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Pinellas County's 'tourist tax' supports beaches and baseball. Is there enough set aside for both?

Ahead of pivotal vote, Pinellas County's administrator says they have "sufficient reserves" for beach nourishment and a new stadium, but there are still questions.

PINELLAS COUNTY, Fla. — Beaches and baseball, both Bs are immensely popular in the Tampa Bay area and both will need significant funding to be preserved for future generations in Pinellas County as commissioners face a major decision in front of them.

RELATED: Rays stadium deal hinges on county approval, but commissioners still have questions

On Monday, the work to restore and renourish a large stretch of the popular Pass-A-Grille Beach got underway, part of necessary maintenance across shorelines that have seen significant loss from erosion and storms.

RELATED: After delays, Pass-a-Grille beach nourishment project resumes — here's what to expect

“Without regular beach nourishment, these beaches would erode back and continue to erode back and we wouldn't have a beach,” explained John Bishop Ph.D., the county’s coastal management coordinator.

Bishop says the roughly $6 million project is essential.

“Both for its environmental and protective benefits, because it does protect all of these homes, the streets, the infrastructure, but it also is a main economic driver of Pinellas County,” he said.

With or without federal help, Pinellas County administrative leaders say they have plenty of money generated from the Tourist Development Tax (TDT) and potential revenue from the state to continue nourishing beaches for years to come.

The TDT is a six-percent tax on hotel and rental rooms in the county. In 2023 alone it generated a record $98 million dollars. 

By law, 40% of the funding can be used on tourism capital improvement projects, like beach restoration, museums and sports stadiums.

On Tuesday, county commissioners will consider spending more than $300 million from the fund to help build a new state-of-the-art ballpark for the Tampa Bay Rays. 

It's part of a proposed $6.5 billion redevelopment in St. Petersburg’s Historic Gas Plant District, which just got the green light from city council.

“With this deal we don’t feel as though we’re putting that beach nourishment and the protection of our beaches and residents and that tourism at risk,” said Pinellas County Administrator Barry Burton at a workshop meeting Thursday. 

Burton explains the county ran a model that would require them paying for all the beach nourishment on their own. 

"We had more than enough money to be able do that, and still fund up all of our capital obligations and have money for unpredictable storms," Burton added. 

RELATED: Work begins to restore 22 sand groins on Madeira Beach

According to next year’s budget proposal, the county is anticipating having $264 million in TDT reserves funding. The little more than $100 million for capital projects, is not enough to cover the stadium cost up front.

If Pinellas County’s Board of County Commissioners approves the project, they will also have to work through how to pay for it, whether through bonding or cash, and a timeline for when payments are made.

Supporters say the project would be an economic driver and bring-in hundreds of millions in new tax revenue for the county. 

Ahead of a tentatively scheduled vote, some commissioners still have questions on whether the county can afford to pay that much for the stadium, especially if storm-related emergencies take greater, unexpected tolls on the coast.

RELATED: St. Petersburg City Council gives approval to Rays stadium project

“Our [tourist development funds] we have gone through this exercise before and we're going to bring it back on Tuesday to have more discussion about what that really looks like,” said Pinellas County Commissioner Dave Eggers.

“Because right now, it's our safety net, when we have issues that come in the form of storms, and we have money for the normal beach nourishment process, but who knows, is there any [for an emergency],” Eggers added.

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