath. Tensions had escalated at that meeting as Rays president Brian Auld indicated that the deal was dead. However, it later emerged that the Rays were still in the deal, and Driscoll urged the county to fulfill its part and see it through.The uncertainty regarding whether the Rays could fulfill their end of the deal approved in July continued to loom. Team presidents Auld and Matt Silverman wrote a letter before a commission meeting last month stating that the club could no longer afford to open a ballpark in 2029, a year later than planned due to delays in the bond votes. This led to the county and city delaying their votes and engaging in a back-and-forth in correspondence between the commission chairperson and the Rays.

Mayor's Perspective

Before the council's vote, Mayor Ken Welch, the architect of the deal, revealed that Rays owner Stuart Sternberg attended a meeting at City Hall on Tuesday. He stated that there is "consensus" that the agreements approved in July are "valid and in effect," although significant issues still remain regarding the Rays' stadium obligations. The discussions during the meeting were productive, and the options are becoming clearer.

City Administrator's Insights

City Administrator Rob Gerdes focused on the funding gap that the Rays "perceive." He suggested that the private sector could fill in these gaps through suite and name sponsorship rights. However, he also emphasized that the city cannot financially make up that gap.

Council Member's Concerns

Council member Lisset Hanewicz, a strong critic of the deal and its legal language, was disappointed that the Rays were not present during the Thursday vote. Gerdes stated that the Rays offered to attend but he believed it wasn't necessary. Hanewicz had spoken to Silverman and was told that the Rays decided not to come. She expressed her concern, stating that the deal started with a letter from the Rays and questioned how the city could approve hundreds of millions of dollars of bonds when the Rays were not present and sending out such letters.This is a developing story, and readers are encouraged to stay with tampabay.com for updates.

Stock futures on Thursday night were hovering near the flatline as investors anxiously awaited crucial payrolls data. This awaited information holds significant importance as it is expected to provide a clearer understanding of the domestic labor market's health and influence the Federal Reserve's rate decision at its December 17-18 policy meeting.

Anticipated Market Impact

With market expectations for a solid rebound in payrolls, an even stronger print above expectations could potentially force the Fed to reevaluate the pace of rate cutting next year. As stated by Charlie Ripley, senior investment strategist at Allianz Investment Management, this data will play a crucial role in shaping the future course of monetary policy.The continued strength of the U.S. economy has led Fed Chair Jerome Powell to emphasize that policymakers do not need to be in a hurry to lower rates. This stance further highlights the significance of the upcoming payrolls data in determining the trajectory of interest rates.Stock markets closed lower on Thursday, retreating from the records set in the previous session. Week to date, the S&P 500 has seen a 0.7% increase, while the tech-heavy Nasdaq Composite has gained 2.5%. The 30-stock Dow, however, is down 0.3% during the same period.

Investors' Dilemma

Investors have a mixed outlook on Friday's jobs report, which is one of the remaining major events for the market to digest before the Federal Reserve's meeting. John Flood, head of Americas equities sales trading for Goldman Sachs Global Banking & Markets, expects markets to rally on a softer report, suggesting a headline number in the 150,000 to 200,000 range is favorable for stocks. However, Goldman's official forecast reflects a 235,000 job increase in nonfarm payrolls, and Dow Jones has a consensus estimate of 214,000 jobs being added last month.This uncertainty among investors showcases the critical nature of the payrolls data and its potential to sway market sentiment.

Companies Making Big Moves

After Thursday's close, several companies made significant moves. Ulta Beauty, the beauty retailer, jumped 12% after posting better-than-expected earnings and revenue in the fiscal third quarter. It reported earnings of $5.14 per share on revenue of $2.53 billion, surpassing analysts' forecasts of $4.54 per share and $2.50 billion. The company also raised its full-year guidance.GitLab, the developer tools software maker, saw a 6% increase after posting a substantial earnings beat in the third quarter. It reported adjusted earnings of 23 cents per share on revenue of $196 million, exceeding the LSEG consensus estimate of 16 cents per share on revenue of $188 million. Additionally, the company announced a new CEO effective Thursday.Lululemon Athletica, the athletic apparel maker, also posted a quarterly beat, sending its stock more than 10% higher. It reported $2.87 per share in earnings on $2.40 billion in revenue, exceeding analysts' forecast of $2.69 per share on $2.36 billion in revenue.These companies' performances highlight the impact that strong quarterly results can have on their stock prices and the broader market.

Futures Open with Little Change

Shortly after 6 p.m. ET on Thursday, stock futures were showing little change. Futures tied to the Dow Jones Industrial Average dipped 20 points, or nearly 0.1%. S&P 500 futures edged slightly lower, while Nasdaq 100 futures shed about 0.1%. This indicates that investors are waiting with bated breath for the Friday labor data release to provide more clarity on market trends.In conclusion, the upcoming payrolls data is set to be a key determinant of market movements and the future direction of monetary policy. Investors will be closely watching for any indications that could impact their investment decisions.