San Antonio TX, August 19, 2025
News Summary
The San Antonio City Council is preparing to vote on a term sheet for a proposed new Spurs arena downtown, part of a larger sports and entertainment district. The arena is expected to seat 17,000 to 18,500 fans and cost approximately $1.3 billion. Funding commitments would involve the Spurs contributing $500 million, with additional funds from Bexar County and the City of San Antonio. The project aims for completion by the start of the 2032-33 NBA season, assuming approvals are secured.
San Antonio — The City Council is set to vote on a term sheet outlining a plan to build a new downtown Spurs arena, a central element of a broader downtown sports and entertainment district that also would expand the Henry B. González Convention Center, convert a federal courthouse into a live music venue, and renovate the Alamodome. The proposed arena would seat between 17,000 and 18,500 people and is estimated to cost about $1.3 billion. Design and construction are expected to take up to 57 months, targeting completion by the start of the 2032-33 NBA regular season, a timeline that aligns with the end of the Spurs’ current lease at the Frost Bank Center.
Key financial commitments and funding structure
The funding framework in the term sheet assigns costs among multiple parties. The Spurs would contribute $500 million toward construction. Bexar County would provide $311 million drawn from venue tax revenue, subject to voter approval in November. The City of San Antonio would provide up to $489 million through bonds backed by state hotel revenues and the downtown Tax Increment Reinvestment Zone (TIRZ). The term sheet requires the Spurs to cover any cost overruns during construction.
Project scope, site and development plan
The proposed arena site is in the area of the former Institute of Texan Cultures, where the city holds the first option to sell or lease. The term sheet links the arena to a wider private development effort valued at $1.4 billion that would include housing, retail and office space. The Spurs and private partners are expected to deliver a first phase of development worth $500 million by the time the arena opens. The Spurs also would commit $2.5 million annually for community benefits and would oversee a mentorship program for small businesses participating in the construction work.
Facility standards and long-term obligations
The term sheet requires the arena to be renovated between the 13th and 15th years of operation to maintain its status as a state-of-the-art NBA facility. The agreement also sets construction timelines that, if met, would complete the new arena by the opening of the 2032-33 season, matching the expiration of the Spurs’ Frost Bank Center lease, which opened in October 2002.
Political context and next steps
Negotiations over the term sheet have created a split between the mayor and a majority of the City Council. The mayor is pushing to delay negotiations until the city receives a new financial analysis of the arena, while a majority of council members appear inclined to move forward with voting on the term sheet rather than postponing the decision. The Bexar County funding piece remains conditional on a November voter approval of the proposed venue tax revenues.
Schedule and conditions to proceed
If the City Council approves the term sheet, the parties would continue negotiations toward final agreements and begin the design and permitting process. The term sheet sets clear conditions: the Spurs pay for overruns, complete the required mentorship and community benefit programs, and ensure private development partners deliver the initial $500 million phase by arena opening.
The vote by the City Council will determine whether the project advances into detailed contract negotiations, design and permitting phases. The project timeline and financing hinge on multiple approvals, including the county voter referendum in November and the City’s bond issuance supported by hotel revenues and the downtown TIRZ.
FAQ
What is the City Council voting on?
The City Council is voting on a term sheet between the City and the Spurs that outlines financing, timelines, responsibilities and related development for a proposed downtown Spurs arena and an associated sports and entertainment district.
How much will the arena cost and who pays?
The arena is estimated to cost about $1.3 billion. The Spurs would pay $500 million, Bexar County would contribute $311 million pending voter approval, and the City would provide up to $489 million via bonds backed by state hotel revenues and the downtown TIRZ.
When would the arena be completed?
Design and construction are expected to take up to 57 months, targeting completion by the start of the 2032-33 NBA regular season, which aligns with the end of the Spurs’ current lease at the Frost Bank Center.
Where would the arena be built?
The proposed site is in the area of the former Institute of Texan Cultures, where the city has the first option to sell or lease the property.
What are the Spurs’ additional commitments?
The Spurs would be responsible for any construction cost overruns, contribute $500 million to construction, commit $2.5 million annually to community benefits, oversee a small-business mentorship program, and partner on private developments totaling about $1.4 billion.
Are there renovation or maintenance requirements?
The term sheet requires the arena to be renovated between the 13th and 15th years of operation to maintain NBA facility standards.
What actions could delay the project?
The mayor is pushing for a delay pending a new city financial analysis, and Bexar County funding is contingent on voter approval in November, which could affect the schedule and financing.
Key project features
| Feature | Details |
|---|---|
| Estimated cost | $1.3 billion |
| Seating capacity | 17,000–18,500 seats |
| Spurs contribution | $500 million plus responsibility for cost overruns |
| Bexar County contribution | $311 million (venue tax revenue, pending voter approval) |
| City contribution | Up to $489 million via bonds supported by state hotel revenues and downtown TIRZ |
| Site | Area of the former Institute of Texan Cultures (city has first option) |
| Construction timeline | Up to 57 months; target: start of 2032-33 NBA season |
| Community commitments | $2.5 million annually from Spurs; small-business mentorship program |
Project timeline (key milestones)
| Date / Period | Event | Status / Source |
|---|---|---|
| Current | City Council scheduled to vote on term sheet | Pending council decision |
| November (voter referendum) | Bexar County venue tax contribution subject to voter approval | Pending voter approval |
| Post-approval | Design, permitting and construction (up to 57 months) | Contingent on approvals and final agreements |
| Start of 2032-33 NBA season | Targeted arena opening | Target completion date aligned with Frost Bank Center lease end |
| Years 13–15 after opening | Required major renovation to maintain NBA standards | Obligation in term sheet |
Funding breakdown (visual)
Seating capacity range (visual)
Deeper Dive: News & Info About This Topic
HERE Resources
Texas Leads Nationwide in Retail Construction Growth
San Antonio Mayor Requests Delay in Spurs Arena Negotiations
San Antonio City Council to Vote on Spurs Arena Funding
Mayor Proposes Pause on Spurs Arena Funding Decision
San Antonio Mayor Urges Delay on Arena Funding Vote
Mayor Calls for Delay on Spurs Arena Funding Vote
San Antonio Mayor Calls for Economic Study on Arena Funding
San Antonio City Council to Vote on New Spurs Arena
San Antonio Council Prepares for Vote on Downtown Arena Project
San Antonio Seeks Community Input on Project Marvel
Additional Resources
- San Antonio Express News
- Wikipedia: San Antonio Spurs
- KSAT News
- Google Search: San Antonio Spurs new arena
- KENS 5
- Google Scholar: San Antonio Spurs arena construction
- iHeart Radio
- Encyclopedia Britannica: San Antonio Spurs
- Fox San Antonio
- Google News: Spurs new arena
Author: STAFF HERE SAN ANTONIO WRITER
The SAN ANTONIO STAFF WRITER represents the experienced team at HERESanAntonio.com, your go-to source for actionable local news and information in San Antonio, Bexar County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as Fiesta San Antonio, San Antonio Stock Show & Rodeo, and Dia de los Muertos. Our coverage extends to key organizations like the Greater San Antonio Chamber of Commerce and United Way of San Antonio and Bexar County, plus leading businesses in retail, insurance, and energy that power the local economy such as H-E-B, USAA, and Valero Energy. As part of the broader HERE network, including HEREAustinTX.com, HERECollegeStation.com, HEREDallas.com, and HEREHouston.com, we provide comprehensive, credible insights into Texas's dynamic landscape.
