SAN ANTONIO – San Antonio Spurs Chairman Peter J. Holt detailed his vision for Project Marvel, a proposed downtown sports and entertainment district anchored by a new NBA arena that could cost up to $1.5 billion.
The ambitious development, planned for the Hemisfair area, would rely on visitor taxes and private investment without increasing local resident tax burdens, Holt told KSAT in a recent interview at the Rock at La Cantera
“Our community deserves an urban core that is world-class and makes our community really proud, and is a beacon of unity, joy, accessibility, fun, excitement and economic development,” Holt said.
Estimated project costs align with recent NBA venues
The projected $1.3-$1.5 billion price tag aligns with the costs of recent NBA arena developments across the country.
Holt indicated the funding structure would mirror the successful public-private partnership used to build and maintain the Frost Bank Center, where the Spurs currently play.
“The formula has been mutually beneficial where visitors pay a fee when they come and rent a car or stay in a hotel,” Holt explained. “That money is dedicated to ensure we have world-class venues and can’t be used for anything else.”
Public-private partnership framework takes shape
The funding mechanism would leverage both local and state visitor tax revenues, combined with significant private investment from the Spurs organization. While specific financial commitments are still being finalized, Holt emphasized that local taxpayers would not face increased burden beyond existing venue taxes.
“The way it’s proposed today, absolutely not. The burden of the taxes and fees will be on visitors coming to Bexar County and coming to Texas,” Holt said, adding that complete financial details will be available ahead of a possible November public vote.
Additional funding sources under consideration include special tax zones, arena lease revenue, and ground leases for nearby private development, according to city officials.
Strategic importance for NBA’s small-market franchise
As one of the NBA’s smallest markets, Holt stressed the strategic importance of a downtown arena for the franchise’s long-term sustainability.
“For us to ensure that same success going forward, we need a world-class home for our great players to thrive in, for our fans to be excited about, and for our business to be sustainable,” Holt said.
Long-term commitment to San Antonio
Addressing speculation about the franchise’s future, Holt emphasized his family’s nearly 30-year tenure as controlling owners of the Spurs, contrasting with ownership changes at 26 other NBA franchises during that period.
“The Holt family is incredibly invested in San Antonio and the Spurs. Our other family business has been headquartered here for 92 years,” Holt said. “We want to make sure that the positive impact is lasting.”
The project timeline calls for financial details to be finalized within 60 days.
A potential $175 million tax proposal Bexar County voters could be asked to consider in November, though, it is just one of several funding streams being considered.
City and county officials are working with the Spurs organization to structure the development plan and associated funding mechanisms.
Watch KSAT’s full interview with Peter J. Holt in the video player below.
