SAN ANTONIO – A new San Antonio Spurs arena could cost $1.2 billion to $1.5 billion, according to a city estimate, but there is still no breakdown of how it will be paid for.
The San Antonio City Council is considering a non-binding memorandum of understanding (MOU) with the NBA team and Bexar County to help figure out a funding plan. The MOU is more permission to work toward a deal than a deal itself.
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The city has projected costs for about half the projects in its vision for a downtown sports and entertainment district, known as “Project Marvel,” including the arena.
The combined price tag currently exceeds $2.75 billion, though the final cost will likely be higher, since several of the listed projects don’t even have cost projections: a “revised” plan for the Alamodome, a new land bridge across IH-37, the acquisition of a former federal courthouse, and the related infrastructure needed to support the district.
City staff have laid out possible funding sources, both public and private, for each portion of Project Marvel. However, the exact breakdowns — especially for projects drawing money from multiple places — remain unclear.
The city and Spurs began quietly discussing a downtown move in early 2023, though the city did not unveil its Project Marvel plans until November 2024.
The Spurs organization has stayed largely silent through the public discussions about a new arena. Bobby Perez, the chief legal officer and general counsel for Spurs Sports & Entertainment, told council members Wednesday “we can commit to participating in future public conversations."
However, he refused to comment when KSAT approached him after the meeting.
KSAT asked City Manager Erik Walsh if the $3.85 billion franchise had said how much it was willing to spend, or if the team was waiting to see how much public money it could get before committing its own.
“I think they’re waiting for us to be prepared to have those substantive conversations,” Walsh said. “And today — or tomorrow is an important step for us in terms of at least having a memorandum of understanding with all the parties on the framework moving forward."
Sports District One Pager by Spencer Heath on Scribd
Though Bexar County Commissioners already approved a version of an MOU in a 4-1 vote, the city council’s scheduled vote for Thursday morning won’t be on the exact document but rather allowing Walsh to negotiate and sign onto an MOU.
The county-approved memorandum, which city staff and council members referenced in their conversation Wednesday, covers not only the arena, but also the wider Project Marvel, and the county’s priority of fixing up the Frost Bank Center Freeman Coliseum and redeveloping the surrounding East Side area.
County officials have said they plan to fund the work around the Freeman Coliseum Grounds with a county venue tax on hotel stays and car rentals, which the Spurs also hope to use.
Under the county-approved MOU, voters could be asked to approve using the tax in a November election. County Judge Peter Sakai said
The MOU also states, “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 would be on the table.
Turning the city-owned Willow Springs Golf Course next to the Frost Bank Center over to Bexar County is also part of the MOU discussion, though several council members during Wednesday’s council discussion spoke against the idea.
Read the proposed MOU below:
Mou by Spencer Heath on Scribd
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