The San Antonio City Council approved a term sheet Thursday for a $1.3 billion downtown arena for the Spurs, rejecting Mayor Gina Ortiz Jones’ request for a “strategic pause” in the process.
At a six-hour meeting filled with business leaders, community groups and Spurs officials, council members voted down Jones’ proposal 7-4 before approving the terms by the same margin. The arena is part of Project Marvel, a nearly $4 billion sports and entertainment district at Hemisfair on the site of the former Institute of Texan Cultures.
The non-binding term sheet calls for a 17,000- to 18,500-seat arena to open by the 2032-33 NBA season, when the team’s lease at Frost Bank Center expires. The Spurs would contribute at least $500 million and cover all cost overruns. The city would provide up to $489 million, or 38% of the cost, and Bexar County would contribute up to $311 million, or 25%, if voters approve a venue tax increase on Nov. 4.
The agreement includes a 30-year non-relocation clause, with the team paying $4 million in annual rent that increases 2% each year. The Spurs also agreed to provide $2.5 million annually in community benefits, totaling $75 million over the lease, and pledged $1.4 billion in nearby development over 12 years.
Mayor Gina Ortiz Jones said she wanted the council to wait until an independent economic impact study was completed and more public meetings were held.
“I want to make sure the Spurs stay in San Antonio for as long as possible,” Jones said. “I do want to make sure — and I think that is best accomplished when folks feel like they have all of the data and feel like they have been brought into the process.”
Councilwoman Phyllis Viagran voiced her support for moving forward with the deal.
“We’ve done this speech three times. We can agree to disagree. You either trust this team sitting in front of me with the City of San Antonio. You trust the Spurs, or you don’t. I trust the Spurs,” Viagran said.
Councilman Leo Castillo-Anguiano, who voted against the measure, said the process favored business interests.
“The folks who are asking us to vote ‘yes’ on this term sheet, majority were all wearing fancy business suits, are CEOs, presidents or had big-paying jobs,” Castillo-Anguiano said. “On the other hand, the folks who are asking us to vote ‘no’ on this term sheet are majority working-class folks who are probably missing work just to be here. And I think that speaks volumes.”
Spurs managing partner Peter J. Holt issued a statement after the vote.
“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,” Holt said. “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.”
“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,” Holt said. “Now, the next step belongs to the people of Bexar County. On November 4, voters will have the opportunity to decide on this project, and we are hopeful they will join us in saying yes to the future of our city.”