The San Antonio City Council voted 6-5 on Monday to reject a proposal that would have put the city’s planned $489 million contribution to a new Spurs downtown arena to a public vote, clearing the way for the project to advance without a citywide referendum on the November ballot.
The decision means voters will not weigh in on the city’s portion of the funding for the proposed $1.3 billion arena at the Nov. 3 midterm election. Bexar County, where San Antonio is located, had already approved $311 million in county venue taxes for the arena in a November vote that passed 52.1 percent with Proposition B.
Spurs CEO R.C. Buford said in a statement that the vote allows San Antonio to move forward on a path established through years of work, public discussion, and governmental action. He said the organization can now turn its full attention to delivering on the shared vision and the transformational opportunity ahead for the city.
How the funding would work
The city’s $489 million contribution would be financed through revenue bonds drawing from a variety of sources, including rent paid by the Spurs, leases on surrounding city-owned land and designated tax revenue. The city was not legally required to seek voter approval for its portion of the funding, which distinguishes it from the county’s contribution, which did go before voters.
The Spurs are committed to contributing at least $500 million to construction, covering all cost overruns. Combined with the county’s $311 million and the city’s $489 million, the total public-private funding package reaches approximately $1.3 billion.
The mayor’s case for a public vote
San Antonio Mayor Gina Ortiz Jones had pushed for a citywide vote in a July 31 memo, arguing that the city’s financial situation had changed materially since Bexar County voters approved their portion of the funding. San Antonio is projecting a $158 million budget deficit in 2027, and Jones argued voters should have a say given that context.
The city’s arena bonds and its operating budget are legally separate. The memo acknowledged that the $489 million in proposed arena revenue bonds could not be redirected to fill the operating deficit, but Jones argued the total scope of the city’s financial position warranted public input before proceeding.
The council disagreed, with six members voting against the referendum proposal. Buford said there is still a great deal of work ahead and the Spurs remain committed to working alongside public and community partners to deliver an arena and district that strengthens San Antonio for generations.
The project in context
The arena project has been in development for years, with the county vote last November representing a significant political milestone in establishing the funding structure. Proposition B authorized venue taxes, specifically fees on hotel occupancy and short-term car rentals, to be increased for the county’s $311 million contribution.
Monday’s council vote settles the question of whether the city’s share requires additional voter ratification and allows the project to advance toward design and construction. For the Spurs, the clarity is significant because extended uncertainty about funding can complicate contracts with architects, contractors and other parties whose work depends on confirmed public commitments.
The new arena would be located downtown, a preference the Spurs have stated publicly and that aligns with San Antonio’s broader efforts to develop its urban core. The existing AT&T Center, where the Spurs currently play, opened in 2002 and is considered functionally outdated by NBA standards. The project represents both a long-term home for the franchise and a civic development the city has been working toward for years.
