SAN ANTONIO – A new San Antonio Spurs arena could cost $1.2 billion to $1.5 billion, according to a city estimate, and there is still no clear breakdown of how it will be paid for.
The San Antonio City Council will discuss a proposed memorandum of understanding with the team and Bexar County at a Wednesday afternoon meeting. The MOU includes a loose agreement to collaborate on several projects, including the arena and creating a funding plan.
You can watch the livestream of San Antonio City Council’s 2 p.m. B session in the video player above.
A city document attached to the agenda includes the first hard number of a new arena, as well as other projects in the wider sports and entertainment district the city envisions around Hemisfair, known as “Project Marvel.”
Altogether, Project Marvel would cost more than $2.75 billion under the city’s projections. It will likely be higher since half the listed projects don’t even have estimates attached: a “revised” Alamodome, a new land bridge across IH-37, the acquisition of key properties, and the related infrastructure developments.
The document lists several possible funding sources, both public and private, for each of the Project Marvel projects. However, no firm numbers or percentages are tied to any of them.
Sports District One Pager by Spencer Heath on Scribd
Fixing up the team’s current home, the county-owned Frost Bank Center, the Freeman Coliseum and redeveloping the surrounding East Side area are also included in the MOU, though the city document does not contain any analysis of their funding.
County officials, though, say they plan to fund it with the county’s venue tax on hotel stays and car rentals — something the Spurs also hope to use for the arena.
According to the MOU, “the Parties contemplate exploring opportunities for Team contribution, private equity, public private partnerships, and other private and public funding sources including the venue tax identified above.”
The MOU also states the city, county, and team will work to create a funding plan that does not use city or county general tax dollars.
However, other property and hotel-related tax dollars captured through special financing zones are on the table.
The transfer to the county of the city-owned Willow Springs Golf Course next to the Frost Bank Center is also part of the discussions.
County commissioners already approved the MOU in a 4-1 vote Tuesday. County Judge Peter Sakai emphasized afterward that “there is no deal.”
“This will start the negotiations in regard to the city, the county and the Spurs in regard to the projects that we have listed in the memorandum of understanding," Sakai said.
Read the proposed MOU below:
Mou by Spencer Heath on Scribd
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