Make that $1-million a year in a proposal that would relieve the team of a property tax while giving it control of a surcharge.
By BILL VARIAN
Published November 30, 2004
TAMPA - The Tampa Bay Lightning would receive about $1-million a year from local government but would have to stay at its current location for seven years, under a plan being considered by city and county officials.
If the team left prematurely, it would have to pay back much of the money it received through the agreement.
The proposal comes amid uncertainty for both the NHL, whose players are on strike, and the world champion Lightning, which has been a money-losing franchise.
The Lightning is pushing to get rid of an approximate $630,000 annual property tax bill it pays on the St. Pete Times Forum, where it plays its home games. The team also wants control of about $350,000 raised each year from a county surcharge on tickets.
The hockey team says it simply wants the same deal as Tampa's other professional sports teams, the Buccaneers and Yankees, which pay little or no property taxes on their stadiums.
"We're just looking for consistent treatment," said Sean Henry, the Lightning's chief operating officer.
On Monday, the Lightning pitched its proposal to the Tampa Sports Authority, which owns the arena that is run by the team.
The plan must be approved by Tampa and Hillsborough County. The deal has the backing of Tampa Mayor Pam Iorio, whose government coffers would bear most of the financial hit from such a move.
"I support the transfer because I believe we must have consistent and equitable treatment for the significant sports franchises located in our community," Iorio wrote in her endorsement of the plan.
Specifically, the Lightning wants the Hillsborough County government to take over ownership of the Times Forum. That would make the building immune from property taxes and essentially nullify the Lightning's roughly $630,000 annual property tax bill.
Additionally, the team wants control of a 50-cent surcharge the county tacks on to many tickets sold to the Times Forum, which would net the team roughly $350,000 a year. The surcharge would be used for upkeep of the 7-year-old arena.
Total cost to taxpayers: nearly $1-million a year.
Henry said the proposal also would return the team to its early days before a 2001 Florida Supreme Court ruling made many sports arenas taxable.
"Just revert it to where we were," Henry said.
In return, the team says it will commit to stay in Tampa for seven years and will pay back its tax savings if it leaves sooner.
The Lightning is seeking a deal before the end of December to avoid a new tax year.
Sports Authority members offered no commitment Monday, saying they want to hear from the city and county.
Hillsborough County commissioners will hear the proposal Wednesday. Lightning officials hope the commissioners will take action when they meet again Dec. 15.
The pitch comes nearly four years after the Florida Supreme Court ruled that sports arenas owned by some types of governments and leased to private groups are not immune from taxes. The ruling didn't apply to counties that own sports arenas.
So a year ago, Hillsborough commissioners agreed to take over ownership of most of Raymond James Stadium, home of the Tampa Bay Buccaneers. The move did away with the property tax bill there, which the city and county were paying.
Legends Field, where the New York Yankees play spring training games, was already located on county land.
Across the bay, Pinellas commissioners agreed in September 2002 to take over Tropicana Field, home of the Tampa Bay Devil Rays, from the city of St. Petersburg. The move saved city taxpayers more than $1.4-million a year. The Devil Rays weren't paying the tax because their contract with the city didn't require them to.
Now the Lightning wants what they say will be at least similar treatment. Unlike the prosperous Buccaneers and Yankees, the Lightning claims to be losing money in a league where other teams are in similar straits.
When the NHL's collective bargaining agreement expired in September, owners locked out players in a dispute over salaries. Before their championship run last season, the Lightning claimed to be facing particularly hard times, losing roughly $11-million annually before posting a slight profit last year.
The tax cut proposal is part of the team's overall strategy to become financially viable, Henry said.
The county would not directly lose money if the property tax part of the proposal is approved. The Times Forum is located in a special taxing district and the county currently doesn't get the money.
Money raised from the 50-cent ticket surcharge is supposed to pay off part of the debt undertaken by county government to build the Times Forum. But the $350,000 annually raised isn't coming close.
County debt management director Mike Merrill said he believes the debt can be refinanced next year, saving the county more than it gets from the surcharge.
During Monday's meeting, Sports Authority member Vincent Marchetti asked why the team wasn't willing to make a longer commitment to Tampa, since taxpayers will be paying off the debt used to build the Times Forum until 2026.
The Buccaneers, for instance, are committed to stay in Tampa until their stadium is paid off.
But the Lightning could leave Tampa now with almost no penalty, and the team has suggested it may if no deal happens. Henry noted after the meeting that, unlike the Buccaneers, the Lightning paid nearly half the construction costs of the Times Forum.
