The mayor says San Antonians deserve “an independent, detailed economic analysis” before the City Council votes on the project.
SAN ANTONIO — San Antonio Mayor Gina Ortiz Jones is calling for a “strategic pause” in the city’s negotiations with the Spurs over the proposed sports and entertainment district known as Project Marvel.
The mayor released a statement outlining her views one day after a special City Council meeting on the topic in which a majority of council members expressed support for moving forward with the project.
Jones says that the drive to take action on the plan this month is not necessary. “That is a desire by some, but not a deadline for the city.”
In particular, she said she is concerned that the city’s total financial contribution is still in flux and the data on the economic impact of the proposal comes from a study funded by the team.
Jones called for the city to do its “due diligence” before proceeding.
“The people of San Antonio deserve an independent, detailed economic analysis to be presented to the City Council that clearly outlines the direct and indirect costs, as well as opportunity costs associated with a new Spurs arena.”
Project Marvel is the city’s multi-billion-dollar vision to enhance downtown with a sports and entertainment district, anchored by a new Spurs arena and surrounded by upgraded venues, mixed-use development and expanded visitor experiences.
From June 24 through July 22, more than 1,400 San Antonio residents took part in 10 separate two-day workshops where they weighed in on the project and its funding strategy.
On August 21, the council is expected to vote on a non-binding term sheet outlining the City’s commitment to fund its portion of the new arena through a bond structure. That contribution is estimated to range between $350 million and $500 million, backed by hotel occupancy taxes, lease revenue, and Project Finance Zone allocations, not property taxes.
Below is the full text of Jones’ statement on Project Marvel:
“Based on yesterday’s San Antonio City Council meeting, I believe we need a strategic pause in our negotiations with the Spurs. This is a generational investment, and we need the data to move forward smartly. There is no need to act by August 21. That is a desire by some, but not a deadline for the City.
The Spurs have stated that they want a $1.3-$1.5 billion arena. In the case of a $1.3 billion arena, based on the Spurs’ $500 million contribution, and the County’s $311 million contribution, the City’s contribution could be up to $489 million. As our residents face economic uncertainty based on federal cuts, and as we face a budget shortfall locally, we should proceed with data and caution.
The only data we have regarding the economic impact of a new Spurs arena is a study funded by the Spurs. The people of San Antonio deserve an independent, detailed economic analysis to be presented to the City Council that clearly outlines the direct and indirect costs, as well as opportunity costs associated with a new Spurs arena. The people are trusting us to do our due diligence, and we should do that.
In addition to the above, the independent, detailed economic analysis will:
- Help us understand the highest and best use of the public land within the proposed Sports & Entertainment District
- Provide the analysis that determined a new Spurs arena was the highest and best use for the ITC site
- Explain whether and how the proposed downtown Sports & Entertainment District can support two competing arenas
- Provide an estimate of the initial and future anticipated bond elections, including their respective values, needed to finance the infrastructure associated with the arena and proposed downtown developments
- Identify known and anticipated associated costs related to utility infrastructure modifications
- Independent, detailed economic impact analysis of activities at the Henry B. Gonzales Center and the Alamodome over the last 7 years, specifically noting the ROI for each in that time period
- Independent, detailed economic analysis that shows how proposed expansions at the Convention Center will directly and appreciably increase San Antonio’s competitiveness to attract conventions, in light of peer and other Texas cities similarly expanding their convention center footprint
- The analysis that informed the current approach toward housing in the Mixed-Use District (e.g., amount, type, location, affordability).”