Straz Center's major redevelopment project faces delays
By Henry Queen
Tampa Bay Business Journal
Published: Aug 25, 2023

The Straz Center for the Performing Arts in downtown Tampa is expected to request an extension to fulfill contractual requirements with the city for its major redevelopment project.

The city’s downtown Community Redevelopment Agency committed $25 million in 2021 to an $80 million project meant to transform the waterfront property with an expanded event and outdoor space and a public rooftop terrace overlooking the Riverwalk. CRAs are state-designated areas that retain all tax money generated within their boundaries to fund future development.

“Money is a little tight to come by, so there’s some extensions we’re looking at. ... The $25 million [from the CRA] is locked in,” Jeff Burton, manager of the downtown CRA, said during a meeting on Aug. 17. “All we have to do is wait for the Straz to meet the requirements of the contract.”

Councilman Bill Carlson took issue with the implication that the Straz hasn’t met its end of the bargain to acquire matching funds, calling it “absurd.” The Straz is expected to ask the city for a “small, minor alteration to the schedule” as it faces inflation and supply chain issues, Carlson said at the CRA meeting.

“What I did not want anybody to have is the impression that somehow they have not kept their promises,” Carlson said, “because they have.”

The redevelopment is projected to cost $80 million as part of a $100 million fundraising effort that includes $20 million to boost endowment. A project update will come to the CRA board in October, according to Tampa Deputy Administrator of Development and Economic Opportunity Alis Drumgo.

Paul Bilyeu, spokesperson for the Straz Center, told the Tampa Bay Business Journal that there has been an inflation-induced slowdown, noting that $80 million bought a lot more two years ago than it does now. Leaders at the performing arts venue are in the process of seeking major corporate donors before going to the general public for smaller donations, he said.

“We are moving along,” Bilyeu said.

Bilyeu didn’t immediately respond to questions about whether the Straz had submitted a final plan for the project, a construction budget, a fundraising plan or a community benefits agreement. All must be met by Oct. 1, according to the 41-page agreement between the Straz and the CRA. It also requires the Straz to provide evidence that it has $25 million of cash on hand along with evidence that it has loan agreements from one or more financial institutions to cover the rest of the costs before construction can begin.

None of the CRA’s money can be spent until the conditions are met. The agreement had spelled out an expectation to spend the money incrementally from fiscal 2023 through 2027. Fiscal 2023 ends in about a month.

The state of the downtown CRA

Carlson has expressed interest in ending or capping both the downtown and Channel district CRAs. Board members voted against his motion in 2020 to sunset the Channel district CRA. He said because he didn’t have the votes to cap the downtown CRA, he has pushed to “invest in things that would help the whole city,” referring to the arts.

“I say this over and over again: The rest of the city that’s not in the CRA is subsidizing the CRAs,” Carlson said. “So a lot of it is New Tampa [and] South Tampa. ... If we were able to take money out, we could use it in a different way. We could still use it on these projects if we want. But instead of being forced to use it in a geographic area, we could weigh the projects based on the entire city.”

In a statement to the Business Journal, Carlson emphasized the importance of the Straz.

“Supporting the arts means supporting high-wage jobs and technology jobs in our community,” he said. “In the past, CRA money was used to subsidize developers, which was unfair and anti-competitive. Now we’re spending it on assets owned by the city that benefit the entire city.”

Councilman Alan Clendenin agreed with Carlson that areas outside the CRA are at a disadvantage, while councilwomen Lynn Hurtak and Gwen Henderson said there are still worthy projects within the downtown CRA.

“You say there’s no slum and blight in downtown,” Henderson said, talking to Carlson at an Aug. 14 council meeting. “Downtown is really nice, but we did purchase the Army-Navy store. It’s a wonderful plot of land on Tampa Street that the CRA purchased. Can you imagine affordable housing downtown for people who need it who work down here? I wouldn’t be so fast to sunset the CRA in downtown.”

Councilman Luis Viera cast the sole dissenting vote against the Straz Center’s $25 million request in October 2021. He said then that the money could be used on other items like parks, the TECO Line Streetcar and affordable housing.

John Dingfelder, who eventually resigned from his seat on city council as part of an agreement to settle a public records lawsuit, confided with then-CEO of the Straz Center, Judy Lisi, via text message in September 2021 to offer advice on how to approach the city for $25 million.

In late 2020, the CRA was prepared to budget $15 million to the Straz before directing staff to study if that number could be increased.

Below is a list of entities the downtown CRA has committed money to through 2033:

Strategic Property Partners, $37.35 million

Tampa Convention Center, $25.3 million

Straz Center, $25 million

Tampa Museum of Art, $15 million

Tampa Theatre, $14 million