SAN ANTONIO – After nearly a year of questions, city officials provided the first detailed look at who would foot the bill for a new Spurs arena as part of a proposed sports and entertainment district in downtown San Antonio.
At a special City Council meeting on Friday, City Manager Erik Walsh outlined preliminary figures showing the split for how the project would be funded between the City of San Antonio, the San Antonio Spurs and Bexar County.
Funding details from City Council presentation on Project Marvel, July 25, 2025. (KSAT)City of San Antonio
Walsh said the city could contribute between $350 million and $500 million toward the arena’s construction. However, he emphasized these numbers are not final and remain subject to change.
The numbers are the first time the city has laid out hard figures for funding connected to the arena.
Walsh said several funding options could prevent taxpayers from bearing the full cost.
These include leasing the arena to the Spurs and leasing other parts of the property to private developers.
The city could also use revenue generated from a special Tax Increment Reinvestment Zone (TIRZ) in the Hemisfair area, as well as a Project Finance Zone (PFZ). This state mechanism captures and reinvests a portion of hotel and state tax revenue in a defined area.
Funding details from City Council presentation on Project Marvel, July 25, 2025. (KSAT)San Antonio Spurs
Hours before the meeting on Friday, KSAT obtained a letter from Peter J. Holt, the team’s chairman and managing partner, as well as Walsh, Mayor Gina Ortiz Jones and the rest of the council.
Holt said investors and future development partners “are willing to invest over $1 billion in this effort,” including $500 million for the arena alone.
The price tag for the Spurs’ proposed investment would include:
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$500 million and guaranteed coverage of cost overruns for a new arena
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$500 million in adjacent downtown development
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$60 million in additional community incentives
Bexar County
According to the presentation, Walsh said Bexar County is considering paying approximately 25% of the total arena project cost. However, at most, the county would pay $311 million.
A venue tax could help pad that cost.
Jim Lefko, the director of communications for County Judge Peter Sakai, said numbers are being negotiated.
When the final cost of the arena has been determined, the county “will be able to provide a precise number for the amount it wants to ask the voters to approve.”
What’s next?
No vote was taken at Friday’s meeting.
Council heard hours of public comment during the special session. Father Richard Aguilar was one of the first people to speak in opposition.
“I’m a fan of the San Antonio Spurs, but I’m not a fan of this plan,” Aguilar said.
Dozens of others against the project also came to the microphone.
The Spurs “need to take responsibility and pay for this arena, which they won’t,” pastor Jimmy Drennan said.
There was support, though, in the crowd.
“This isn’t just about the Spurs,” Jesse Cazares said. “It’s about the future of our city.”
The city is still awaiting full feedback from the multiple community engagement sessions it has held throughout the summer. Jones also said the council is waiting to hear about the results of an economic analysis study.
“We will not submit a term sheet unless this body has provided feedback, which will be informed by the economic analysis and community feedback,” Jones said at the end of the meeting.
Background on the project
The new Spurs arena would be the linchpin of the proposed sports and entertainment district at Hemisfair. The plan includes:
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Expanding the Henry B. González Convention Center
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Building a new convention center hotel
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Renovating the John H. Wood Jr. Federal Courthouse into an events venue
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Upgrading the Alamodome
Friday’s discussion came several months after city council members OK’d the start of negotiations around the district. In April, the city, Spurs and Bexar County signed a memorandum of understanding reflecting shared efforts to bring Project Marvel to completion.
However, the arena is only a small part of the multi-billion-dollar proposed district, and funding it remains complicated.
One method would be the use of a Project Finance Zone (PFZ), which the city council approved in May.
The PFZ allows the city to collect a portion of hotel-related state tax dollars within three miles of a “convention center complex” over 30 years.
Another is a $175 million tax proposal for Bexar County voters to consider in November. Other funding models under consideration include arena lease revenue and ground leases for nearby property development.
The new city council includes some members who expressed concern during the recent election about how the city would proceed with its involvement in Project Marvel.
During a series of two-day community planning workshops held in each of the 10 city council districts, East Side residents expressed apprehension about the project’s goals.
Some residents pondered the necessity of Project Marvel, citing concerns such as the failed growth materialization around the Spurs’ current home on the East Side, the Frost Bank Center.
Holt, in the letter, said the organization would be committed to “making the case” to the community for the project’s viability.
Jones, during an interview with KSAT on Thursday, referring to some of the figures, said the numbers need to make sense for the community.
“Folks are asking, ‘Can we get some of that concession money? Can we get some of that parking?’ I think in folks’ minds it’s not just how we pay for it, but again, how does the community benefit,” Jones said.
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