What the Spurs will pay for a new arena
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The San Antonio Spurs are offering to pay for what could be one-third of the cost of a new downtown arena, in addition to contributing to childhood education initiatives.
Why it matters: City officials and the public have long awaited news of what the NBA team said it would commit to paying before advancing a new arena and surrounding entertainment district.
- It's been unclear what shape a deal could take because Mayor Gina Ortiz Jones and several new city councilmembers were sworn in last month.
By the numbers: The Spurs suggested the team would contribute $500 million toward a new arena that is expected to cost up to $1.5 billion, per a Friday presentation to the City Council.
- They also offered to spend $60 million on efforts such as community tickets and event transportation, as well as $35 million over 20 years on childhood education initiatives.
- The Spurs would spend another $500 million on nearby development projects, the Express-News reported.
Zoom in: The childhood education initiatives would include converting 10 closed schools citywide into learning and child care centers.
- The team also proposed matching the amount employees contribute toward child care and indicated it could contribute to Pre-K 4 SA, an idea Jones raised on the campaign trail.
How it works: City officials have said they could spend anywhere from $350 million to $500 million on the arena.
- Part of that funding would come from 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.
- More arena funding could come from Bexar County's venue tax, a fund generated by taxes on hotel rooms and rental cars.
- Separately, the city is considering a voter bond of up to $250 million that could cover road and infrastructure improvements around the arena.
Catch up quick: The city has led discussions for a new Spurs arena at the site of the Institute of Texan Cultures (ITC) at Hemisfair.
- It would anchor a broader entertainment district that could include a convention center remodel, an entertainment venue at the former John H. Wood Jr. U.S. Courthouse and more.
- The Spurs' lease with the county at the Frost Bank Center is up in 2032, and the team has indicated it doesn't want to stay there.
The big picture: Jones and the new council face mounting pressure over how they handle the arena deal. About four dozen people signed up to speak to the City Council Friday.
Friction point: Jones opened the meeting by saying she'd like to learn more about potential community benefits and even sharing in the Spurs' revenue from the arena.
- But the Spurs already said they won't enter a revenue-sharing agreement because the team is taking financial risks, per city manager Erik Walsh.
What's next: City and county elected officials would have until Aug. 18 to call a November election related to the city bond and the county venue tax.