How much a new downtown Spurs arena could cost
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A new downtown Spurs arena could cost up to $1.5 billion, San Antonio officials said Wednesday as they work with the county on a potential November tax election to support it.
Why it matters: Wednesday marked the first time city officials put a price tag on an arena and proposed entertainment district, and it was the first time they got into specifics about how to pay for the projects that could transform downtown.
Catch up quick: City officials revealed long-held plans for a new Spurs arena, and the entire district, in November, following more than a year of private discussions. They aim to finish arena construction by 2030.
By the numbers: The district, including the new arena at the site of the Institute of Texan Cultures at Hemisfair, could cost at least $3.3 billion, per city estimates.
How it works: City officials are looking to Bexar County to ask voters to approve the use of a county fund generated by taxes on hotel rooms and rental cars to help pay for the arena. They could also ask voters to increase the hotel portion from 1.75% to 2%.
- The city is also eyeing a relatively new financing method that would allow the use of revenue from the state's hotel-related taxes — such as sales and room taxes — over 30 years.
- The Texas Comptroller's Office says San Antonio could gain about $2.5 billion from that fund through 2054, the Express-News reported. But the city's chief financial officer, Ben Gorzell, said they can't use it all up front and need other funding sources to make it work.
- The Spurs have not said how much the team would contribute.
Context: The Spurs' lease with the county at the Frost Bank Center ends in 2032. The team said they won't stay there past then, according to city meeting documents.
- Bexar County Judge Peter Sakai has been pushing for more plans to develop the East Side neighborhood when the Spurs leave.
- The arena never brought the sort of revitalization leaders had touted when the Spurs moved there in 2002.
Zoom in: In addition to a new NBA arena, the district could include:
- An expanded Henry B. González Convention Center ($700 million to $900 million)
- A new convention center hotel ($750 million plus)
- A live entertainment venue at the site of the former John H. Wood Jr. U.S. Courthouse: ($100 million to $150 million)
- An upgraded Alamodome
- Retail and housing developments
- A land bridge, similar to the one at Phil Hardberger Park, that links downtown with the East Side
Reality check: The city did not provide cost estimates for Alamodome upgrades, the land bridge, property purchases or infrastructure improvements. That means the whole district is likely to be costlier.
What they're saying: "We're in agreement that we can build the best downtown in America if we work together, and I'm excited for that work ahead," Mayor Ron Nirenberg said Wednesday.
What's next: Bexar County commissioners would have to call for a venue tax election by August in order for it to be placed on the Nov. 4 ballot.