Critics say Spurs arena district study omits key details
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Critics say a report forecasting a multibillion-dollar economic impact for an entertainment district around a proposed downtown Spurs arena is missing crucial information about costs and alternatives.
Why it matters: Opposition to the projects has mounted in recent months, as the City Council and County Commissioners Court have both considered calling separate November elections to put public funds toward the district and the arena, respectively.
The latest: Bexar County commissioners voted 4-1 Tuesday to ask voters on Nov. 4 to raise the county's venue tax, which is generated by taxes on hotel rooms and rental cars, to in part fund a new Spurs arena.
- The City Council is scheduled to discuss the economic impact report Wednesday.
Catch up quick: City and Spurs leaders are seeking a new NBA arena at the site of the Institute of Texan Cultures (ITC) at Hemisfair that could cost up to $1.5 billion.
- 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, a renovated Alamodome and more.
- The Spurs last month offered to pay $500 million for the arena, in addition to spending on surrounding development and community and child care initiatives.
- City manager Erik Walsh has floated a city bond of up to $250 million that could cover infrastructure improvements around the arena.
Zoom in: The city commissioned the consulting firm Conventions, Sports & Leisure (CSL) for the report. Consultants forecasted direct spending at hotels, restaurants and more "that would not otherwise occur," per the report.
- Their estimates include projects around an arena, but not a new arena itself.
By the numbers: CSL predicts the district would create $10.8 billion in direct spending and $351 million in new city tax collections over 30 years. The 30-year direct spending amount for each portion of the district is estimated at:
- Surrounding apartments, hotels, offices, restaurants and retail: $5.3 billion
- Expanded convention center: $4.4 billion
- New music venue: $644.5 million
- Renovated Alamodome: $442 million
Other consultants working for the Spurs found a new arena will generate $225 million annually in direct spending, per the report.
What they're saying: "Economic impact reports, from a policy standpoint, are completely useless," Geoffrey Propheter, associate public affairs professor at the University of Colorado-Denver, told KSAT, adding that they "provide incomplete information for policymaking."
- Susan Strawn, a member of the new No! Project Marvel coalition and a former District 1 City Council candidate, said at a Monday press conference that the report did not include a market, cost or risk analysis and does not consider whether money is better spent elsewhere.
The other side: "These projects have the potential to transform San Antonio's urban core, bringing millions of new visitors, residents and workers," the consultants wrote.
What we're watching: The City Council meeting will stream live at 1pm Wednesday here.
- Mayor Gina Ortiz Jones told the Express-News she would argue for an independent economic analysis.