Project Marvel

Bexar County voters will decide the fate of a $1.5 billion public funding package for a new downtown Spurs arena and upgrades to the AT&T Center, home of the San Antonio Stock Show & Rodeo, after the Bexar County Commissioners Court voted 4-1 Tuesday to place the measure on the november ballot. The decision follows months of negotiations between the county, the City of San Antonio, and Spurs Sports & Entertainment (SS&E).

The ballot proposition will ask voters to approve an extension of the countyS venue and hotel occupancy tax (HOT tax) – currently set to expire in 2041 – and dedicate the increased revenue to the arena project and rodeo facility improvements. The HOT tax is a tax levied on hotel stays and certain venue admissions. The extension is projected to generate approximately $500 million for the arena and $175 million for the AT&T Center upgrades, with SS&E contributing the remaining $925 million.

Commissioner Rebeca Clay-Flores (Pct. 1) expressed her preference for allocating the funds to social services like mental health and preventative healthcare, specifically mentioning colon cancer awareness. However, she acknowledged the legal constraints imposed by state law, which dictates how venue and HOT tax revenue can be used. “Legally, we are the county. We are an agent of the state, and legally by state law, venue/HOT tax has to be voted on by voters. … And when they vote on this, it can only be used for certain venues,” she stated.

the proposed arena, envisioned as a state-of-the-art facility, is intended to replace the AT&T Center as the primary home for the San Antonio Spurs and attract major events to the city. The AT&T Center, located at 1453 AT&T Center Pkwy, will undergo renovations to enhance its capabilities for the San Antonio Stock Show & Rodeo, a significant economic driver for the region, generating an estimated $300 million in economic impact annually.

Commissioner Grant Moody (Pct. 3), the court’s sole Republican member, opposed the measure, citing concerns about the tax increase. He described the agreement as containing a “poison pill” he could not support.

The San antonio City Council is scheduled to discuss the downtown arena funding plan at its Wednesday meeting, aiming to finalize a funding agreement with the Spurs by August 21. The proposed arena site is located on the city’s West Side, near the Pearl District, and is expected to spur further development in the area. SS&E, led by CEO R.C. Buford, has been actively involved in community engagement efforts to garner support for the project.

Background: Venue and Hotel Occupancy Taxes in Texas

Texas law allows counties and cities to levy venue and hotel occupancy taxes to fund tourism, convention centers, and other related projects.These taxes are typically used to attract visitors and stimulate economic activity. The specific uses of these funds are often subject to voter approval, as is the case with the current Bexar County proposal. The HOT tax rate in San Antonio is currently 15.75%, comprised of state, city, and county portions.