San Antonio, August 26, 2025
News Summary
The San Antonio City Council has moved forward with a $1.3 billion funding agreement for a new Spurs arena at Hemisfair, despite opposition from the mayor. The deal entails a combination of contributions from the city, county, and Spurs Sports & Entertainment, and is contingent on voter approval of a tax increase. Critics expressed concerns over the approval process and called for more public input, while supporters argue it will spur economic development in the area.
San Antonio
San Antonio City Council Approves $1.3 Billion Spurs Arena Funding Deal Over Mayor’s Objection
The San Antonio City Council approved funding terms for a new $1.3 billion Spurs arena to be built at Hemisfair, despite opposition from the mayor and some community members. The council rejected a mayoral proposal to delay approval until an independent economic impact report could be completed, then voted to approve the funding package by a 7-4 margin after discussion. Initial procedure to block the immediate approval failed by a 4-7 vote without further deliberation.
Key decisions and financial terms
- The approved deal calls for $489 million in city funding and up to $311 million from Bexar County.
- Spurs Sports & Entertainment will contribute at least $500 million and will be responsible for any cost overruns.
- The Spurs committed to guaranteeing $1.4 billion in nearby development over a 12-year period, including office space, retail, housing, and a boutique hotel.
- City financing for its share is planned to be backed by bonds that will be repaid using revenue from leasing the new arena and surrounding developments.
- The agreement is contingent on voter approval of a ballot measure scheduled for November 4 that would increase the hotel portion of the venue tax to fund the project.
Political context and timeline considerations
The Mayor pushed to delay council action until an independent economic impact analysis was available and said she intends to pursue a bond election for the city’s share in either May or November 2026. Critics raised concerns about the pace of the approval process and what they described as insufficient public input. Some council members and community members expressed concern about the transparency of negotiations and questioned the economic studies used to justify public investment, particularly one performed by a consultant with ties to the Spurs organization. Supporters included business leaders, community groups, and Spurs representatives who argued the project would bring development and economic activity.
Project scope and site
The arena is planned for the former Institute of Texan Cultures building at Hemisfair as part of a broader initiative known as Project Marvel, which aims to create a larger sports and entertainment district. Economic impact studies cited by supporters forecast significant increases in net spending for both the city and the county. Public comment during council meetings was large and mixed: business supporters urged quick approval, while opponents questioned the use of public funds and sought more time for scrutiny.
What the approval means next
The council’s vote moves the funding agreement forward but does not finalize construction. The funding plan depends on voter approval of the November 4 ballot measure. If voters approve the tax change, city and county funding commitments would proceed under the agreed terms and the Spurs would begin development steps. If voters reject the measure, the funding structure as approved by the council would not be in place and the project’s future would be uncertain. Some council members have indicated concern that protracted delays could increase the risk of the Spurs considering relocation options.
Key features at a glance
| Feature | Detail |
|---|---|
| Project name | New Spurs Arena at Hemisfair (part of Project Marvel) |
| Total estimated cost | $1.3 billion |
| City contribution | $489 million (via bonds repaid by lease and development revenue) |
| County contribution | Up to $311 million |
| Spurs contribution | At least $500 million and responsible for overruns |
| Site | Former Institute of Texan Cultures Building at Hemisfair |
| Contingency | Voter approval of a hotel portion venue tax increase on November 4 |
Timeline
| Date / Time | Event | Status / Source |
|---|---|---|
| Recent council meeting (vote date) | Council voted 4-7 against delaying approval; then voted 7-4 to approve funding terms | Council action: Approved funding terms |
| November 4 | Ballot measure to increase hotel portion of venue tax (voter approval required) | Contingent on voter approval |
| May or November 2026 | Potential bond election proposed by the Mayor for the city’s share | Mayor plans to pursue bond election |
Simple visual charts
Funding share (approximate)
Council vote distribution
FAQ
What did the City Council approve?
The City Council approved funding terms for a new $1.3 billion Spurs arena at Hemisfair, including a $489 million city contribution and up to $311 million from Bexar County, conditional on voter approval of a venue tax change.
How much will the Spurs contribute?
The Spurs will contribute at least $500 million and will cover any cost overruns. They also pledged to guarantee $1.4 billion in nearby development over 12 years.
Is the deal final?
The deal is contingent on voter approval of a ballot measure set for November 4 to increase the hotel portion of the venue tax. If voters do not approve the measure, the funding structure will not be finalized as agreed by the council.
Why did the Mayor oppose immediate approval?
The Mayor proposed delaying approval until an independent economic impact report could be obtained and has expressed concerns about the speed of the approval process and the level of community feedback. She intends to pursue a bond election for the city’s share in May or November 2026.
What concerns have critics raised?
Critics questioned the transparency of negotiations, the rapid timetable for approval, and the economic studies used to support the project, noting that one consultant involved had affiliation with the Spurs organization.
Where will the arena be built?
The proposed site is the former Institute of Texan Cultures building at Hemisfair, and the arena is part of a larger development initiative called Project Marvel.
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Additional Resources
- KSAT News: Council Shoots Down Mayor’s Request
- Wikipedia: San Antonio
- San Antonio Current: Mayor Hijacks Project Marvel Conference
- Google Search: San Antonio Spurs Arena
- KENS5: City Council Approves Spurs Arena Vote
- Google Scholar: Project Marvel Spurs
- Sports Illustrated: What’s Next for Spurs Project Marvel
- Encyclopedia Britannica: Project Marvel
- Express News: San Antonio Spurs Arena City Council
- Google News: San Antonio Spurs Project Marvel
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.
