Here’s what we’re seeing at City Hall as council prepares to make a potentially milestone decision.
SAN ANTONIO — The sight of a packed City Hall in downtown San Antonio was a sign of the pivotal discussion to come between city leaders: One that could pave the way for approval of a term sheet between the city and Spurs for a $1.3 billion arena or delay that approval at the behest of Mayor Gina Ortiz Jones, who has called for an independent economic analysis.
The began at 9 a.m., with public comment now underway before scheduled votes on dueling resolutions to vote or delay.
Read on for the latest updates out of City Council.
10:10 a.m.
Public comment begins, with 108 individuals signed up to speak. The first speaker, Graciela Sanchez, director of the Esperanza Peace and Justice Center, called Project Marvel evidence that “Control of the city is still in the hands of the financial elite.”
Two women standing with Sanchez carried signs reading “Our $$$, our decisions” and “Transparency is key.”
“Many of you are business people or consider yourselves caretakers of public funds,” Sanchez told council members. “You surely know a responsible businessperson would require an independent economic analysis.”
9:55 a.m.
City staff reminded San Antonio leaders as well as the public about the terms of the proposed agreement, which is contingent on a scheduled Nov. 4 Bexar County venue tax election. That funding source would provide $311 million for the Spurs arena, to be paid for via hotel and rental car tax.
The city’s contribution of up to $489 million would be covered by the issuance of bonds repaid over time through Spurs lease payments, incremental tax revenue and a Project Finance Zone that allows the city to recoup state dollars for Project Marvel. The team would be on the hook for cost overruns.
The arena funding framework as laid out in the term sheet is contingent on the venue tax measure passing in November. According to the document, it’s estimated it would take 57 months to design and build a downtown arena in the former site of the Institute of Texan Cultures.
9:45 a.m.
Before the public comment portion of Thursday’s meeting began, there was a brief showdown between Jones and Peter J. Holt, the chairman of Spurs Sports & Entertainment.
Technically speaking, Jones initiated council discussion early with a motion and subsequent second in order to ask Holt whether the Spurs would be supporting of the city pursuing an independent impact study on a downtown arena. Holt responded by pointing to what he called a “historic” investment the Spurs have committed to, including $500 million for the arena and a $75 million community benefits investment.
In what took shape almost as a judicial proceeding, Jones twice more asked Holt if the Spurs would support the city conducting another economic analysis. Holt repeated his refrain about the organization’s investment as laid out in the term sheet.
It amounted to a remarkable blinking contest, both sides receiving loud applause from their respective cohorts of supporters.
Jones has spent the last two weeks pressuring fellow members of the 11-person City Council to delay term sheet approval, calling out “significant gaps” in an economic study presented to them on Aug. 6 by CSL International. That firm is owned by a co-owner of the Spurs, which Jones and some council members have called out.
This is a developing story.