A new home arena for the NBA’s San Antonio Spurs has moved a step closer after the San Antonio city council approved a term sheet for the project.
KSAT said that after a contentious political battle, the San Antonio City Council greenlit the next steps for Project Marvel, the city’s plan to create sports and entertainment district in Hemisfair, including a new Spurs arena.
Mayor Gina Ortiz Jones has been calling for a strategic pause on Project Marvel, a nearly $4 billion downtown sports and entertainment district.
The San Antonio Spurs are an American professional basketball team based in San Antonio, Texas, US. The Spurs compete in the National Basketball Association (NBA) as a member of the Southwest Division of the Western Conference. The team plays its home games at the Frost Bank Center.
The 19,000-capacity Frost Bank Center is a multipurpose indoor arena on the East side of San Antonio, Texas, United States. It is the home of the San Antonio Spurs of the NBA.
The council voted 4-7 to approve a term sheet with the Spurs for the new arena, while also denying Jones’ resolution, 4-7, asking for a delay.
The draft of the non-binding term sheet provides details of the scope of work involved in Project Marvel, the arena costs, a timeline of the construction and a completion period, arena ownership, parking and more.
According to the term sheet, the Spurs arena would cost $1.3 billion and would have a capacity ranging from 17,000 to 18,500.
The Spurs would contribute $500 million, plus any costs in excess of city and county contributions.
The city would provide up to $489 million or 38% of the arena costs, whichever is less. Bexar County would use a venue tax to contribute up to $311 million or 25% of the cost, however, that is subject to a vote in November.
The term sheet includes a non-relocation agreement for the term of the lease with Spurs, as well as the NBA franchise paying an annual $4 million in rent.
Additionally, the Spurs would agree to provide funding of $2.5 million annually for a total of $75 million over the initial term of the arena lease and to engage with third-party developers to build certain portions of the district. However, the Spurs did not list the investors.
The parties involved in the term sheet would also work on developing plans to provide parking, transportation and security.
Design and construction of the arena is expected to take up to 57 months, according to the term sheet.
Spurs aim to be in the new arena by the start of the 2032-22 NBA regular season, which is the same year the team’s lease is up at the Frost Bank Center.
Peter J. Holt, managing partner for San Antonio Spurs Sports & Entertainment issued a statement after the council session vote.
He said, “Today’s vote is an important step forward for San Antonio. I want to thank the members of City Council, the City staff and County for their leadership, diligence and collaboration in helping us reach this point.
“This project is about more than an arena. It’s about pride in who we are as a city and belief in what San Antonio can become. The Spurs are investing over $2 billion because we believe in San Antonio’s future.
“That includes a $500 million direct contribution toward the arena, covering 100% of cost overruns, guaranteeing $1.4 billion in private development and $75 million in community benefits. There will be no impact on local residents’ taxes and no money diverted from the city’s general fund.
“This will be a true public-private partnership. The arena will be publicly owned, funded by visitors, and built to revitalize our downtown, create jobs and give future generations a place to celebrate together.”
The next step belongs to the people of Bexar County. On November 4, voters will have the opportunity to decide on the project.
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