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Don't tell us how to spend our tax, Tampa tells county

The city formally objects to a Hillsborough proposal to spend more tourist tax dollars on professional sports arenas.

By BILL VARIAN
Published May 2, 2006

TAMPA - The city of Tampa put its concerns about a Hillsborough County proposal to spend $70.5-million in future tourist tax dollars on pro sporting arena renovations in writing Monday.

In the letter to County Administrator Pat Bean, City Attorney David Smith particularly objects to the unilateral way the county is making the pitch, because it involves Tampa government kicking in money to the Tampa Bay Lightning. He said if the County Commission approves the measure when it meets Wednesday, the city won't recognize it.

"Please know that any resolution unilaterally passed by the commission that contains language requiring future city actions or financial contributions on joint projects will not be recognized by the city," Smith wrote. "We need to work together for the good of all of our residents."

A portion of tourist tax dollars, an added tax on room rates for people who stay in hotels, helps pay off loans that were used to build the St. Pete Times Forum, Raymond James Stadium and Legends Field. The tax now brings in more money than is needed to cover the annual debt payments.

So the county proposes to take on another $70.5-million in debt for arena renovations and pay it off over 30 years with the extra money now coming in from the tourist tax. The Lightning hockey team would get up to $35-million to renovate the Times Forum; the Tampa Sports Authority would get up to $28-million for work on Raymond James Stadium; and the New York Yankees would get $7.5-million to upgrade Legends Field.

The city is troubled by all three parts.

In return for its share, the Lightning would commit to remain at the Times Forum for at least 10 years, but the deal also is contingent on the city committing by May 2007 to provide the team an unspecified amount of additional money.

Money given to the Sports Authority would cover the county's obligation to pay for two-thirds of the cost of future renovations at Raymond James, but not the city's one-third obligation. The city notes that 80 percent of the county's hotel rooms are located in Tampa, though the county collects the tourist tax.

Finally, Smith says he's not aware of any public request for money from the Yankees involving Legends Field, and notes that local government isn't obligated to pay the team anything for stadium upgrades.

Smith acknowledges that spending some of the tourist tax money on "reasonable" renovations at sports arenas is appropriate. But he said the city has needs, too - that the tax could pay for replacing the roof and air conditioning and making other upgrades at the Tampa Convention Center.

Bean did not immediately return a phone call Monday evening seeking comment. Commission Chairman Jim Norman, who acknowledged coming up with the idea, said he's simply trying to ensure that county property taxpayers aren't stuck with paying for the future upkeep of the three arenas, which are owned by the county.

He said he wants to ensure the Lightning, which claims to be losing millions annually, stays in the Times Forum long-term in exchange for the cash.

"Whatever happens there, if we don't lock them down, we are the owner," Norman said. "Then we have these bills without a key tenant. It looked like a big win-win if I could get them to say "yes' to a long-term commitment."

[Last modified May 2, 2006, 01:55:38]