A venue tax could be the next play in San Antonio’s high-stakes arena game.
Bexar County officials are weighing a potential referendum to raise $450 million to support the city’s push for a new downtown arena for the San Antonio Spurs, the San Antonio Business Journal reported. Creating the countywide venue tax would require voter approval.
The city previously estimated the arena could cost between $1.2 billion and $1.5 billion.
However, the proposed tax faces a tangle of political and financial questions, including how much the Spurs will contribute financially.
An investment from the Spurs, controlled by Spurs Sport and Entertainment, will be key to moving the project forward, County Judge Peter Sakai said. He wants the franchise to infuse “as much as they can.”
November is the earliest date a venue tax could appear on ballots, although next May might be more likely given the number of “moving pieces.” Sakai said a decision on whether to move forward would likely come within the next month.
The San Antonio City Council approved of a funding framework tied to its broader sports and entertainment vision, dubbed Project Marvel. That plan includes a convention center expansion, Alamodome improvements and possibly the arena.
The city’s project finance zone could generate up to $2 billion in state hotel tax revenue over 30 years. That mechanism is expected to support the city’s share of the redevelopment, but it won’t be enough to fund an arena on its own.
Any funding package would likely cover multiple projects, not just a new stadium, Sakai said. County officials are eyeing significant upgrades to the Spurs’ current home, Frost Bank Center, and the Freeman Coliseum and surrounding rodeo facilities. That multipurpose approach could dilute the available funds for a new venue unless the Spurs offer up a sizable share of private investment.
City Manager Erik Walsh framed the investment as essential to keeping pace with peer cities, calling the finance zone “important to the convention center, the Alamodome and the arena.”
— Judah Duke
Read more
San Antonio taps $2B state tax funds for Spurs arena district
Spurs arena megadevelopment moves forward with judge’s ruling
Trump’s DOGE lists San Antonio building targeted for Spurs Arena plans
