Long story short
Two conflicting resolutions were considered by the City Council during the meeting. One was to authorize negotiations and execute a nonbinding term sheet with the San Antonio Spurs, and the other was a resolution to not consider the proposed terms sheet without further due diligence.
San Antonio Mayor Gina Ortiz Jones has maintained that the city is moving too fast with a once-in-a-generation project.
The resolution, backed by Jones, would pause any negotiations with the Spurs until the city conducts an independent economic impact study for the proposed Spurs arena, which would be on par with the economic impact the city of Philadelphia received in 2024 and would focus on the impact to the city’s general fund. Additionally, each City Council member would be required to host at least two in-person, publicly announced engagements with their constituents to receive feedback on the economic impact study and any proposed term sheets.
The second resolution authorizes Erik Walsh, San Antonio city manager, to complete negotiations with the Spurs and execute a nonbinding term sheet with the team. According to city documents, the terms would remain substantially similar to the current posted draft term sheet.
Prior to the City Council discussion, Jones argued that the process has been rushed and that the city has five months before a vote is needed.
“I am very concerned ... that if the public does not trust this process, they may not come out and support the county's vote ... [and] I don't know what would happen if that all fails. So ... we help our community by showing them that we've done our due diligence, we've gone out and got the independent data that corroborates or maybe shows a difference in what we've been presented,” Jones said.
After making a motion to consider her resolution to pause the negotiations, Jones asked Peter Holt, majority owner of the Spurs, if the team would consider waiting while the city performs further due diligence.
Holt argued that the current economic impact study is sufficient, and shows the level of commitment of the team and the benefits of the construction of a new arena.
“We believe that there's tremendous data already existing, which shows a really big economic impact and improvement to the urban core in the independent study by CSL that the city staff used validated those numbers, which is the same group that did that economic impact study in Philadelphia as well,” Holt said.
Jones said due diligence is not anti-progress, but anti-poverty. She said the extra due diligence allows the city to take into account a series of economic factors, such as federal cuts to Medicare, Medicaid, SNAP and Social Security.
Additionally, she argued that an independent economic study could be completed, and the city could receive public input before the February 2026 deadline to call for the $220 million-$250 million May bond election.
Further economic impact study would answer:
- Whether or not San Antonio can support this number of arenas
- What is the impact to the general fund
- Can the city support the number of arenas given the size of the city’s corporate base and the number of high-income and low-income populations
The vote to authorize Walsh to enter into negotiations with the Spurs passed 7-4, with Jones, District 2 council member Leo Castillo-Anguiano, District 5 council member Teri Castillo and District 6 council member Ric Galvan voting against.
What they said
During City Council discussion of both agenda items, Whyte, Spears and Gonzalez said voters needed to have fuller information before going to the polls in November.
“Seventy-five days from today, If my math [is correct] the voters are going to the polls no matter what,” Whyte said. “And we have heard multiple times from staff and the Spurs themselves that that vote is going to determine whether or not this project moves forward. It's democracy in its purest form, and it's our job to make sure that the citizens have all the information before they go and take that vote.”
Whyte also said the development this project would bring to downtown would be incredibly beneficial to the city.
“There is no doubt in my mind that having an elite arena downtown with the over billion dollar guarantees that the Spurs have made in terms of developing around [the] arena that we will have an economic development success right here in San Antonio,” Whyte said.
Spears asked Walsh a series of questions to emphasize that approving the term sheet will give voters more information when they go to vote in November.
“To be clear, the voters are going to go [vote] on Nov. 4 on the county portion regardless of what we do,” Spears said. “So if we don’t have the term sheet then our residents will not have adequate information on what [the city’s] portion [is] before they go to the polls.”
Gonzalez agreed with other council members' assessment of the importance of providing residents with as much information as possible. She also emphasized the importance of the Spurs to San Antonio’s identity.
“The tourism and hospitality industries continue to be a critical part of our local economy, and such a deal will keep visitors coming from all parts of the world. The Spurs are not just a basketball team, they're a global brand and a cornerstone of San Antonio's identity,” Gonzalez said. “This term sheet provides a full picture of how this project will be funded by the Spurs, the city and the county, and Bexar County voters should be able to cast their ballots in November knowing that what portion of the venue tax will cover this project. ... It's important that we finalize a term sheet to give voters the information that they need in a timely manner to make a sound decision.”
Jones said she will be seeking City Council support for an ordinance to place the city’s revenue bonds that will be used for the city’s contribution to the project to a public vote.
“I understand we may not know what that amount may be just yet, but I do want to manage the expectations of my colleagues that I will be seeking their support for such an ordinance,” Jones said. “This is a public opportunity, not only to vote on the county’s contribution but on the city’s contribution as well.”
The conditions
An economic impact was completed by the Spurs in January and shared with the City Council in July. The term sheet commits $489 million in funding from the city, up to $311 million from the county and $500 million from the Spurs as well as 100% of cost overruns.
Other term sheet provisions include:
- Spurs will retain naming and advertising/signage rights to the district areas excluding the arena, remaining arena site and private development areas
- City to acquire Institute of Texan Cultures property from The University of Texas System, federal property from the U.S. General Services Administration and extend the term of the Hemisfair tax increment reinvestment zone
- Property acquisition from GSA to be funded from Spurs up-front contribution, with the land to be owned by the City and ground leased to private developers
Zooming out
Walsh will work to finalize negotiations for the construction of an approximately 17,000-to-18,500-capacity NBA basketball arena, with amenities including concessions, merchandising opportunities, premium seating, meeting space and suites.
Design and construction of the arena is expected to take up to 57 months, with a completed facility delivered for Spurs and fan use by the start of the 2032-33 NBA regular season.
According to city documents, the Spurs will be responsible for the development, design and construction of the new arena. However, the city will retain its rights to review the design and construction of the arena and approve other construction components under its governmental function, such as issuing permits and inspections.
Upon completion, a city-controlled subsidiary or affiliate, with county participation, will own the arena site and the arena. The arena owner will lease the arena to the Spurs for a term of 30 years, or 30 full basketball seasons, whichever is longer. The Spurs will pay an initial annual rent of $4 million, commencing upon the completion of construction of the arena, with an annual rent increase each year by 2%.
Looking ahead
Any agreement between the city and the Spurs is contingent upon the approval of a venue tax by Bexar County voters Nov. 4.
