Voters to decide on hotel tax funding for proposed downtown arena in November election

SAN ANTONIO — The San Antonio City Council has taken a significant step forward by approving a term sheet with the Spurs for a proposed downtown arena project. However, the project still faces substantial challenges, including a pivotal county election in just over two months.

On November 4, voters will decide whether to approve the county’s hotel occupancy tax to allocate up to $311 million for the arena project. Despite the council’s approval, questions linger within the community.

Councilman Marc Whyte emphasized the need for transparency, stating, “We’re going to get into our communities and discuss this finalized term sheet with them. We’re going to bring the Spurs personnel and we’re going to say, hey, here’s the deal.”

Mayor Gina Ortiz Jones announced plans for an independent economic analysis of the arena’s impact, although it may not be completed by November. The city’s contribution to the arena would be $489 million, funded through bonds and repaid via project finance zones using state tax money. The mayor suggested the possibility of letting voters approve the bond issuance, but it remains uncertain if this will occur.

“I’ll leave it to the city staff to help understand what makes the most sense. I think what is most exciting is that the public would be able to weigh in directly. Assuming my colleagues support that ordinance,” said Mayor Jones.

The San Antonio Spurs released a statement describing the arena as an investment in the city’s future, assuring that there will be no impact on local residents’ taxes and no diversion of funds from the city’s general fund. They expressed their commitment to ensuring the community fully understands the deal.

Peter J. Holt, Chairman of Spurs Sports & Entertainment, said, “We have an immense opportunity now ahead of us, to communicate, educate, and answer questions and to support our community like we’ve done for over 50 years.”

The City Manager was unavailable for comment. The term sheet is expected to be finalized by the end of the month and will be available on the project’s website at SA.gov/SportsDistrict.

You can review the term sheet here.