San Antonio council says no to second Spurs arena vote
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Photo Illustration: Lindsey Bailey/Axios. Photo: Courtesy of the City of San Antonio
The San Antonio City Council on Monday narrowly rejected an effort led by Mayor Gina Ortiz Jones to put city funding for a new Spurs arena on the November ballot.
Why it matters: Opponents of another election say voters already had a say on the arena project last November when they approved a venue tax increase. Supporters of the mayor's push say the last vote was different, and the public deserves an election on the city's arena funding alone.
Driving the news: The City Council's 6-5 vote to keep the city arena funding measure off the November ballot allows the project to move forward — at least for now.
Catch up quick: The City Council approved $489 million for the arena last year as part of a nonbinding framework. Jones was on the losing side of that 7-4 vote.
- Monday was the deadline for the City Council to approve putting any measure on the November ballot.
How it works: The funding framework covers a $1.3 billion arena. The Spurs agreed to fund any amount beyond that; officials have estimated the cost could be up to $1.5 billion. The framework includes:
- $500 million from the Spurs.
- $311 million from taxes on hotel rooms and rental cars in Bexar County — which county voters approved last November.
- $489 million from a city bond, backed in part by revenue from the Spurs' arena lease and property taxes on new development built around the arena.
What they're saying: "I understand that this finance structure does not legally necessitate a vote, but that is not a good enough reason to deny an opportunity," said District 2 Councilmember Jalen McKee-Rodriguez, who voted in favor of the election.
- Jones did not make public comments ahead of the vote she requested.
The other side: "Last November, the voices of San Antonio and Bexar County were heard," R.C. Buford, Spurs Sports & Entertainment CEO, told councilmembers Monday. "They gave us direction: Invest in a downtown home for the Spurs and for the future of San Antonio."
- Former Spurs player Sean Elliott attended Monday's meeting to support the new arena, though he did not comment directly on the possibility of another election.
State of play: Jones has argued that city voters should have a say on the $489 million now that they have a better understanding of the city's next budget, in which officials are proposing a property tax rate increase.
- But the $489 million cannot go toward the city's general fund budget. The property tax revenue comes from development that would not be built without an arena plan in place, city manager Erik Walsh says.
- Another source of money backing the city's $489 million contribution is the funds from a "project finance zone" that state lawmakers created in 2023, which allows the city to collect increases in state hotel tax revenue. That money could also go toward other venues like the convention center and the Alamodome.
What we're watching: The council's most progressive members voted to hold another election, and several said important negotiations remain.
- "I certainly hope that no one believes that a deal is done before a contract is signed," McKee-Rodriguez said.