SAN ANTONIO \u2013 As Mayor Gina Ortiz Jones tried to pump the brakes on a city funding deal for a new downtown NBA arena for the San Antonio Spurs, a majority of her colleagues on the dais urged city staff to keep it moving.<\/p>\n
The city has been considering financing up to $500 million of the arena\u2019s total price tag, which is still unknown but could run up to $1.5 billion. During a marathon meeting Wednesday, Jones said she didn\u2019t believe the information the city council had seen was enough to complete their \u201cdue diligence.\u201d<\/p>\n
\u201cSo I think we need to take a strategic pause on this entire effort,\u201c Jones said. \u201dAnd we need (to) lay out not only the cost and benefit of the Spurs arena, but of this entire project.<\/p>\n
\u201cI understand information, you know, has previously been shared with other councils, but there\u2019s a new council. And there\u2019s much more data and a lot of data that is fast changing and deserves a full review \u2014 and a full independent review.”<\/p>\n
Despite the mayor\u2019s concerns, at least seven of the other 10 city council members indicated their support during the meeting for moving ahead with negotiations.<\/p>\n
District 3 Councilwoman Phyllis Viagran, who represents the Southeast Side, was one of the most vocal supporters of having City Manager Erik Walsh finalize a term sheet with the NBA team.<\/p>\n
\u201cI trust the Spurs. I know the Holt\u2019s. I know they want to be here, and they\u2019re the majority owners,\u201d Viagran said. \u201cSo I\u2019m ready to tell you, Erik, move with the lawyers and continue to get this done and bring it to us for a vote.<\/p>\n
\u201cAnd those who want to vote \u2018no,\u2019 vote \u2018no.\u2019 But this is where we need to go.\u201d<\/p>\n
As her position became the clear minority on the dais, Jones tried to call for a vote to pause negotiations until after an \u201cindependent\u201d economic analysis had been completed. However, city legal staff told her it was not possible since there hadn\u2019t been any possible action posted on the agenda.<\/p>\n
Although a staff presentation during the meeting indicated a non-binding deal could be presented to council members for a vote by the end of the month, and council members\u2019 discussions revolved around Aug. 21 specifically, Walsh said he did not know how long it would take.<\/p>\n
KSAT asked Jones after the meeting about the majority of council rejecting her request.<\/p>\n
\u201cI think the people know that we need more information on this,\u201c she said. \u201dAnd I think that has been very clear in the feedback that has been provided. The fact that we are this amount of time into this \u2014 three years into it \u2014 and we still don\u2019t have a final number on how much the Spurs \u2014 how much the arena costs. That\u2019s kind of a basic thing we should have.”<\/p>\n
The city only publicly unveiled its multi-billion-dollar plan for a new sports and entertainment district, codenamed \u201cProject Marvel,\u201d in November 2024<\/a>. But records obtained by KSAT show Spurs officials and city staff were discussing a downtown move as far back as January 2023<\/a>.<\/p>\n Funding plan & voter input<\/p>\n A new Spurs arena in Hemisfair, at the corner of IH-37 and C\u00e9sar Ch\u00e1vez Boulevard, is one of Project Marvel\u2019s key features.<\/p>\n The city plans to take on debt and pay it back through special tax capture zones and lease revenue from the arena and ground for new development. Supporters have argued those funding sources<\/a> would not directly affect San Antonio taxpayers. <\/p>\n None of the city funding mechanisms requires voter approval, but residents will still get a chance to weigh in. Bexar County commissioners on Tuesday put the county\u2019s share of public funding on the Nov. 4 ballot.<\/p>\n Voters will be asked<\/a> whether to raise the hotel portion of an existing county venue tax to 2%, which could be used to fund up to $311 million worth of the arena\u2019s construction.<\/p>\n The Spurs have said they would pay $500 million toward the arena\u2019s cost and cover any cost overruns. They also offered<\/a> $60 million in community incentives.<\/p>\n A key part of the city\u2019s funding scheme relies on Spurs Sports & Entertainment (SS&E) pairing with a developer to generate more property tax revenue within a tax increment reinvestment zone (TIRZ). SS&E Chief Legal Officer Bobby Perez told council members the team would guarantee $1.4 billion worth of nearby development by 2042, $500 million of which would be done by 2031.<\/p>\n Pushed by Jones on where the extra money would come from if the arena\u2019s cost rose beyond $1.311 billion \u2014 the maximum combination of the city, county, and Spurs\u2019 current, possible shares \u2014 Perez said that would be the team\u2019s problem.<\/p>\n \u201cIf that\u2019s all you\u2019re going to put in, $500 (million), we\u2019ve got to figure out how to get to $1.5 billion. That\u2019s on us. Right? And we gotta go figure it out,\u201d Perez said.<\/p>\n Economic impact<\/p>\n Consultants for the city and SS&E also presented economic impact reports Wednesday that estimate a combined $538 million would be pumped into the local economy every year because of the arena and other parts of Project Marvel.<\/p>\n CSL International\u2019s economic impact analysis, which was posted online<\/a> a week ago, focused on some of the core projects within the district: expanding the Henry B. Gonz\u00e1lez Convention Center, improving the Alamodome, turning the former John H. Wood Jr. federal courthouse into a concert venue and various mixed-use developments.<\/p>\n However, experts called the report \u201cuseless,\u201d<\/a> pointing to a lack of clarity on its construction and concern that such reports are often used to justify projects someone already wants to do.<\/p>\n John Kaatz, a CSL principal, said a more in-depth version of the report would be released soon.<\/p>\n CSL did not analyze the arena\u2019s potential impact itself, but only reviewed the executive summary of the Spurs\u2019 consultants. That January-dated report was only posted online<\/a> this week.<\/p>\n Noting the request from Jones and at least one other council member \u2014 District 5 Councilwoman Teri Castillo \u2014 for an \u201cindependent\u201d analysis, Walsh said staff would look into \u201cwhat that means and how long it would take and who could do it.”<\/p>\n Public Comment<\/p>\n The meeting included more than three hours\u2019 worth of public comment tied directly to Project Marvel.<\/p>\n Numerous business groups and downtown organizations spoke in favor, saying Project Marvel will help grow the city.<\/p>\n “We have an opportunity for economic development,” Greater San Antonio Chamber of Commerce President and CEO Jeff Webster said. \u201cWe have an opportunity for economic opportunity for new entrepreneurs to start a business. We have an economic opportunity for businesses that are here in San Antonio to grow and hire. That money doesn\u2019t stay downtown. That goes to all corners of our city.\u201d<\/p>\n