San Antonio, TX, August 20, 2025
News Summary
The San Antonio City Council is set to vote on a term sheet for a proposed $1.3 billion arena for the Spurs. This decision is crucial as it involves long-term financing that could impact the city’s future finances and development. Project Marvel, which includes the new arena, aims to reshape downtown San Antonio while ensuring visitor-based funding minimizes the tax burden on residents. The meeting will also address community concerns and the importance of public input before moving forward.
San Antonio — City Council to vote Thursday on $1.3 billion Spurs arena term sheet amid calls for pause
The San Antonio City Council is scheduled to vote Thursday on whether to approve a term sheet for a proposed $1.3 billion downtown arena for the San Antonio Spurs. The decision would commit the city to a multi-decade financing and development plan that city leaders say could shape the city’s finances and downtown for generations.
Key decision and immediate stakes
The term sheet would move forward a plan under Project Marvel, a broader multi-billion-dollar sports and entertainment district that includes the new arena, a renovated Alamodome, an expanded Convention Center, and the refashioning of the John H. Wood Jr. Federal Courthouse into an event venue. The proposed arena is planned for the former Institute of Texan Cultures site and would seat between 17,000 and 18,500 spectators.
The total project cost for the arena is estimated at $1.3 billion. Funding in the current term sheet is split with Spurs Sports & Entertainment committing at least $500 million and agreeing to cover any cost overruns. The city’s direct share is $489 million, while Bexar County could contribute up to $311 million if county voters approve tax measures this November.
How the financing is expected to work
Local leaders plan to back the city’s portion with bonds. Those bonds would be repaid through a combination of the Spurs’ lease payments and revenue from surrounding developments tied to the project. The Spurs’ lease obligation in the plan would include an annual base rent of $4 million with a 2% annual increase over a 30-year lease. The team would also provide $75 million over the lease term for community benefits, with the council to decide how those funds are used.
Proposed tax sources to fund the county’s portion include taxes paid by visitors, specifically increased hotel occupancy taxes and maintained rental car taxes. City and Spurs officials have described the proposed visitor-tax funding model as one that places much of the financial burden on non-residents and tourists rather than city taxpayers.
Major contingencies and voter role
The plan’s progress depends on several contingencies. Bexar County’s contribution requires voter approval of tax measures in November; if that county funding does not pass, the project may not proceed as currently structured. The City Council will also consider additional resolutions related to Project Marvel during the Thursday meeting and intends to inform constituents about project details ahead of the November vote.
Schedule, construction timeline and capacity
Project planners estimate construction would take about 57 months, roughly five years, targeting completion by the beginning of the 2032–33 NBA season if the timeline holds. The arena’s expected seating capacity is between 17,000 and 18,500 spectators, with associated infrastructure improvements proposed for the surrounding area. Some of those ancillary improvements are not being recommended for the upcoming November ballot.
Political context and outstanding questions
The vote comes amid public debate and political tension. The mayor has requested a pause to obtain an independent economic impact report and to hold more public meetings so residents and officials can review assumptions and potential impacts. One recent town hall produced a public disagreement between the mayor and a council member over how the project was discussed during the event. The mayor is also seeking clarity on whether a portion of the Spurs’ revenue could be shared with the city to help address a city budget deficit.
Project backers point to visitor-based taxes and private contributions as key reasons the deal could limit direct property-tax impacts for residents. Opponents and some city leaders want further analysis of long-term financial risks, potential cost overruns, and how surrounding development revenues would perform before committing city backing.
What the council will consider Thursday
- Approval or rejection of the arena term sheet that sets financial commitments and key lease terms.
- Resolutions related to Project Marvel components beyond the arena.
- Plans for outreach and reporting to constituents ahead of the November voter decision on county taxes.
Key features at a glance
| Feature | Detail |
|---|---|
| Project name | Project Marvel (sports and entertainment district) |
| Arena cost | $1.3 billion |
| Spurs contribution | At least $500 million and cover overruns |
| City contribution | $489 million (bond-backed) |
| Bexar County contribution | Up to $311 million (requires voter approval) |
| Lease | 30 years; $4 million annual rent, 2% annual increases |
| Community benefits | $75 million over lease term (details to be decided by council) |
| Capacity | 17,000–18,500 seats |
| Expected completion | By 2032–33 NBA season (subject to approvals and timeline) |
Timeline
| Date / Time | Event | Status / Source |
|---|---|---|
| Thursday (City Council meeting) | Council vote on arena term sheet and related Project Marvel resolutions | Council agenda |
| Recent (prior to vote) | Mayor requested pause for independent economic impact report and more public meetings | City statements |
| Recent (prior to vote) | Town hall produced disagreement between mayor and council member | Public meeting reports |
| November (upcoming) | Bexar County voter decision on hotel tax increase and rental car tax measure | County ballot (voter approval required) |
| 2027–2033 (approx.) | Estimated construction window (57 months) targeting 2032–33 season opening | Project schedule |
Funding breakdown (visual)
The following horizontal bars represent the proposed funding split of the $1.3 billion arena cost.
Capacity visual
Proposed seating range for the arena (scale to 20,000 seats).
Frequently Asked Questions
What is the City Council voting on Thursday?
The council will vote on whether to approve a term sheet for a proposed $1.3 billion Spurs arena and consider related resolutions for Project Marvel.
How much will the new arena cost and who pays?
The arena is estimated to cost $1.3 billion. Spurs Sports & Entertainment would contribute at least $500 million and cover overruns, the city’s share is $489 million, and Bexar County could contribute up to $311 million pending voter approval.
Where will the arena be built and how many seats will it hold?
The proposed site is the former Institute of Texan Cultures and the arena would seat between 17,000 and 18,500 spectators.
When would construction occur and when would the arena open?
Construction is estimated to take about 57 months, with a target opening by the start of the 2032–33 NBA season if approvals and schedules hold.
Does the public vote matter?
Yes. Bexar County’s funding depends on voter approval of tax measures in November. If county funding does not pass, the project may not proceed as proposed.
How will the city repay its share?
The city plans to back its portion with bonds repaid through the Spurs’ lease payments and revenue from surrounding developments tied to the project.
Are there community benefit commitments?
Yes. Spurs Sports & Entertainment would provide $75 million over the 30-year lease to support community benefits, with council members to decide allocation details.
Why has the mayor requested a pause?
The mayor is seeking an independent economic impact report and additional public meetings to review financial assumptions and potential impacts, and to explore whether a portion of Spurs revenue could help the city budget.
Deeper Dive: News & Info About This Topic
HERE Resources
San Antonio City Council Approves $4 Billion Budget Plan
Mayor Urges Delay on Arena Agreement Vote in San Antonio
Potential Delay for San Antonio’s Project Marvel Arena
San Antonio Spurs Propose $2.1 Billion Arena Project
Texas Retail Construction Sector Sees Significant Growth
San Antonio Spurs Move Forward with Project Marvel Arena Proposal
San Antonio City Council To Vote On New Spurs Arena Plan
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San Antonio Mayor Requests Delay in Spurs Arena Negotiations
San Antonio City Council to Vote on Spurs Arena Funding
Additional Resources
- San Antonio Express-News
- Wikipedia: San Antonio Spurs Arena
- San Antonio Current
- Google Search: San Antonio Spurs new arena
- KSAT News
- Google Scholar: San Antonio Spurs arena economic impact
- Sports Business Journal
- Encyclopedia Britannica: San Antonio Spurs arena
- News 4 San Antonio
- Google News: San Antonio Spurs 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.
