Analysis: If Project Marvel is as good a deal as Luby's Luann Platter, let the numbers speak for themselves

A “Vote Yes” on Project Marvel sign, paid for by San Antonio Spurs LLC, sits in a yard north of downtown. Credit: Michael Karlis

Project Marvel is as good a deal as a Luann Platter, the famed meat-and-two sides lunch plate Luby’s sells to budget-minded diners.

Or so claims a political mailer paid for by San Antonio Spurs LLC and delivered to San Antonio residents over the weekend.

The same mailer also asserts that local taxpayers will outlay “ni un centavo” for the new arena and that the Spurs are putting up $2.1 billion for the project.

The truth, of course, is un poco más complicado.

Let’s run it down.

Part of the proposed $1.3 billion downtown arena for San Antonio would be paid for by property taxes within the Hemisfair Tax Increment Reinvestment Zone (TIRZ), which includes both small businesses and some residential properties. So, looks like those entities will be digging into their pockets.

A map shows the Hemisfair Tax Reinvestment Increment Zone in purple. Credit: City of San Antonio

An additional $311 million in funding for the arena would come from a 2% hike in Bexar County’s visitor tax, assuming voters approve the increase in November.

Of course, if Bexar County residents need to rent a car or book a hotel room for the night, a portion of that cost will also go towards the new venue. In other words: despite its name, it’s not strictly hitting visitors.

Nothing in life is free.

Beyond that, the claim that the Spurs are on the hook to pay up $2.1 billion for the project also involves some fanciful math.

Under the proposal currently on the table, Spurs Sports & Entertainment is offering to put up $500 million for the arena. However, another $1.4 billion in unspecified surrounding economic development offered up by the franchisee isn’t strictly coming from its coffers.

Instead, the Spurs agreed to “facilitate” that development, meaning a sizable portion would likely come from other businesses or entities. Experts also caution there’s not much holding the team’s ownership to that agreement — at least, how the current term sheet is written.

If the Spurs’ ownership want to rally the team’s fans and pass a term sheet in November, those in charge of its outreach should consider being more transparent with the public about just what the Silver and Black are offering up and what the implications are for taxpayers.

At least with a Luann Platter, folks know exactly what they’re getting for their hard-earned lunch money.

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Analysis: If Project Marvel is as good a deal as Luby’s Luann Platter, let the numbers speak for themselves

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