Spurs arena deal advances against mayor's wishes
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San Antonio is moving ahead with plans to fund a new downtown Spurs arena with up to $489 million in city money, after the City Council voted 7-4 Thursday to approve a nonbinding deal.
Why it matters: The vote hands an early defeat to new Mayor Gina Ortiz Jones, who pushed to delay the funding framework until the City Council received an independent economic analysis. It's rare for a mayor to be on the losing side of a major council vote.
- Plans for the arena and a surrounding entertainment district are now gaining steam heading into the November election, when Bexar County voters will have a say on a portion of the arena funding.
State of play: The mayor says she worries the November vote could fail as opposition to the arena and concerns about the true economic impact have grown in recent months.
- But supporters of the deal approved Thursday say the public needs to see the full package before they head to the polls.
What they're saying: Jones says she wants a deal and wants to keep the Spurs in San Antonio. But hope "is not a strategy," she said.
- "We have seen in our community the times where we have not necessarily done our due diligence, and we can see the impacts of those each day," Jones told the council.
- "This is about making sure that our folks have the data and are brought into the conversation."
The other side: "We want this information available to the voters so they can make an educated vote in November," assistant city manager Lori Houston told reporters. "And if we wait until October, November, it's too late."
The latest: The term sheet approved Thursday lays out the framework for how the arena will be funded. It also says the Spurs will give the city $75 million over 30 years to benefit the community. The City Council would determine how to spend it.
- The Spurs "will not pursue any relocation opportunities" until after the November election, per the term sheet.
By the numbers: The Spurs now say they anticipate a new arena will cost $1.3 billion, the low end of the initial estimate of up to $1.5 billion. The cost would be covered by:
- $500 million from the Spurs
- $311 million from the Bexar County venue tax increase, if approved by voters in November
- $489 million from a city bond that does not require voter approval, or 38% of the arena cost, whichever is less
How it works: Spurs officials have said the team will cover any arena cost beyond that.
- The city bond would be repaid in part with new revenue officials anticipate gaining from the arena district.
What we're watching: Jones said she will seek a public vote on the city's $489 million contribution, even if it's not required.
What's next: Bexar County voters will decide on Nov. 4 whether 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 new arena could be ready in time for the 2032-33 NBA season, per the term sheet.