Voters in San Antonio, Texas narrowly approved a funding proposal for a new arena for the NBA’s San Antonio Spurs, passing Proposition B with 52.1% of the vote. The decision advances a major public-private partnership valued at $1.5 billion to move the team from the Frost Bank Center on the east side of the city to a new site in the urban core.
With the passage of Prop B, Bexar County will increase its hotel occupancy tax to 2 percent, bringing the total rate to 17 percent, and expand its existing 5 percent rental car tax, both measures intended to fund the future home of the Spurs, which will anchor a larger entertainment district known as Project Marvel. County officials estimate those sources will generate roughly $311 million, covering about a quarter of the arena’s projected $1.5 billion cost. The City of San Antonio plans to contribute approximately $489 million through tax increment financing districts, while the Spurs organization is expected to invest about $500 million in private financing, including covering potential cost overruns.
The proposed district includes an expansion of the Henry B. Gonzalez Convention Center, a new convention hotel, a land bridge over I-37 to connect the east side to downtown, improvements to the Alamodome and extensive new infrastructure to support the Spurs’ arena and surrounding development. Global design firm Populous produced the initial renderings.
Spurs CEO RC Buford described the proposed arena as an investment in San Antonio’s future. In a written statement, the San Antonio resident said the project “presents an opportunity to energize our economy, strengthen our community and position San Antonio for long-term success.”
Once completed, this will be the Spurs’ fourth home in San Antonio over the past fifty years. They played at HemisFair Arena until 1993, then moved to the Alamodome and later to their current venue, the Frost Bank Center, in 2002.
“Generational investment”
Mayor Gina Ortiz Jones called the vote “a generational investment” that would help “revitalize our downtown and strengthen our city.” In his statement, he emphasized that “great cities are built through collaboration, persistence and bold visions.” He also reaffirmed his commitment to working with the Spurs and community leaders to create a plan that fosters “progress and affordability downtown.”
The vote advances the arena proposal but does not finalize it, allowing for ongoing negotiations between city officials and the Spurs. The team’s lease at the Frost Bank Center runs through 2032. “Nothing will start until we get the contracts,” Bexar County Judge Peter Sakai said during a news conference Wednesday.
The vote follows an earlier step taken in April, when the city, Bexar County and the Spurs entered into a non-binding memorandum of understanding (MOU) outlining their intent to pursue a new arena.
Before the board approved the MOU, Jones called for a “strategic pause” in negotiations, urging the board to commission a new economic impact study led by a consultant with no ties to the Spurs. The above analysis was performed by CSL, a company whose parent company is affiliated with the team. Jones pointed to the scale of the proposed project and the roughly $489 million in city-backed bonds as reason to require an independent review. Despite his request, the council went ahead with the measure, 7-4.
