The San Antonio City Council approved a term sheet Thursday for a $1.3 billion Spurs arena downtown, overruling Mayor Gina Ortiz Jones in a decisive 7-4 vote. The approval moves the project forward despite calls for additional financial analysis and community input.
The new arena would replace the current Frost Bank Center when the team’s lease expires in September 2032. Construction is expected to take nearly five years, with the facility ready for the 2032-33 NBA season and accommodating 17,000 to 18,500 fans.
Under the approved term sheet, the city pledges $489 million toward the arena at the former Institute of Texan Cultures site. Bexar County would contribute up to $311 million, pending voter approval in November, while Spurs Sports & Entertainment commits $500 million plus cost overruns.
The county funding requires the only public vote in the financing structure. County officials plan to raise hotel occupancy taxes from 1.75% to 2% while maintaining rental car taxes at 5%.
“For me personally, it was important that we do our due diligence,” Mayor Jones told reporters after the vote. “I’m very concerned about the ways in which some voters have expressed their clear dissatisfaction with the way in which this process has been handled thus far.”
The Spurs organization plans $1.4 billion in additional development around the arena over 12 years. The team would also provide $75 million over 30 years for community benefits programs and $30 million for federal property acquisition.
More than 50 residents spoke before the vote, with most calling for delays until better financial data becomes available. Community groups criticized using public funds while San Antonio maintains one of the highest poverty rates among major US cities.
