Voters in San Antonio, Texas, have approved a proposal funding a new downtown arena for the National Basketball Association’s (NBA) San Antonio Spurs basketball team.
ENR said the decision advances a major $1.5 billion public-private partnership venture to relocate the team from the Frost Bank Center on the city’s east side to a new venue in the urban core.
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.
Proposition B relating to the arena was passed with a 52.1% vote. 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 these measures are aimed at funding the future home of the Spurs, which will anchor a larger entertainment district known as Project Marvel.
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.
According to a term sheet for the project, 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 will use the taxes to contribute up to $311 million or 25% of the cost.
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.
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.
Mayor Gina Ortiz Jones said after the vote, “The people of San Antonio have voted to approve the county’s contribution toward the proposed Spurs arena, and I will work to ensure this generational investment helps to revitalize our downtown and strengthen our city.
“Great cities are built through collaboration, persistence, and a willingness to keep working toward bold visions. Our urban core represents an opportunity to remake a vital part of our city—one that can drive economic activity, create quality jobs, and add affordable housing stock that our community desperately needs.
“I remain committed to working with Council colleagues, City Staff, the Spurs, and with community leaders to develop a plan that ushers in an era of progress and affordability downtown.”
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