![\"\"](\"https:\/\/www.europesays.com\/us\/wp-content\/uploads\/2025\/11\/Holt.jpg\")
The Spurs\u2019 Peter Holt initially said the SAWS Chiller plant and his new arena were separate issues. Neither the city nor SAWS has backed up that statement. Credit: Sanford Nowlin<\/p>\nThe Spurs\u2019 Peter Holt initially said the SAWS Chiller plant and his new arena were separate issues. Neither the city nor SAWS has backed up that statement. Credit: Sanford Nowlin<\/p>\n
Last week, voters narrowly approved a public financing package for a new $1.3 billion arena for the San Antonio Spurs at Hemisfair. <\/p>\n
But it\u2019s not a done deal yet.\u00a0<\/p>\n
Indeed, the project faces another vote, this time on a bond package for necessary infrastructure improvements at Hemisfair. That election will likely be in May, and taxpayers will be on the hook.<\/p>\n
What\u2019s more, it could be harder sale at the ballot box, especially if the economy slides into recession, UT-San Antonio political science professor Jon Taylor cautioned. <\/p>\n
\u201cOne of the biggest problems they face is that we do not know how bad this economy is going to get between now and May,\u201d Taylor said. \u201cHow are you going to be able to sell voters on a half-billion-dollar bond proposal that will raise taxes or cost the city money in the face of likely city budget deficits? Will the mayor be on board with it?\u201d<\/p>\n
Bexar County Voters last Tuesday voted 52%-48% in favor of Proposition B. The measure, which the Spurs spent pat least $7 million promoting, passed by just over 10,000 votes. With its approval the county\u2019s visitor tax rises to 2%, and $311 of that additional revenue will go to financing a new basketball arena for the city\u2019s NBA franchise.\u00a0<\/p>\n
\u201cIt\u2019s a win, but it\u2019s not a mandate by any stretch of the imagination,\u201d Taylor said of the election results.\u00a0<\/p>\n
The approval of Prop B also means the city\u2019s $489 million contribution, financed through captured property-value tax increases and state sales tax via a Tax Increment Reinvestment Zone (TIRZ) and a Project Finance Zone at and around Hemisfair, will move forward.\u00a0<\/p>\n
However, not all the components have fallen into place yet. \u00a0<\/p>\n
The final piece to the Project Marvel puzzle is a city infrastructure bond that will be put to voters in May.\u00a0<\/p>\n
The bond, initially estimated around $250 million, was to cover traffic-signal improvements, highway-ramp expansions and a new parking garage at the Alamodome, among other projects, KSAT reports<\/a>.\u00a0<\/p>\n However, the bond now may rise as high as $500 million as city leaders acknowledged that San Antonio Water System\u2019s downtown chilling plant may need to be relocated to make way for the development. And, unlike the campaign for the new arena, the city and Spurs can\u2019t tell taxpayers that only visitors will be on the hook, Taylor said.<\/p>\n \u201cThe things that get hit first [in a recession] are tourism and conventions,\u201d Taylor said. \u201cSo, the prospects of getting a bond passed and convincing people that in a recessionary economy this is a good thing to do \u2014\u00a0instead of being more prudent with taxpayer money \u2014\u00a0is a hard sell and an uphill climb.\u201d<\/p>\n Indeed, the Express-News reported Monday <\/a>that $1 million in repair work is needed at the chilling plant located across from the Henry B. Gonz\u00e1lez Convention Center, between Market and Commerce streets.\u00a0<\/p>\n That revelation comes as the city and SAWS considering moving the chilling plant to make way for a convention center hotel.<\/p>\n City officials initially said the proposed 20,000-square-foot hotel could serve as UT-San Antonio\u2019s School of Hospitality. However, that idea hasn\u2019t been explored further since it was floated during a City Council meeting last November.\u00a0<\/p>\n Moving that plant could cost an additional $200 million, as reported by the Express-News<\/a>, which would bring the total infrastructure improvements cost to somewhere between $400 million and $500 million.<\/p>\n Spurs Managing Partner Peter J. Holt said during the San Antonio Report\u2019s CityFest<\/a> last month that the proposed basketball arena and the SAWS chiller plant were \u201ctwo separate issues.\u201d<\/p>\n However, SAWS officials told the Express-News in April <\/a>that the current system\u2019s capacity would need to be increased if new facilities, including a new NBA arena, were to use the plant for cooling.\u00a0<\/p>\n Neither the city nor SAWS has responded to the Current\u2019s request for comment about whether the existing plant could service a new arena or surrounding economic development at Hemisfair pledged by the Spurs.\u00a0<\/p>\n Regardless, Taylor said most voters were unaware of the additional price tag, and their skepticism would likely rise further if the economy cools. That could lead to another expensive campaign for the pro-Project Marvel coalition, he added. <\/p>\n \u201cYou can make the argument that this will build out our tax base and generate revenue, but there\u2019s no real promise that will happen,\u201d Taylor said.\u00a0<\/p>\n Additionally, since the bond election will be a citywide vote, it could be harder to secure the necessary \u201cyes\u201d ballots to move forward with the project, since Proposition B was carried by affluent enclaves on the far North Side and Alamo Heights, none of whom can vote in city elections, Taylor added.<\/p>\n Subscribe to SA Current newsletters.<\/strong><\/a><\/p>\n Follow us:\u00a0Apple News<\/a>\u00a0|\u00a0Google News<\/a>\u00a0|\u00a0NewsBreak<\/a>\u00a0|\u00a0Reddit<\/a>\u00a0|\u00a0Instagram<\/a>\u00a0|\u00a0Facebook\u00a0<\/a>| Twitter<\/a>\u00a0| Or sign up for our\u00a0RSS Feed<\/a><\/strong><\/p>\n Related Stories<\/p>\n \t\t\t\t\t\t\t\t \n\t\t\t\t\tThe news comes as Bexar County residents head to the polls to decide whether to approve a new Spurs arena. \t\t\t\t<\/p>\n
\n\t\t\t\t\t\t\t\t\t\t\t\t![\"Project](\"https:\/\/www.europesays.com\/us\/wp-content\/uploads\/2025\/11\/1762815079_23_screenshot_2024-11-21_at_11.25.38___am.png.png\")
\t\t\t\t\t\t\t\t\t\t\t\t<\/a><\/p>\n
![\"Leading](\"https:\/\/www.europesays.com\/us\/wp-content\/uploads\/2025\/11\/ATT_Center_Spurs_Nuggets1-1.jpg\")
\t\t\t\t\t\t\t\t\t\t\t\t<\/a><\/p>\n![\"Opinion:](\"https:\/\/www.europesays.com\/us\/wp-content\/uploads\/2025\/11\/alamo_dome.webp\")
\t\t\t\t\t\t\t\t\t\t\t\t<\/a><\/p>\n