Improvements to Freeman Coliseum and Frost Bank Center will be on the November 4 ballot

SAN ANTONIO – Bexar County voters will soon decide whether to raise the hotel tax rate to help fund major upgrades to existing venues and contribute to a possible new downtown arena for the San Antonio Spurs.

On Tuesday, the Bexar County Commissioners Court voted 4-1 to place a proposed increase in the venue tax on the Nov. 4 ballot. The move came after a public input session where residents weighed in on the plan.

The proposal would raise the hotel occupancy portion of the county’s venue tax from 1.75% to 2%. Commissioners must formally order the November election by Aug. 18 in order for the measure to appear on the ballot.

During a recent workshop, assistant city manager Lori Houston explained how the new Spurs arena will be funded.

“The people that are going to be paying for the San Antonio Sports Entertainment District are going to be tourists,” Houston said. “When tourists come to San Antonio, they pay a hotel occupants tax that will be used to support the projects within the district. It’s going to be developers. There are going to be no tax exemptions or tax abatements for this project. Developers will have to pay taxes to the city. Those taxes will go into what we refer to as tax increment reinvestment zone. The Spurs are also going to pay for this.”

Over the next couple of decades, county leaders said that the tax rate is expected to collect just under $450 million. Most of that money would go toward renovations and improvements to the Frost Bank Center, Freeman Coliseum, and the surrounding grounds — part of an effort to ensure the area’s continued use and relevance after the Spurs’ potential departure.

The rest of that money, close to $150 million, is what Bexar County would contribute to fund a new Spurs arena downtown.

Bexar County currently owns the Frost Bank Center, where the Spurs have played since 2002. The team has signaled it wants to relocate to a new arena in Hemisfair, envisioned as the centerpiece of a broader sports and entertainment district known as Project Marvel, spearheaded by the City of San Antonio.