BEXAR COUNTY, Texas – Bexar County voters will have their first — and likely only — chance to vote on a new Spurs arena in the Nov. 4 election.
Commissioners voted 4-1 on Tuesday to ask voters whether to raise the hotel portion of the county’s venue tax to 2%, which could help funnel up to $311 million toward a downtown NBA arena in Hemisfair. The county has offered to pay that amount or up to 25% of the arena’s cost, whichever is lower.
Bexar County Precinct 3 Commissioner Grant Moody was the lone “no” vote, saying he could not support a tax increase. Others on the commissioners court, though, have framed it as a tax on visitors, rather than locals.
Spurs Sports and Entertainment has offered to put $500 million toward the arena and cover any cost overruns. The City of San Antonio is considering a variety of public funding sources to kick in between $350 million and $500 million, none of which would require voter approval.
The arena’s total price tag could reach up to $1.5 billion.
Voters will be asked separately about raising the tax to help fund renovations and upgrades to the team’s current home, the Frost Bank Center, as well as the surrounding Freeman Coliseum and coliseum grounds.
The heads of the Freeman Coliseum and the San Antonio Stock Show and Rodeo have said they hope to generate more year-round activity, such as Olympic event horse shows, horse auctions, an annual county fair or expanded expositions.
County voters passed the current venue tax — split between a 5% tax on short-term car rentals and a 1.75% hotel tax — in 1999 to fund the construction of the Spurs’ current home.
In 2008, voters agreed to use the tax for river improvements, sports facilities, performing arts facilities and community arenas.
The county appeared to originally be set to send less money to the arena. However, the latest numbers presented by Bexar County Manager David Smith on Tuesday showed raising the tax could create another $503 million in capacity.
The estimated $45 million price tag to renovate the Frost Bank Center and $195 million for improving the Freeman Coliseum grounds could be partially offset by $48 million in venue tax revenue for the county.
That, Smith said, still leaves up to $311 million for the county to spend on the arena.
The San Antonio City Council is scheduled to have further discussions about the larger sports and entertainment district, also known as Project Marvel, on Wednesday.
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