SAN ANTONIO – The Spurs’ season is over, but the team’s owners will have another matchup on which to concentrate soon.
Despite the San Antonio City Council approving the non-binding framework of a deal to fund a new $1.3 billion NBA arena with the Spurs and Bexar County 10 months ago, City Manager Erik Walsh said the city and Spurs “haven’t really started negotiating.”
The new arena, planned for the former site of the Institute of Texan Cultures at the southeast corner of Hemisfair, is the cornerstone of the city’s wider plans for a sports and entertainment district.
But Walsh said the city is primarily waiting to understand the costs and revenue opportunities tied to the district before sitting down with the Spurs.
The city council approved a $350,000 contract last month to look at how much it will cost to provide core city services to the area, including police, fire, traffic, and park maintenance, as well as any new revenue opportunities.
“We need that so that when we negotiate with the Spurs — much like the Alamodome and the convention center — those events pay for those services; that’s not borne by general taxpayers,” he said.
The study is expected to be done in September, Walsh said, and the city hopes to bring a final deal back to the council by the end of 2026. Bexar County would also have to be part of the agreement, because of their share of the funding.
In the meantime, the city’s also working on buying up some key properties.
The city anticipates closing on a cluster of federal properties near the proposed arena site next month, which it needs for mixed-use development meant to help fund its share of the arena with new property tax revenue.
The $30 million price tag and closing costs up to $120,000 are being footed by the Spurs.
The federal building on East César E. Chávez Boulevard and two parking lots across the street would be owned by the city. However, the Spurs would have the development rights “through the district process,” city staff said during a council meeting Wednesday.
The city still needs to buy the actual arena site, which is owned by the University of Texas System. It’s currently being appraised, staff said, but is expected to cost the city about $60 million.
The city expects to pay for it using funds from the Midtown Tax Increment Reinvestment Zone (TIRZ) — a special district that captures a portion of local property taxes to be used for new development in the area.
The city expects to close on that property by the end of the year.
The city council will vote Thursday on a $500,000 contract for a study on downtown accessibility and mobility.
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