Bexar County commissioners approved sending a resolution to the Texas Comptroller of Public Accounts to pave the way for putting a venue tax increase to voters in November.
But commissioners stopped short of saying they actually supported the increase. That should be up to voters, some said.
In May, commissioners gave the county manager the go-ahead [to draft the resolution](http://Bexar County commissioners approved sending a resolution to the Texas Comptroller of Public Accounts to pave the way for putting a venue tax increase to voters in November. But commissioners stopped short of saying they actually supported the increase. That should be up to voters, some said. In May, commissioners gave the county manager the go-ahead to draft the resolution which describes spending almost $200 million in upgrades to the Freeman Coliseum and grounds and $78 million on the Frost Bank Center — and using the county venue tax to help pay for it. On Tuesday, the court voted to send the resolution to the state with a .25% increase in the hotel occupancy tax, a hike that, if approved by voters, would be paid by visitors to the San Antonio area and also would help build a new San Antonio Spurs arena downtown. The county and its special use venue tax are key to a deal with the city that would allow the Spurs to move from the county-owned Frost Bank Center to a new arena downtown. County officials have met that proposal with demands for investment in the East Side and redevelopment of the coliseum grounds that could bring more fund-generating events and programs. A looming statutory deadline to get the venue tax on the ballot is forcing their hand. The county has until Aug. 18 to call for an election in November. “This is not a final decision today — that is going to be forthcoming,” said Commissioner Justin Rodriguez (Pct. 2). “This essentially keeps the train running down tracks. This gives the comptroller the authority to review make sure everything's in compliance.” Commissioners approved a resolution that would keep the motor vehicle rental tax at 5% but increase the county hotel occupancy tax rate from 1.75% to 2%. The funds generated from the tax would be used on two proposed venue projects — the renovation and redevelopment of the Freeman Coliseum grounds and facilities, and the development of a new arena as the future home of the Spurs. A proposal for the coliseum grounds presented to the court in May would include the construction of two new expo halls with several other structures modified, plus upgrades to exterior buildings throughout and new gates and green space created. Renderings developed by the architecture firm Gensler show buildings reconfigured for a variety of programming and paved walkways and landscaping to make the site more inviting. The project would cost $197 million and help to attract more year-round events to the 166-acre site, said Cody Davenport, executive director and CEO of the San Antonio Livestock Exposition, which hosts the rodeo every year in February. Funds generated from the venue tax have been used in past years for improvements to the San Antonio River, sports facilities, performing arts facilities and community arenas. The tax is paid by visitors and collected on hotel rooms and rental cars, and would yield an estimated $397 million a year if the hotel occupancy tax remains at 1.75%. If the county asks voters to raise the rate to the maximum 2%, that figure could go up to $449 million. After spending on upgrades to the coliseum and existing arena, that could leave about $275 million in funding available for a new downtown arena. A new arena anchoring the proposed massive sports and entertainment district is estimated to cost $1.5 billion. The city has proposed a funding framework for the plan that includes the county’s venue tax, the state’s project finance zone (PFZ), and development and leases associated with city property. While the Spurs have said it will pitch in on the new arena, the organization has not revealed an actual dollar amount. Spurs Chairman Peter Holt has said the team is loyal to San Antonio, and told commissioners he wants to see the Frost Bank Center thrive even as the team looks to move. “We very much are committed to the legacy and foundation of the Frost Bank Center,” he said. “We're here to ask for your support, and we're here to make the commitment that we will work with you and your teams to ensure that this process is impactful in an incredibly positive way and beneficial to all.” Bexar County Judge Peter Sakai said that while County staff are involved in the negotiations with the Spurs and the City, some questions remain, such as who the private development partners will be and the level of funding the Spurs will bring. “I get it, everybody wants answers … everybody wants things the way they want it,” Sakai said. “But in this world, in order for us to succeed, we must work together.” Sakai also pointed to the financial contributions that Spurs Foundation has made to the county. In its 33 years, the team’s charitable arm Spurs Give has contributed about $25 million to $30 million to various causes, said Spurs Chief Legal Officer Bobby Perez, plus millions more in jobs and other contracts. “I'm asking the court to approve this so that we have a possibility to make a game-changing circumstance and event for the East Side and also help the San Antonio Spurs, who I'm convinced give back more than they get,” Sakai said. Cops Metro leader Arturo Rodriguez said that money could be better spent, “in ways that could lift up the residents of Bexar County.” He said sports venues are not a good use of public dollars and called for more public input and discussion. “One of the reasons that San Antonio and our Bexar County is so poor is because too often we have given our money away to people who have plenty of it,” Rodriguez said. “We're tired of this saying, ‘build it and they will come.’” Commissioner Grant Moody (Pct. 3) said he sees “real opportunity” for the rodeo and San Antonio Livestock Exposition in improving the coliseum grounds and bringing more revenue. He’s less enthused, he said, about increasing the venue tax to support a new arena. “I was willing to support today reallocation of the existing venue tax that fully funded the maintenance for the existing assets,” Moody said. “However, this recommendation and motion to increase the venue tax to 2% is a bridge too far for me.” Moody said he believes both projects can be accomplished without raising the venue tax. Commissioner Tommy Calvert (Pct. 4), who has tried without success to be involved in formal negotiations on the issue, pointed out it will be voters who ultimately decide. “So my vote is in favor of allowing the public to hash this out with everyone and make their voice heard,” he said.), which describes spending almost $200 million in upgrades to the Freeman Coliseum and grounds and $78 million on the Frost Bank Center — and using the county venue tax to help pay for it.
On Tuesday, the court voted to send the resolution to the state with a 0.25% increase in the hotel occupancy tax, a hike that, if approved by voters, would be paid by visitors to the San Antonio area and also would help build a new San Antonio Spurs arena downtown.
If approved by the state, the commissioners court would then vote to call for an election. “This is not the final approval of that election — that wouldn’t happen until August, but it is the first step on the way toward that election,” said County Manager David Smith.
The county and its special use venue tax are key to a deal with the city that would allow the Spurs to move from the county-owned Frost Bank Center to a new arena downtown.
County officials have met that proposal with demands for investment in the East Side and redevelopment of the coliseum grounds that could bring more fund-generating events and programs.
A looming statutory deadline to get the venue tax on the ballot is forcing their hand. The county has until Aug. 18 to call for an election in November.
“This is not a final decision today — that is going to be forthcoming,” said Commissioner Justin Rodriguez (Pct. 2). “This essentially keeps the train running down tracks. This gives the comptroller the authority to review and make sure everything’s in compliance.”
Commissioners approved a resolution that would keep the motor vehicle rental tax at 5% but increase the county hotel occupancy tax rate from 1.75% to 2%.
The funds generated from the tax would be used on two proposed venue projects — the renovation and redevelopment of the Freeman Coliseum grounds and facilities, and the development of a new arena as the future home of the Spurs.
A proposal for the coliseum grounds presented to the court in May would include the construction of two new expo halls with several other structures modified, plus upgrades to exterior buildings throughout and new gates and green space created.
Bexar County Commissioners are considering spending almost $200 million in upgrades to the Freeman Coliseum and grounds. Credit: Bonnie Arbittier / San Antonio Report
Renderings developed by the architecture firm Gensler show buildings reconfigured for a variety of programming and paved walkways and landscaping to make the site more inviting.
The project would cost $197 million and help to attract more year-round events to the 166-acre site, said Cody Davenport, executive director and CEO of the San Antonio Livestock Exposition, which hosts the rodeo every year in February.
Funds generated from the venue tax have been used in past years for improvements to the San Antonio River, sports facilities, performing arts facilities and community arenas.
The tax is paid by visitors and collected on hotel rooms and rental cars, and would yield an estimated $397 million a year if the hotel occupancy tax remains at 1.75%.
If the county asks voters to raise the rate to the maximum 2%, that figure could go up to $449 million. After spending on upgrades to the coliseum and existing arena, that could leave about $275 million in funding available for a new downtown arena.
A new downtown arena
A new arena anchoring the proposed massive sports and entertainment district is estimated to cost $1.5 billion. The city has proposed a funding framework for the plan that includes the county’s venue tax, the state’s project finance zone (PFZ), and development and leases associated with city property.
While the Spurs have said it will pitch in on the new arena, the organization has not revealed an actual dollar amount.
Spurs Chairman Peter Holt has said the team is loyal to San Antonio and told commissioners he wants to see the Frost Bank Center thrive even as the team looks to move.
“We very much are committed to the legacy and foundation of the Frost Bank Center,” he said. “We’re here to ask for your support, and we’re here to make the commitment that we will work with you and your teams to ensure that this process is impactful in an incredibly positive way and beneficial to all.”
Peter Holt Jr. and the Coyote celebrate as the Frost Bank Center is announced.
Spurs Chairman Peter Holt and the Coyote mascot celebrate as the Frost Bank Center is announced in 2023. Credit: Scott Ball / San Antonio Report
Bexar County Judge Peter Sakai said that while county staff are involved in the negotiations with the Spurs and the city, some questions remain, such as who the private development partners will be and the level of funding the Spurs will bring.
“I get it, everybody wants answers … everybody wants things the way they want it,” Sakai said. “But in this world, in order for us to succeed, we must work together.”
Sakai also pointed to the financial contributions that Spurs Foundation has made to the county. In its 33 years, the team’s charitable arm Spurs Give has contributed about $25 million to $30 million to various causes, said Spurs Chief Legal Officer Bobby Perez, plus millions more in jobs and other contracts.
“I’m asking the court to approve this so that we have a possibility to make a game-changing circumstance and event for the East Side and also help the San Antonio Spurs, who I’m convinced give back more than they get,” Sakai said.
COPS/Metro leader Arturo Rodriguez said that money could be better spent, “in ways that could lift up the residents of Bexar County.” He said sports venues are not a good use of public dollars and called for more public input and discussion.
“One of the reasons that San Antonio and our Bexar County is so poor is because too often we have given our money away to people who have plenty of it,” Rodriguez said. “We’re tired of this saying, ‘build it and they will come.’”
Commissioner Grant Moody (Pct. 3) said he sees “real opportunity” for the rodeo and San Antonio Livestock Exposition in improving the coliseum grounds and bringing more revenue. He’s less enthused, he said, about increasing the venue tax to support a new arena.
“I was willing to support today reallocation of the existing venue tax that fully funded the maintenance for the existing assets,” Moody said. “However, this recommendation and motion to increase the venue tax to 2% is a bridge too far for me.”
Moody said he believes both projects can be accomplished without raising the venue tax.
Commissioner Tommy Calvert (Pct. 4), who has tried without success to be involved in formal negotiations on the issue, pointed out it will be voters who ultimately decide.
“So my vote is in favor of allowing the public to hash this out with everyone and make their voice heard,” he said.