SAN ANTONIO – Mayor Gina Ortiz Jones has doubled down on her request for a “strategic” pause on a city funding deal for a new downtown arena for the San Antonio Spurs.
In a news conference on Monday, Jones said she asked City Manager Erik Walsh for an independent economic analysis. She said she also wants concrete numbers on arena costs and how the local economy could benefit from the development at Hemisfair.
The full Monday news conference can be seen below.
The city has been considering financing up to $500 million of the arena’s total price tag, which is still unknown but could run up to $1.5 billion.
The mayor raised concerns during a marathon meeting Wednesday, saying she didn’t believe the information from city and Spurs consultants was adequate.
The city commissioned CSL International for the economic impact analysis. The analysis focused on some of the core projects within the district: expanding the Henry B. González Convention Center, improving the Alamodome, turning the former John H. Wood Jr. federal courthouse into a concert venue and various mixed-use developments.
CSL estimates an extra $533 million in a year tied to those projects.
On Monday, Jones said CSL’s analysis is incomplete.
The firm previously advised Philadelphia on a similar arena project and provided city leaders there with a “very in-depth presentation,” she said.
That Philadelphia study examined local market conditions and fiscal impacts on the city, school district, and state — elements that Jones wants to see included here.
Jones said CSL only reviewed summary findings from a Spurs consultant.
“I think if an independent economic analysis corroborates the numbers that the Spurs have provided, their consultant has provided, and that CSL has provided in other funds, then they corroborate it. And we can, I, think, have the confidence to move forward,” she said. “However, if it’s different, then we should also understand that. And we need those things laid out. What were your assumptions? What are your data sources?”
She said there’s “no rush” in entering a city funding deal for the project. The team’s lease at the Frost Bank Center expires in 2032.
Jones wants the city to put out an RFQ, or Request for Quote, for another firm to conduct an analysis.
She said she also wants clearer figures on costs and economic impact.
“Let’s get more information on the guaranteed revenues... let’s see if we can get an actual cost of the arena. We still don’t have that; we have this still kind of vague $200 million range,” she said.
During Wednesday’s meeting, Jones tried to call for a vote to pause negotiations until after an independent economic analysis had been completed. However, city legal staff told her it was not possible since there hadn’t been any possible action posted on the agenda.
Also on Wednesday, at least seven of the other 10 city council members indicated their support for moving ahead with negotiations.
District 3 Councilwoman Phyllis Viagran, who represents the Southeast Side, was one of the most vocal supporters of having Walsh finalize a term sheet with the NBA team.
On Monday, when KSAT asked Jones about the majority of council members wanting to move forward with the project, Jones said “that’s not what they said.”
“But that’s not what they said, though. What you heard — what folks actually said — were folks wanted to proceed, move forward with a term sheet, while they also worked to get additional information,” she said. “I think a key part of that additional information is an independent economic analysis. So we can do these things in parallel, and let’s never forget that the term sheet is non-binding.”
BACKGROUND
A new Spurs arena in Hemisfair, at the corner of IH-37 and César Chávez Boulevard, is one of Project Marvel’s key features.
The city plans to take on debt and pay it back through special tax capture zones and lease revenue from the arena and ground for new development. Supporters have argued those funding sources would not directly affect San Antonio taxpayers.
None of the city funding mechanisms require voter approval, but residents will still get a chance to weigh in. Bexar County commissioners on Tuesday put the county’s share of public funding on the Nov. 4 ballot.
Voters will be asked whether to raise the hotel portion of an existing county venue tax to 2%, which could be used to fund up to $311 million worth of the arena’s construction.
The Spurs have said they would pay $500 million toward the arena’s cost and cover any cost overruns. They also offered $60 million in community incentives.
A key part of the city’s funding scheme relies on Spurs Sports & Entertainment (SS&E) pairing with a developer to generate more property tax revenue within a tax increment reinvestment zone (TIRZ). SS&E Chief Legal Officer Bobby Perez told council members the team would guarantee $1.4 billion worth of nearby development by 2042, $500 million of which would be done by 2031.
Pushed by Jones on where the extra money would come from if the arena’s cost rose beyond $1.311 billion — the maximum combination of the city, county, and Spurs’ current, possible shares — Perez said that would be the team’s problem.
“If that’s all you’re going to put in, $500 (million), we’ve got to figure out how to get to $1.5 billion. That’s on us. Right? And we gotta go figure it out,” Perez said.
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