Thursday, August 29, 2019

Kriseman vs Foster, six years later — who was right on Rays?

Six years ago this fall, an incumbent mayor, who had just taken a big bite out of his city’s homeless problem and was enjoying a downtown resurgence unlike any other in West/Central Florida, was getting run out of office — first by the town’s newspaper, then by voters — largely because of one very prominent issue: the future of the Tampa Bay Rays.

St. Petersburg Mayor Bill Foster insisted the team either honor its seemingly-ironclad stadium agreement or make the city an offer it couldn’t refuse. When there was no progress, Foster paid the price, suffering a rare — and convincing — loss to a challenger.

That challenger, Rick Kriseman, made the Rays’ stadium saga a differentiating issue from the start of his campaign, promising to craft an agreement with the team that allowed them to explore stadium sites in Hillsborough County. He believed (correctly) they would fail to find the funding in Tampa and ultimately come back to St. Pete (pending).

Foster’s refusal to cut the Rays a deal stemmed from his distrust of ownership, believing its end game was always Montreal (plausible) and any agreement that allowed the team to look outside St. Pete would forfeit some of the region’s only real legal leverage to keep them through 2027 (pending).

Irony No. 1 is that Foster agreed at one point the Rays should look in Hillsborough because they wouldn’t find what they’re looking for.

Irony No. 2 is that the 2013 mayoral election would reshape so much of St. Petersburg’s future — but very little of it involving the Rays.

Irony No. 3 is how the biggest divide in that heated 2013 campaign originated from a stadium issue Foster and Kriseman may not have been all that divided on in the first place; it’s now 2019 and Kriseman finds himself in the same position as Foster six years ago, asking the Rays to come to the table with an offer he can’t refuse.

The only significant difference now is Kriseman holds a stronger negotiating hand, with the Rays having squandered much of the goodwill they once had with fans who sympathized with their stadium plight.

That’s allowed Kriseman to look like the reasonable one as he holds his ground against an anxious franchise. Foster never got that courtesy, especially from the Times editorial board, which targeted (often unfairly) his protectionist approach with weekly assaults in the editorial pages.

Only time will tell if Kriseman’s 2015 deal with the Rays will one day lead to a conclusion that ensures the franchise stays in Tampa Bay for decades to come, or it may ultimately expedite their exit.

However, one thing’s for sure: very little has changed in the stadium saga these last six years, proving wrong the political influencers and stadium cheerleaders who insisted back in 2013 a stadium solution was urgently needed and St. Pete’s mayoral election should be a referendum on that single issue.





FOLLOW: Shadow of the Stadium on Twitter
FOLLOW: Shadow of the Stadium on Facebook

Sunday, August 25, 2019

Introducing the Pransky on Politics Newsletter

Introducing Pransky on Politics - an occasional newsletter that's heavy on facts, light on partisan tilt, with a moderate level of snark.

Much like its sister newsletter, published by Shadow of the Stadium, emails will be somewhat infrequent, only passing along content that will be hard to find in other places.  You can unsubscribe at any time.




Wednesday, August 21, 2019

No, the Super Bowl isn’t Going to Bring $400M-$600M to Miami

In case your summer reading list didn’t include my column on Wrestlemania’s inflated economic impact, here’s a Super Bowl-style remix: big events make ya feel good, but they don’t typically provide cities tangible returns on investment.

The Miami Herald detailed the $20 million (or more) tab Miami-area taxpayers will be picking up for Super Bowl 54 next February, from police overtime to extra city services to a $4 million straight cash payment to Dolphins owner Stephen Ross. The headline explained “Miami governments spending millions to make money and get exposure.”

The exposure claim is laughable, because if you have ever been to Miami Beach in February, you know the area doesn’t exactly have trouble attracting tourists from all over the world.

But the “make money” claim is a stretch too.

Miami City Manager Emilio Gonzalez told the Herald “we’re going to get a huge economic impact.” He then likely threw out some inflated figure in the $400-$600 million range that - to the paper’s credit - didn’t make its way into the story.

But if you ask an economist - not the marketers who typically produce the rosy economic impact reports - you’ll likely hear the true benefit to Super Bowl host cities is far less significant. “Economic impact” does not equal revenue, and impact reports always seem to conveniently forget basic economic principles.

For instance, Miami politicians will never tell you big events disrupt local economies and many people choose to spend less time and money in the city during event week. These factors negate much of the event’s impact. So while Super Bowls create business winners, they also create plenty of losers.

There’s also the fact that much of the cash hotels, restaurants, and other corporations pull in Super Bowl week gets shipped right out of town to corporate headquarters in other parts of the country. But rest assured, those Hilton employees in Dallas and Marriott employees in D.C. are greatly appreciative of those Miami subsidies!

Then there’s the public cost; the $20 million estimate in Miami may be on the low side. I wrote for WTSP last year how Super Bowl hosts need to promise endless city services "at no cost to the NFL":

We also know from a leaked 2013 NFL document the league’s crazy list of expectations require tens of millions of dollars in additional private fundraising by the host committee - real money coming out of the local community to pay for these events.

Super Bowl revenues aren’t all new revenues - much of it comes from local corporations and individuals who choose to spend money on Super Bowl events instead of charity events, other entertainment options, community investments, etc.

Between now and February, you’ll hear a lot of people who stand to make money off the Super Bowl - as well politicians simply infatuated with the game - tell you about all the intangibles the NFL will rain down on Miami next February. But it will take a lot longer for them to try and find tangible returns on investment from a game that costs taxpayers so darn much to host.




FOLLOW: Shadow of the Stadium on Twitter
FOLLOW: Shadow of the Stadium on Facebook

Friday, August 9, 2019

Florida's Sports Owners Flex Their Political Mu$cle

Stephen Ross, who has faced his fair share of criticism for the Miami Dolphins’ mediocrity over the years, found himself facing a different kind of scorn this week, criticized as a “hypocrite” for hosting a high-dollar fundraiser for President Donald Trump while also running a foundation that promotes inclusion and equality while combating racism.

Ross responded to the controversy, which included calls to boycott his companies Equinox and SoulCycle, explaining he didn’t agree with everything the president did and said, but he has always been “an active participant in the democratic process.”

The billionaire’s activity includes hundreds of campaign donations - mostly to Republicans - worth approximately $2.5 million in recent years, according to federal and state filings. Among the recipients: the Republican National Committee, Mitt Romney, and Rick Scott.

Ross’ political activity is no outlier among Florida’s wealthy pro franchise owners, according to campaign filings. A 2014 WTSP story documented nearly 100 athletes and executives from just Tampa Bay who had made contributions to candidates or political committees.

Teams and executives often donate to the majority party to advance their state and local interests. But at the national level, donations often reflect individuals’ ideology.

Jacksonville Jaguars owner Shahid Khan has become a reliable Republican donor over the last decade, contributing $250,000 to Rick Scott’s Let's Get to Work PAC, $175,000 to Lenny Curry’s Build Something That Lasts PAC, and more than $100,000 to support Mitt Romney and other national Republican efforts in 2012.

Khan has also given $500,000 to the Citizens for the Truth About Amendment 3 PAC, which failed to defeat a 2018 referendum that restricted gambling expansion in Florida, as well as a pair of donations to American Idol star-turned-Democrat Congressional candidate Clay Aiken in 2014.

The Glazer family, which owns the Tampa Bay Buccaneers, has spread its contributions fairly evenly across the two major parties over the years. It supported Virginia’s former Republican governor and senator George Allen with tens of thousands of dollars, as well as Republican-turned-Independent-turned-Democrat Charlie Crist and other left-leaning politicians and committees. The Buccaneers have also donated heavily to transit-related political committees in both Hillsborough and Pinellas counties.

One of the Bucs’ chairmen, Edward Glazer, has donated more than $185,000 to the Republican National Committee since May 2016 as well as $55,400 more to Donald Trump’s 2016 presidential efforts. He also cut $5,400 in checks to Hillary Clinton’s campaign on the same day he donated to the RNC in May 2016.

Miami Heat owner Micky Arison has donated heavily to both parties, including a $500,000 check to Jeb Bush’s PAC in 2015. His donations tilted to the right historically, but have shifted back toward the left since 2016.

Last year, Arison donated $100,000 to the gubernatorial campaign of former Miami Beach Mayor Philip Levine, a Democrat. In 2019, he’s stroked checks in support of Democratic Congressional candidates Elijah Cummings, Stephanie Murphy, Debbie Wasserman Schultz, David Price, and Sean Maloney. He’s also donated to moderate Republican Senator Lisa Murkowski and Florida Republicans Marco Rubio and Vern Buchanan.

Florida Panthers owner Vincent Viola was nominated - but never confirmed - as President Trump’s nominee for Secretary of the Army. However, his political donations appear to be virtually non-existent in recent years. Prior to 2015, he had a history of donating to both Democratic and Republican committees.

Orlando Magic owner Dan DeVos has been a big backer of Orlando’s Democratic Mayor, Buddy Dyer, but has contributed the bulk of his $1 million-plus in donations since 2015 to conservative candidates and causes, including Florida governors Rick Scott and Ron DeSantis, as well as dozens of Republican House and Senate candidates.

Tampa Bay Lightning owner Jeff Vinik has been contributing to Republican candidates and committees for more than 20 years, with some of the biggest contributions coming recently, including more than $78,000 to Mitt Romney’s 2012 presidential bid, $200,000 to Rick Scott's PAC in 2015, and another $42,000 to Scott's Senate campaign in 2018.

Tampa Bay Rays owner Stu Sternberg has supported local and state Republicans in recent years as his efforts to land stadium subsidies have increased, but he has historically favored Democratic candidates. Sternberg has donated to Democratic Congressmembers Kathy Castor and Charlie Crist, St. Petersburg Mayor Rick Kriseman, President Barack Obama, gubernatorial hopeful Andrew Gillum, and senate candidate Patrick Murphy.

The least-political franchise owner in Florida appears to be the Marlins’ Derek Jeter, who has not recorded a single state or federal campaign contribution.

The above figures do not include donations from the owners’ businesses, which add up to millions of dollars more in contributions. That’s on top of the millions of dollars Florida sports organizations spend on lobbying Tallahassee.









FOLLOW: Shadow of the Stadium on Twitter
FOLLOW: Shadow of the Stadium on Facebook

Thursday, August 8, 2019

Even Without MLB, Hagan Wants Tax Dollars for Ybor Stadium & Development

Hillsborough Commissioner Ken Hagan told his counterparts Wednesday he wants to move forward with plans for a new Tampa stadium in Ybor City -- even without 81 Tampa Bay Rays home games.

County insiders say the commissioner is so committed to a new publicly-subsidized ballpark he wants to build a fourth Hillsborough County stadium even if the Rays aren’t ultimately a part of it.

Rays owner Stuart Sternberg announced a proposal in June to split the team’s regular season schedule between Florida and Montreal since he saw no financially-feasible full-season stadium options in Tampa Bay. After three years of negotiating with Hillsborough County, Sternberg indicated the region just never come close to meeting his expectations.

Hagan said Wednesday he thought the county should move forward with creating a taxable entertainment district in the growing Ybor area to fund a future stadium that may - or may not - play host to half a season of Major League Baseball games. Food, drinks, and property within the district could all be taxed at a higher rate to help fund the facility.

The commissioner has also said the ballpark could draw from tourist taxes, federal dollars, and property taxes collected through community redevelopment areas (CRA), also known as TIFs.

“This would not necessarily be created for the purpose of being the Rays’ next new home, but would certainly put us in an enviable position when those discussions occur,” Hagan said.

The “if you build it, they will come” approach on a Major League Baseball park is a familiar one in Tampa Bay; the less-than-ideal location of Tropicana Field was due to St. Petersburg’s rush to build a baseball stadium in 1990 before it had the commitment of an expansion franchise. It wasn’t until 1998 that MLB granted one to the region.

However, Hillsborough County is already paying for three other professional stadiums and doesn’t appear have existing tax revenues to fund a fourth.

So Hagan is looking at creating new public revenue streams, even though he told the board Wednesday “no new public money” would be used to fund a stadium. He indicated it would be smaller than the Rays’ estimated $892 million price tag, and could play home to baseball, soccer, and other events.

Nine years ago, Hagan repeatedly said he didn’t support any public funds for a new stadium, but his stance changed over the years as it became clear a new ballpark for the Rays would require substantial public money.

The desire to subsidize Ybor City

When Sternberg announced the Rays were no longer considering an Ybor City stadium in late 2018 after three years of negotiations, several Hillsborough commissioners who had supported the talks said it was time to move on.

But Hagan wanted to continue the Ybor efforts.

WTSP revealed how he shifted planning resources - and expenses - from the county center to the Tampa Sports Authority (TSA), where he had more board support. The agency is funded in part by county and city tax dollars.

For the last eight months, Hagan and outside attorney Irwin Raij have played a key role in continuing to try and make Ybor stadium subsidies happen - even if a half-season’s worth of games was the best Hillsborough could hope for, and even as the county is currently prohibited from negotiating with the Rays.

Tax breaks and other public subsidies are typically used to stimulate areas that need government help to revitalize. But Ybor City has enjoyed a revival on its own in recent years and wasn’t even included in an initial list of federally-designated “Opportunity Zones” eligible for development-related tax breaks. The city and county later worked to get the Rays’ desired ballpark area included.

However, Hagan’s ties to Ybor go beyond baseball; last November, WTSP-TV reported secret conversations he was having with Ybor City developers who would later contribute to his campaign. When he was asked for public records related to the ballpark planning, he failed to turn them over.

Hagan told the commission on Wednesday the primary goal of the new stadium would be to keep the Rays in Tampa Bay for the long-term and he wasn’t “married” to Ybor City: “we...would consider other sites."

But it doesn’t appear the county has performed any kind of study or analysis regarding the best use of public subsidies or the best way to accomplish its goals in Ybor City. Two commissioners told Florida Politics that Hagan has been driving the conversation on his own.

Hagan has refused to respond to Florida Politics’ questions since the start of the year. And even though Florida Politics has been asking the TSA about Raij’s role and Ybor stadium plans since May, the agency’s taxpayer-paid vice president of communications has refused to communicate on the topic.

St. Petersburg investigating
St. Petersburg city officials confirm that the city is once again investigating whether the Rays have violated their contract by talking to other municipalities about leaving Tropicana Field prior to the expiration of the existing deal in December 2027.

Raij told county commissioners Wednesday he had spoken with the Rays but didn’t cross the line of tortious interference because he wasn’t “negotiating” with the team.

“We can speak to the Rays; we can’t negotiate with the Rays, and there is a difference,” Raij said, adding he was not currently engaged with the team.

A spokesman for St. Petersburg Mayor Rick Kriseman said the city’s legal department is reviewing all of the comments made at Wednesday’s meeting.

The city also conducted a lengthy legal review following Sternberg’s June comments and a Florida Politics story that revealed the team had been talking to Montreal about shifting home games away from Tropicana Field prior to 2027.

Kriseman and Sternberg have met twice in the last month to discuss the team’s split-season pitch, but little progress has been evident, as the city expects the team to make concessions of its own in exchange for the loosening of its contract.

Raij, who has billed the county nearly a million dollars for his services since since 2014, said Kriseman has not been willing to allow Hillsborough to have its own formal meetings with the team since its three-year negotiating window expired last December.

Hillsborough Commissioner Mariella Smith warned Wednesday the county is “threading a needle between landmines” with regards to legal exposure as it continues to talk to the Rays without permission from St. Petersburg. Commissioner Pat Kemp also expressed concern about St. Petersburg’s threat of tortious interference if Hillsborough continues to talk to the Rays without permission.

County Commission Chair Les Miller repeatedly defended the Hagan and Raij efforts, while Hagan called St. Pete’s warnings “bogus threats,” saying “there is no risk” to talking with the Rays as long as they don’t negotiate about a specific stadium on a specific site.

Hagan also sent more shots across the bay toward Kriseman, criticizing him as an obstructionist.

But a spokesman for Kriseman said the commissioner was “failing to remember Mayor Kriseman's regional leadership on this issue” that granted the Rays a three-year window to talk to Hillsborough in the first place back in 2015.






FOLLOW: Shadow of the Stadium on Twitter
FOLLOW: Shadow of the Stadium on Facebook