SAN ANTONIO – The San Antonio City Council on Thursday could determine how the city proceeds with a deal to fund a new downtown arena for the Spurs: delay or dive in.
On Monday, two items related to Project Marvel showed up on the city council’s agenda.
- The first item is a resolution stating the City Council will not move forward on a proposed term sheet with the Spurs for a new arena downtown until the city receives an independent economic impact study.
- The resolution also requires each council member to host at least two in-person meetings with constituents to discuss the findings before moving forward.
- The second item is a resolution directing City Manager Erik Walsh to move forward and complete negotiations with the Spurs on the terms for the new proposed arena.
Mayor Gina Ortiz Jones asked Walsh to add the first resolution on Sunday night. Walsh told Jones and the council a few hours later that five council members had asked to have a vote on the term sheet.
Walsh had previously told council members a vote could come as early as Aug. 27.
Since an Aug. 6 meeting, Jones has been calling on the city to pause the project until it gets an economic impact study on the proposed project by a firm that does not have ties to the team.
CSL, the company that performed the previous impact study, is owned by Sixth Street, a company that is a partial owner of the Spurs. However, it did not conduct a study of the arena’s impact specifically. It looked at the impact of other projects within the sports and entertainment district and used findings from a study commissioned by the Spurs when discussing the arena’s impact.
“At this point, the only data that we have is from the Spurs’ consultant,” Jones said during a news conference on the City Hall steps Monday afternoon. “I think our community deserves an independent economic impact study. So that....if that comes back and says ‘you know what, Spurs numbers, those were actually right on,’ then great. And if it corroborates what they’ve put forward, then wonderful.”
“If something is different though,” she continued, “then we owe it to our community to explain what that discrepancy is based on. Okay, this is just basic due diligence.”
At the Aug 6 council meeting, Jones urged council members to hold off on approving the terms until a new study is done. However, at least seven of the 10 other council members indicated they wanted the city manager to move forward with negotiations.
Councilman Marc Whyte (D10) wants council members to push ahead with voting on the terms this Thursday. No matter what the council decides, he pointed out, Bexar County voters will head to the polls in November to decide on the county portion of the funding — a choice that he says could sink the entire arena project.
“I told the city manager that as quickly as we can get the details of this deal to the citizens so that they can have 75, 80 days to review it,” Whyte told KSAT on Monday. “All of us council folks are going to go into our districts, show our citizens the deal, talk to them about it, again, so they can make an informed decision when they go to the polls in November."
RC Buford, the CEO of Spurs Sports & Entertainment, released the following statement on Monday:
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The draft of the non-binding term sheet on Thursday’s agenda includes:
- TOTAL COST: Approximately $1.3 billion
- SIZE: 17,000 to 18,5000 capacity
- OPEN BY: 2032-2033 NBA season
- SPURS CONTRIBUTION: At least $500 million, plus any costs in excess of city and county contributions
- CITY OF SAN ANTONIO CONTRIBUTION: Up to $489 million or 38% of the arena cost, whichever is less, financed through Spurs lease of the arena, ground leases by developers, and tax capture zones for local property tax and hotel-related state taxes
- BEXAR COUNTY CONTRIBUTION: Up to $311 million or 25% of the cost, whichever is lower, from the Venue Tax, subject to voter approval
- 30-YEAR LEASE: Spurs to pay $4 million in rent (increasing 2% every year), and includes a non-relocation agreement for the term of the lease
- HOME-AWAY-FROM-HOME GAMES: “Spurs will have the ability to play home games at international sites and other neutral sites as required by NBA rules and regulations and up to four home games outside the Arena but in the Spurs’ home territory (which may include the Alamodome).”
- NEW DEVELOPMENT: Spurs and private developers to create $1.4 billion of new development over 12 years, including housing, hotel, retail, and offices
- COMMUNITY BENEFITS: Spurs to pay $2.5 million annually for a total of $75 million throughout the 30-year lease, with funding allocated by city council
- ENTRY CITY WAGE: Full-time employees at the arena would be paid at least the city’s entry wage
- COVERING FEDERAL PROPERTY PURCHASE: The Spurs will pay up to $30 million to help the city buy a federal administrative office building near the arena
- NO REVENUE SHARING: Jones has asked about revenue sharing, but Spurs officials have said they aren’t open to it under the current structure
- MID-LEASE RENOVATION REQUIRED: Future binding deals will include obligations to renovate the arena between the 13th and 15th year of operations, “subject to the Parties’ agreeing on a funding mechanism”
Read the full proposed term sheet below: