SUBJECT/RECOMMENDATION:
Title
Approve a Term Sheet between the City of Clearwater (City), Pinellas County (County), and the Phillies Florida LLC (Phillies) for the redevelopment and improvements to BayCare Ballpark Stadium Facility and authorize the appropriate officials to execute same. (consent)
Body
SUMMARY:
Since 1947 the City and the Philadelphia Phillies have had a long-standing partnership to make Clearwater the Major League Baseball (MLB) Spring Training home for the Philadelphia Phillies and the Minor League Baseball home for the Clearwater Threshers. The current lease/use agreement expires in 2028.
Staff have been in discussions with the Phillies and other partners to define the terms and conditions acceptable to all parties that would provide the framework to craft multiple agreements that would ensure the City and Phillies partnership reaches the 100-year milestone. The terms include capital investments that will improve Baycare Ballpark and Carpenter Complex intended to improve the fan experience and ensure the facilities meet MLB standards.
The main components of the Term Sheet include:
Baycare Ballpark
• Renovations to approximately 50,000 square feet of the home and visitor areas providing proper amenities for male and female coaches, staff and players, and bringing the amenities in compliance with Major League Baseball and Player Development License standards.
• Improvements and renovations to the left field concourse, concession stands and fan amenities on an expanded concourse.
• Renovating and enclosing suite level walkway to address operational needs.
• Expansion of retail store to improve pedestrian flow, fan access and fan experience.
• Increase restroom facilities to modernize facility and improve fan experience.
• Construct a 3-story expansion in the Southwest corner of the stadium to support technical needs, maintenance and cleaning operations, improve ADA and fan convenience capabilities, and kitchen expansion to meet current operational needs.
• Replacement of stadium seating.
• Replacement of stadium lighting with modern LED field lighting.
• Construct a 2-story Center Field Building to add additional restrooms and elevator to service new fan observation deck.
• Refreshing suites add creating a climate controlled “First Base Club.”
• Improve and update the primary fan entrance on the west side of the stadium.
• Improvements will increase capacity of the stadium by 700 patrons.
Carpenter Complex
• Construct a baseball lab inside of the Montgomery Building
• Updating the 17,000 square foot Owens Building
• Replace the 3,700 square-foot Groundskeeping Building and needed field maintenance storage.
• Make field improvements.
• Improvements and upgrades to underground drainage and water retention and diversion.
Additional commitments include improvements to the overall site, service road, flood mitigation, parking lot, and adding a site generator.
The collective total of capital improvements is $205 million and includes some projects that have recently been completed or are currently in progress. Funding for the project is proposed to come from the following sources:
• City of Clearwater - $30 million
• Pinellas County - $85 million
• State of Florida Capital Contribution - $20 million over 20 years with estimated present value of $15 million
• Phillies - $75 million
Should the State of Florida not approve the Retained Spring Training Facility Funding or the anticipated State Capital Contribution, the parties agree to renegotiate modifications to the scope of the project or elements of the project budget. Phillies are responsible for cost overruns of the capital projects, and any overall project savings will be shared proportionally with the City, County, and Phillies.
The maintenance and repair responsibilities remain the same as what is currently in place but are included in the term sheet for transparency. The City will contribute $85,000 for field supplies in the initial year, and each year thereafter adjusting the amount by the Consumer Price Index.
The City and Phillies would enter into a single lease/use agreement for Baycare Ballpark and Carpenter Complex that would begin on January 1, 2028, and expire on December 31, 2047, with two automatic 5-year renewals. As part of that lease/use agreement, the Phillies will provide, in the initial year, an annual payment of $350,000 for the use of Baycare Ballpark and $200,000 for the use of Carpenter Complex; and each year thereafter, adjusted annually by the Consumer Price Index (CPI). Additionally, the Phillies will pay the City $1.20 per MLB Spring Training ticket sold each year.
Council approval of these terms will allow all parties to draft the formal agreements which would be presented to Council for formal approval at a future meeting.
APPROPRIATION CODE AND AMOUNT:
The City portion of funds included in the term sheet is proposed to be funded by the following funding sources or Council actions:
• Penny for Pinellas funding of $10.55MM available in capital project 315-C2001.
• An additional $6MM of Penny is budgeted for fiscal year 2027.
• Council will be requested to approve a $12MM interfund loan from the Central Insurance Fund to the General Fund for additional funding; for a 20-year term @ 0% interest.
• Council would need to approve the use of $1.45MM from General Fund reserves.
USE OF RESERVE FUNDS:
Funding for this agreement will be provided by a mid-year budget amendment allocating General Fund reserves in the amount of $1,450,000. Inclusive of this item if approved, a net total of $1,664,262 of General Fund reserves has been used to date to fund expenditures in the 2025/26 operating budget. The remaining balance in General Fund reserves after the 8.5% reserve is approximately $54.4 million, or 24.3% of the current General Fund operating budget.
STRATEGIC PRIORITY:
2.3 Promote Clearwater as a premier destination for entertainment, cultural experiences, tourism, and national sporting events.
2.2 Cultivate a business climate that welcomes entrepreneurship, inspires local investment, supports Eco-friendly enterprises, and encourages high-quality job growth.
2.1 Strengthen public-private initiatives that attract, develop, and retain diversified business sectors.
