San Antonio Spurs Commit $1 Billion to Planned Arena District

The San Antonio Spurs are willing to put up over $1 billion for a new downtown arena and surrounding development. But whether the city will match the team’s commitment remains an open question.

The Spurs’ parent company confirmed its investment plan for “Project Marvel,” a proposed sports and entertainment district anchored by a new arena, the San Antonio Business Journal reported.

It constitutes $500 million earmarked for the venue, $500 million for adjacent development and $60 million for community incentives, per a letter sent to city officials last week. The Spurs also pledged to cover cost overruns.

Project Marvel’s broader scope includes a convention center expansion, a 1,000-room hotel, a 5,000-seat venue, a land bridge over Interstate 37 and about 50 acres of mixed-use development. The city has already approved a Project Finance Zone, allowing it to collect up to $2 billion in hotel taxes over 30 years. Bexar County is separately weighing a $450 million venue tax.

The Spurs funding could help ease concerns voiced by newly elected Mayor Gina Ortiz Jones, who had pushed for greater transparency around the team’s ask. The Spurs are seeking a $500 million public contribution from the city, but Jones noted in a memo ahead of a council meeting last week that “several critical answers” were still outstanding.

Ortiz Jones, a progressive former Biden administration official and the city’s first openly gay mayor, won election last month after criticizing Project Marvel as a potential giveaway. During the campaign, she called discussions of public funding “premature,” stressing the need to first determine how the city would benefit. She’s prioritized affordable housing and development reform in her early policy agenda.

City Manager Erik Walsh said negotiations with the Spurs are ongoing and that any term sheet will be informed by an economic analysis and public feedback. The City of San Antonio and Bexar County have until Aug. 18 to place the question of public funding on the November ballot.

“We recognize there is still work to do and we welcome it. In particular, in making the case to our community about the need for this project and its benefits to our local economy,” Spurs Chair Peter Holt said.

— Judah Duke