SAN ANTONIO – San Antonio Mayor Gina Ortiz Jones is trying to put pressure on council members ahead of a pair of critical votes to determine the city’s next steps for funding a new downtown Spurs arena.
In a Monday afternoon news conference on the steps of City Hall, Jones continued to push for the city to hold off on approving a non-binding set of terms for funding the $1.3 billion arena until it has an “independent economic impact study” and meetings in each council district to get community feedback.
Jones said the only information on an arena’s possible benefits has come from a study commissioned by Spurs Sports & Entertainment.
“This is not a hard ask, right?” Jones said, flanked by members of multiple community groups critical of Project Marvel. “I think I have been very clear that I want the Spurs here. I want a good deal, and I think we can confidently, you know, work with the community if we have confidence in the data.”
City staff and the Spurs have hammered out the funding terms, but Jones is clashing with other council members over whether to execute the non-binding set of terms now or hold off. Both options were added to Thursday’s council agenda after the mayor and council members on the other side pushed for them Sunday night.
It’s not clear how much support Jones has on the council. She’ll need five other votes on the 11-member council to get her way.
She was joined Monday by District 2 Councilman Jalen McKee-Rodriguez and District 6 Councilman Ric Galvan, but she was in the clear minority during an Aug. 6 meeting when she first tried to push for a “strategic pause.”
City Manager Erik Walsh has also said five council members had contacted him about getting the term sheet onto Thursday’s agenda for a vote.
Jones did not directly answer questions on Monday about how she expects the meeting to go.
“I mean, we’ll see,” Jones said.
WATCH THE FULL PRESS CONFERENCE BELOW:
Regardless of what the city council decides, voters across Bexar County will be asked to approve the county’s share of funding in November, a key piece of the overall plan.
Some council members argue voters need to know the city’s terms before the election to make an informed decision, but Jones questions why there’s a rush.
She also tried to turn the attention to the council members who support moving ahead.
“People haven’t explained why anything is needed by the 21st,” she said. “I’m also very shocked that folks would want to move forward on this absent hearing from their constituents. I think their constituents are going to have something to say about $489 million.”
Before the press conference, Jones posted a video and photo on Instagram, calling on people to contact their council member and encourage them to support “my Resolution” on Thursday.
RC Buford, CEO of Spurs Sports & Entertainment, released the following statement following Jones’ press conference:
“We’re pleased to take this next step in the process, which will ultimately give the voters the opportunity to decide on the arena project this November. As part of the proposed term sheet, the Spurs total commitment will be $2.1 billion. What has been consistent throughout this process is our commitment to ensure no tax impact on San Antonio families and our assurance to cover 100% of any and all construction cost overruns. From our very first conversations with city leaders, this has always been about more than a venue. It’s about building a place that fosters opportunity, creates lasting memories and ensures San Antonio continues to thrive for generations to come.
We’re grateful to the San Antonio City Council, City Manager Erik Walsh, Judge Peter Sakai and the Bexar County Commissioners for the time and commitment they’ve invested in this process. Their leadership has been invaluable in helping us reach this milestone and we look forward to continuing this work together on behalf of the people of San Antonio and Bexar County.”
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:
READ THE DETAILS: San Antonio City Council goes head-to-head in dueling paths for Spurs arena next steps