A proposed downtown arena for the San Antonio Spurs basketball team is expected to cost roughly $1 billion, funded in part by a potential increase to the county’s hotel occupancy tax, according to a discussion among Bexar County leaders on Tuesday.
The county’s financial analysts say Bexar County’s venue tax — considered one of the most likely source of public funds — could provide about $400 million, according to County Manager David Smith.
If voters approve an increase to the hotel occupancy tax that could be stretched to about $448 million — money that’s expected to help fund the arena, as well as other major upgrades to keep the existing Frost Bank Center in use.
The estimates come as county leaders are seeking to put hard numbers behind a potential public-private partnership that’s been closely-guarded.
They’re also considering a number of other uses for that money outside of a Spurs arena, such a renovations to both the Frost Bank Center and Freeman Coliseum.
“This was my effort to be open and transparent, to start letting the public know, this is your tax money,” Bexar County Judge Peter Sakai said of the venue tax presentation. “… I’m not committed to a tax increase at this time.”
The Spurs’ owners have been working behind the scenes with city officials on a landscape-changing entertainment district for more than a year — and even pushed the county to ask voters for money to fund the arena in the May municipal election — all without ever disclosing the projected cost and revenue sources.
That lack of transparency ultimately cost the team a crucial deadline when lining up the funding, as county leaders said they were uncomfortable asking voters to put money forward without seeking the full picture of the project’s funding.
“For all practical purposes, the May election has come and gone,” Sakai said Tuesday.
The next opportunity to bring voters on board with dedicating county funding is November.
County commissioners voted 4-1 on Tuesday to give Sakai permission to start negotiating a potential deal for the Spurs arena that could meet that deadline.
The discussions are expected to shed light on other potential funding sources for the arena, such as how much the city of San Antonio might contribute, and how much might come from private funders.
As of Tuesday, county leaders are still working off an estimated $1 billion price tag they say has been floating around, but they still haven’t received a cost breakdown from the Spurs’ owners about the arena.
In the meantime, they face intense pressure from community activists who are skeptical about using the county’s resources on another sports venue project.
The county still owns the Frost Bank Center, where the Spurs were expected to play their games until 2032, and which risks abandonment if they move downtown.
Two public input sessions on repurposing the arena, hosted by Commissioner Tommy Calvert (Pct. 4) turned up many ideas from the public, including turning it into a hospital or a school.
It’s unclear whether those ideas would meet the legal criteria for the venue tax, Sakai said Tuesday.
Calvert, who represents the East Side, tried to insert himself into the county’s negotiations on Tuesday by offering an amendment to the agreement that would name him in the memo of understanding.
The amendment died after it didn’t receive a second, and Calvert cast the only vote against the memo of understanding.
