The overview
According to city documents, the city originally created a project financing zone on Dec. 12, 2023, in order to take advantage of a new funding option available after the passage of Senate Bill 2220 during the 88th legislative session. The original PFZ designated the Alamodome and the Henry B. Gonzalez Convention Center as qualifying projects.
A PFZ allows the city to create a 3-mile zone centered around a convention center facility or venue and collect incremental state-associated hotel occupancy tax revenue over a 30-year period and use it for projects within the zone.
As plans for the proposed sports and entertainment district took shape, city officials searched for a way to modify the existing PFZ so the captured revenues could be used for the new NBA arena. City officials’ solution to the issue was to dissolve the current PFZ, create a new one and designate the convention center as the sole project in the new PFZ.
According to city documents, the new convention center complex would be composed of the Henry B. Gonzalez Convention Center, the Alamodome and the new sports arena.
The action taken
Established in 2025, the new PFZ would begin capturing the state’s growth in hotel associated revenues over a 30-year period, beginning in the calendar year 2026.
According to city documents, any growth within the 3-mile radius of the convention center would be held in a suspense account by the state comptroller until the submission by the city of its commencement of the project.
Upon fulfilling the requirement of beginning the project within a five-year period, the city would gain access to the PFZ funds. These funds would be able to be used for any of the three facilities.
According to city documents, the creation of the PFZ does not commit the city to funding these projects but instead makes a new financial tool available to the city.
