Approval of the funding framework passed in a 7-4 vote. The focus now shits to the Bexar County venue tax election in November.
SAN ANTONIO — A City Hall stalemate over the immediate future of Project Marvel and its headlining component of a downtown San Antonio Spurs arena ended with council members voting Thursday afternoon to approve a financing framework between the city and the team.
The 7-4 vote – a major checkpoint in the continuing process to realize a multibillion-dollar downtown sports and entertainment district – resets the focus to Nov. 4, when Bexar County voters will be asked to approve a venue tax representing the county’s contribution to the arena, estimated to cost $1.3 billion.
But it also marks a defeat for Mayor Gina Ortiz Jones, who has spent the last two weeks calling for a “strategic pause” on arena talks so that the city could conduct an independent economic impact study. Just before 2 p.m. Thursday, council voted 4-7 to reject her resolution delaying a vote on the term sheet, a n on-binding agreement that lays out the funding framework.
In both votes, only Council members Leo Castillo-Anguiano, Ric Galvan and Teri Castillo threw their support behind the mayor.
She had expressed skepticism over an economic study led by CSL International and presented to City Council earlier this month, calling out “significant gaps” in data regarding a downtown Spurs home and CSL being owned by a firm that co-owns the NBA team.
The mayor worked to strike a balance in her messaging in recent days while ramping up pressure on the council members who indicated they were ready to give the term sheet the green light.
“We can all appreciate the ways in which we as a community have invested in the Spurs and are thankful for the ways the Spurs have invested in us,” she said. “I think this discussion is also about how this community understands our worth and how we understand who we take into account and how we take things into account when we make significant decisions like this.”
The opposition between Jones and an opposing group of council members was at times tense. At an evening budget town hall Monday, she and District 10 Councilman Marc Whyte engaged in a brief war of words when Jones tried to take the mic to speak on Project Marvel.
Nonetheless, a majority contingent of the 11-member council opted for approving a term sheet between city staff and the Spurs. Those in favor have said they want to ensure the public knows the arena financing figures with as much time as possible before the November election; the outcome of that election will determine whether the terms can become a reality.
“We are not at the table. There’s a seat at the table for us, but we are not there yet,” Councilwoman Phyllis Viagran said before the vote. “This term sheet would get us to the table.”
Asked by Councilwoman Misty Spears about the urgency of getting the term sheet approved as soon as possible, City Manager Erik Walsh pointed to the MOU signed by the city, Bexar County and Spurs in April which stipulated that a funding framework be agreed to over the summer.”
“It never was an either-or. The city can still work on sidewalks, addressing homelessness, affordable housing,” added District 7 Councilwoman Marina Alderete Gavito. “This is our moment to show the city what’s possible when we work together.”
The financing figures for building a downtown arena include a $500 million commitment from the Spurs; $311 million from Bexar County; and up to $489 million from the city, to be paid for via the issuance of bonds repaid through future Spurs lease payments, allocation of incremental property tax growth over time in the area and Project Finance Zone dollars.
The framework doesn’t call for raising property taxes for San Antonians. Representatives with Spurs Sports & Entertainment had expressed optimism in the process up to this point, saying Thursday’s vote comes after well over a year of discussions.
The council votes were preceded by three and a half hours of often-passionate public comments in a City Hall that was standing room-only. Sean Elliott, the former Spurs player who now works as a broadcaster for the team, appeared to advocate on behalf of approving the term sheet Thursday.
“The Spurs have always been an instrument for bigger things to build up San Antonio. That spirit continues today,” Elliott said. “We are a city on the rise. This gives us a chance to really soar.”
The now-approved term sheet estimates it will take 57 months to design and build an arena with a capacity of between 17,000 and 18,500. The plan is for it to go up at the 13-acre site of the former Institute of Texan Cultures. Thursday’s vote doesn’t directly impact Project Marvel’s other anchor projects, which include expanding the Henry B. González Convention Center, constructing a land bridge over Interstate 37, turning the downtown federal courthouse into a live music venue and renovating the Alamodome.
The Spurs have also committed to providing $2.5 million annually for community benefits while working with private companies to develop at least $1.4 billion worth of development in the area. The team’s lease at Frost Bank Center ends at the culmination of the 2032-2033 season.