San Antonio is exploring a multi-faceted approach to fund a new NBA arena, with a key component being a Project Finance Zone (PFZ) approved by the city council in May. This PFZ allows the city to capture a portion of hotel-related state tax revenue within a three-mile radius of a “convention center complex” for three decades.
Additionally, Bexar County voters will consider a $175 million tax proposal in November. Other potential funding streams include revenue generated from arena leases and ground leases for adjacent property development.
The new city council includes members who voiced reservations during the recent election regarding the city’s involvement in “Project Marvel,” the initiative for the new arena. Community planning workshops across the city’s 10 districts revealed apprehension among East Side residents about the project’s objectives.
concerns raised by some residents include questions about the necessity of Project Marvel, notably considering the limited development that has occurred around the Spurs’ current venue, the Frost Bank Center, on the East Side.
In a letter, Peter J. Holt, representing the Spurs association, stated their commitment to “making the case” to the community regarding the project’s feasibility. Councilwoman Jada Andrews-Jones, in a recent interview, emphasized the need for the financial figures to be beneficial to the community, noting that residents are asking about direct benefits such as a share of concession and parking revenue, highlighting that community benefit is as crucial as the funding mechanism itself.