San Antonio Voters Approve Plans for $1.5B Downtown Spurs Arena
Proposition B passes narrowly, setting stage for new entertainment district basketball arena
The proposed $1.5-billion downtown Spurs arena will anchor a new entertainment district in San Antonio, Texas, featuring a mix of residential, retail, dining and entertainment spaces aimed at revitalizing the urban core.
San Antonio, Texas, voters narrowly approved a proposal funding a new downtown arena for the National Basketball Association's San Antonio Spurs basketball team, passing Proposition B with a 52.1% vote. The decision advances a major public-private partnership venture valued at an estimated $1.5 billion to relocate the team from the Frost Bank Center on the city's east side to a new venue in the urban core.
With Prop B's passage, Bexar County will raise its hotel occupancy tax by up to 2%, bringing the total rate to 17%, and extend its existing 5% rental car tax—both measures aimed at funding the future home of the Spurs, which will anchor a larger entertainment district known as Project Marvel.
County officials estimate these sources will generate roughly $311 million, covering about a quarter of the arena's projected cost. The city plans to contribute about $489 million through tax-increment financing districts, while the Spurs organization is expected to invest around $500 million in private funding, including coverage for potential cost overruns.
The proposed district includes an expansion of the Henry B. Gonzalez Convention Center, a new convention hotel, a land bridge over I-37 to connect the east side to downtown, upgrades to the Alamodome and extensive new infrastructure to support the planned Spurs arena and surrounding development.
Global design firm Populous produced the initial renderings.
Spurs CEO R.C. Buford described the proposed arena as an investment in San Antonio's future. In a written statement, the San Antonio resident said the project "presents the opportunity to energize our economy, strengthen our community and position San Antonio for long-term success."
Once completed, this will be the Spurs' fourth home in San Antonio over the past 50 years. The team played at HemisFair Arena until 1993, moved to the Alamodome and to its current venue, the Frost Bank Center, in 2002.
'Generational Investment'
Mayor Gina Ortiz Jones called the vote "a generational investment" that would help "revitalize our downtown and strengthen our city." In her statement, she emphasized that "great cities are built through collaboration, persistence and bold visions." She also reaffirmed her commitment to collaborating with the Spurs and community leaders to create a plan that fosters "progress and affordability in downtown."
The vote advances the arena proposal but does not finalize it, allowing for ongoing negotiations between city officials and the Spurs. The team's lease at Frost Bank Center remains in effect through 2032. "Nothing's gonna start till we get the contracts," Bexar County Judge Peter Sakai said during a news conference.
The vote comes after an earlier step taken in April, when the city, Bexar County and the team entered a non-binding memorandum of understanding outlining their intent to pursue a new arena.
Before the council approved it, Jones called for a "strategic pause" in negotiations, urging the panel to commission a new economic-impact study led by a consultant with no ties to the Spurs. The previous analysis was conducted by CSL, a firm whose parent company is affiliated with the team.
Jones pointed to the scale of the proposed project and the roughly $489 million in city-backed obligations as a reason to require an independent review. Despite her request, the council moved forward to approve the measure, 7-4.
