Spurs Arena Funding Vote Proposed as San Antonio Confronts $158 Million Budget Gap
Mayor Gina Ortiz Jones is calling for San Antonio voters to reconsider the city’s $489 million commitment to a new downtown Spurs arena as officials confront a projected $157.7 million budget shortfall over the next two fiscal years.
According to local reports, in a memo to City Council Jones proposed placing the city’s arena funding package on the November ballot. She argued that residents now have a clearer understanding of the city’s financial position, including the prospect of deeper service cuts or a property tax increase.
“November would allow city voters to vote clearly informed by what they are paying, what they are receiving in return and whether the latter is good enough,” Jones wrote.
The proposal is the latest in a series of cost-cutting ideas introduced by Jones as council members prepare to consider the city’s proposed budget Aug. 13.
Related: San Antonio Budget Gap Prompts Mayor to Seek Private Funding for DreamWeek, MLK March and Others
Jones Says City Residents Will Pay Twice
The planned $1.3 billion arena is a central component of Project Marvel, the proposed sports and entertainment district near Hemisfair. The venue is expected to begin hosting the Spurs around 2030.
Bexar County voters narrowly approved Proposition B in November 2025, authorizing up to $311 million in hotel occupancy and rental car tax revenue for the arena. The city has committed another $489 million, while Spurs Sports & Entertainment would contribute at least $500 million and cover construction cost overruns.
The county vote did not directly authorize the city’s contribution. City officials have maintained that a separate election was not legally required, although council members tied the city’s participation to approval of the county proposition.
Jones said San Antonio residents deserve another opportunity to vote because they contribute to both city and county revenue.
“City voters will pay twice towards the proposed arena, as they will contribute to the county’s $311 million contribution and the city’s $489 million contribution,” Jones wrote. “Since they pay twice, city voters deserve to vote twice.”
District 2 Councilman Jalen McKee-Rodriguez’s office expressed support for allowing residents to have a voice on the city’s commitment.
District 9 Councilwoman Misty Spears and District 10 Councilman Marc Whyte, both spurs arena supporters, said the city’s $489 million commitment cannot be redirected to basic services because much of it comes from restricted revenue sources.
Also Read: Misty Spears Asked For Free Ye Tickets, Then Declined Once It Became Public
How the City Plans to Finance Its Contribution
San Antonio’s contribution is expected to be financed through several sources, including Project Finance Zone revenue generated by hotels and hotel-related businesses, lease payments from the Spurs and bonds supported by projected increases in property tax revenue within the downtown project area.
Arena supporters have argued that visitors and economic activity surrounding the development would generate much of the public funding. Critics say dedicating future downtown tax growth to the project could prevent that revenue from supporting basic city services.
Jones has also raised questions about what residents would receive in exchange for the investment. The preliminary agreement includes $75 million in community benefits, equivalent to $2.5 million annually for 30 years. Jones has additionally pushed for a revenue-sharing arrangement, although Spurs representatives have reportedly resisted that proposal.
Spurs Sports & Entertainment has spent recent weeks gathering public feedback through a series of community workshops about the arena and surrounding development.
Related: The Spurs Are Coming to San Antonio Neighborhoods. Here’s Why.
The deadline for City Council to place a measure on the November ballot is Aug. 17.
Mayor Offers Series of Budget Proposals
Jones’ arena memo follows several proposals aimed at addressing the city’s widening financial problems.
Last week, she asked business and philanthropic leaders to consider replacing approximately $6.5 million in annual city funding allocated to 15 nonprofit and community organizations. The proposal sought private commitments lasting three years to support organizations such as DreamVoice, Dr. Martin Luther King Jr. Commission, San Antonio Botanical Garden, and more.
Jones has also proposed asking voters to end the Ready to Work workforce-development program early and redirect as much as $100 million in remaining funds toward eligible city projects.
City Council is scheduled to receive the proposed budget Aug. 13 and adopt a final spending plan and tax rate in September.
