SAN ANTONIO – The chief legal officer and general counsel for Spurs Sports and Entertainment outlined the proposed funding structure for a new downtown San Antonio arena ahead of a key City Council vote Thursday and a public vote in November.
Bobby Perez described the funding as visitor-funded, clarifying it will not come from San Antonio residents.
“The funding for the arena is visitor funded based and will not be funded with San Antonio residents,” Perez said. “Visitor funds from the state of Texas can’t be used for streets, roads, sidewalks, police or fire. It can only be used for venues like the arena.”
Regarding concerns raised by Mayor Gina Ortiz Jones about the project potentially exceeding $489 million, Perez said the term sheet caps the city’s visitor funds at $489 million and the county’s at $311 million.
Any additional funds needed to complete the arena would come from the Spurs. The organization has committed at least $500 million for the arena costs and the construction overages.
Perez said Spurs Sports and Entertainment, city and county staff have worked on the term sheet framework for months, delivering a concept in early May and finalizing it recently.
“We’re willing to make that over $2 billion investment into this project,” he added.
The draft term sheet increases Spurs Sports and Entertainment’s community benefit package to $75 million and includes a lengthy lease agreement.
“The political leaders, city council, local government corporation, they can decide how to allocate that money to those areas that’s needed most,” Perez said.
Perez highlighted that the lease agreement includes a non-relocation clause for 30 years and called downtown the Spurs’ “new home.”
Addressing Jones’ concerns about the timeline, Perez explained that the construction timeframe is around 60 months.
He emphasized the importance of informing voters ahead of early voting and the Nov. 4 county election.
“The ultimate decider is the citizens of San Antonio and Bexar County,” he said. “We would like to give it to them and ask the council to support that term sheet and that way we can put all the information out to the voter who is the ultimate decider on this issue and that’s what we’re excited about.”
Perez also stated that the Spurs will actively reach out to voters, neighborhood associations, community groups, and churches to garner support for the effort.
On Thursday, two items related to Project Marvel will be voted on by City Council.
The first item is a resolution stating the City Council will not move forward on a proposed term sheet with the Spurs for a new arena downtown until the city receives an independent economic impact study.
The second item is a resolution directing City Manager Erik Walsh to move forward and complete negotiations with the Spurs on the terms for the new proposed arena.
Jones has continued to push for the city to hold off on approving a non-binding set of terms for funding the $1.3 billion arena until it has an “independent economic impact study” and meetings in each council district to get community feedback.
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