Texas county makes initial move to help fund San Antonio sports arena

A push to build an arena for the National Basketball Association’s San Antonio Spurs is gaining momentum with the Bexar County Commissioners Court taking an initial step on Tuesday toward using venue taxes to help finance the project.

Commissioners agreed to seek approval from the Texas comptroller to hold a November election on raising the county’s hotel occupancy tax rate to 2% from 1.75% and continuing its 5% motor vehicle rental tax. 

“I want to make sure it is clear we have not committed to a deal,” said Bexar County Judge Peter Sakai, who heads the commissioners court. “All we’re doing is taking things in a process so ultimately we can have a vote to the community (on) this arena issue.”

Commissioners have until Aug. 18 to put a referendum on the Nov. 4 ballot. 

Revenue from the county taxes and from project financing and tax increment reinvestment zones in San Antonio, along with a yet-to-be disclosed contribution from the Spurs would fund a $1.2 billion to $1.5 billion downtown arena, according to a June 4 city presentation. 

The financing plan calls for the issuance of revenue bonds, as well as the potential sale of general obligation bonds to fund $220 million to $250 million in infrastructure improvements.

The arena would be part of a 25-acre sports and entertainment district that would also include a $750 million expansion of the Henry B. Gonzalez Convention Center, an upgraded Alamodome, and a privately funded convention center hotel.

The district would be funded primarily with taxes paid by visitors, while GO bonds backed by property taxes would be issued, if approved by voters in November, for public infrastructure, according to the city, which on Tuesday announced it will hold a series of community workshops on the project later this month and in July.

The Spurs currently play in the county-owned Frost Bank Center in San Antonio, which opened in 2002 and underwent a more than $110 million renovation in 2015.