SAN ANTONIO – The San Antonio Spurs are committing over $1 billion dollars to help pay for Project Marvel and a new downtown arena.
The Spurs sent a letter Thursday night to the Mayor and City Manager with the details of their investment.
It includes:
- $500 million for a new state-of-the-art arena, with guaranteed coverage of cost overruns by SS&E
- $500 million in adjacent private downtown development
- $60 million in additional community incentives, including education, affordable tickets, and small business support.
Related: New details emerge on $4 billion Project Marvel funding plan
In a letter sent to City Manager Erik Walsh, Spurs Sports & Entertainment Chairman Peter J. Holt said:
Since the City of San Antonio first approached our organization about a potential partnership, the San Antonio Spurs have remained committed to pursuing an equitable agreement that benefits our community as a whole, strengthens our economy, honors our city legacy, and serves generations to come without raising taxes on local residents. As we have done since 1973, we are operating in good faith, grounded in deep love for our community and a sincere desire to help San Antonio thrive.
Related: San Antonio residents demand clarity on Project Marvel funding at community meetings
The project, which could cost up to $4 billion, has left many questions unanswered about its financial structure since its announcement last year.
The Spurs’ announcement answers some of the biggest questions about Project Marvel, slated to be the largest development project in San Antonio’s history. Importantly, it brings the funding picture for the new Spurs arena into sharper focus.
The arena is projected to cost between $1.2 and $1.5 billion. Using a $1.2 billion as an example to break down the funding:
- The Spurs say they will contribute $500 million.
- They are asking the City of San Antonio to contribute another $500 million, drawn from the Project Finance Zone and supported by state tax dollars.
- That would leave around $200 million in remaining costs.
County leaders have said that funds from Bexar County’s venue tax will first go toward the Freeman Coliseum and Frost Bank Center, with the Spurs’ arena receiving whatever is left. For now, the estimates suggest the $1.2 billion price tag could be covered, but that still depends on future decisions by the City and County. The new Spurs arena would be at the site where the Institute of Texan Cultures currently resides.
Other components of the project will include both expansions to existing buildings and the creation of a new ones.
First, the expansion of the convention center and a complete overhaul of the Alamodome.
A land bridge would be built over Highway 281, connecting the Alamodome to the new Spurs Arena. The plans also include turning the old federal courthouse into a 5,000 seat multipurpose center.
The Spurs will continue playing at the Frost Bank Center until their lease ends in 2032.
This tentative timeline remains fluid and will ultimately depend on key decisions by the City of San Antonio and Bexar County over the coming months:
- Public meetings in each council district in June 2025
- City public engagement wrapped up by July 2025
- August deadline to call a city bond vote.
- Potential bond election November 2025.
- Tax collections start in 2026, with design work underway soon after.
- Major construction on the Convention Center should begin around 2028
- San Antonio Spurs’ lease agreement for the Frost Bank Center with Bexar County expires in 2032
- Some larger pieces, especially Alamodome renovations, extend into the early 2030s and beyond.
Other benefits included in the proposal are a pledge to allocate 30% of construction contracts to locally owned San Antonio companies; free VIA Park & Ride service provided for up to 2,000 fans per game; 500 tickets available at $25 or less for every home game; and funding for a new early childhood education and childcare initiative.
The City of San Antonio is held a special session on Friday afternoon where Project Marvel was on the agenda.