Times Forum ticket fee holds firm

County commissioners delay a surcharge increase but watch for word on the arena operator's $3.3-million property tax bill.

By BILL VARIAN, Times Staff Writer
© St. Petersburg Times
published September 19, 2002

TAMPA -- As expected, Hillsborough County commissioners voted 6-0 Wednesday to postpone an automatic increase in the ticket surcharge for St. Pete Times Forum events from 75 cents to $3.75.

A decision on whether to impose the increase likely won't be made until at least next June.

In the meantime, commissioners will await a court decision on the arena operator's challenge of its $3.3-million property tax bill, a case expected to be heard in March. And county staffers will work with the operator, Palace Sports & Entertainment, on a possible restructuring of the deal that governs who pays what and for how long at the Times Forum.

Proceeds from the county's 50-cent share of the current surcharge are supposed to help pay $1.5-million of the annual bonded debt used to help build the Times Forum six years ago. But in the past few years, it has brought in less than a third of that amount, forcing the county to use reserves from part of the tourist tax to make up the difference.

Under an agreement between the county and Palace Sports, the surcharge is supposed to increase to an amount that would bridge the difference by Oct. 1.

That would be $3, which would lift the total surcharge to $3.75.

But Palace Sports officials contend that such an increase would chase away customers and, more important, low-cost acts such as the circus.

A consultant concluded that Palace Sports lost about $21-million in 2001, so it can ill afford the lost revenue. That's why the property tax suit is important. There's a $2.25-million disagreement between what Palace Sports and the property appraiser's office says the company owes on taxes.

Palace Sports is hoping to renegotiate its contract with the county, city of Tampa and Tampa Sports Authority, which owns the Times Forum. The county has considerable incentive. Palace Sports has a provision in its contract that allows the Lightning to pull out of town with little financial penalty if attendance at games lags below 80 percent for two consecutive years.

The team came close to that level last year.

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