San Antonio Mayor Gina Ortiz Jones' concerns about the Project Marvel economic impact study largely fell on deaf ears Wednesday at City Hall. Wikimedia Commons / SuperWIKI" class="uk-display-block uk-position-relative uk-visible-toggle"> click to enlarge San Antonio Mayor Gina Ortiz Jones' concerns about the Project Marvel economic impact study largely fell on deaf ears Wednesday at City Hall. - Wikimedia Commons / SuperWIKI
Wikimedia Commons / SuperWIKI
San Antonio Mayor Gina Ortiz Jones' concerns about the Project Marvel economic impact study largely fell on deaf ears Wednesday at City Hall.
Mayor Gina Ortiz Jones during a marathon City Council meeting Wednesday proposed pausing negotiations between the city and Spurs Sports & Entertainment (SS&E) on a new $1 billion-plus downtown arena for NBA franchise. However, she faced pushback from both staff and the majority on the dais.
Despite Jones' concerns — which stem from questions surrounding two economic impact studies on the project and worries SS&E hasn't yet put the financial end of its offer in writing — council now appears poised to vote on a non-binding agreement with the team on Aug. 21.
"People of San Antonio have entrusted us to do the adequate due diligence, and I don't think what we have been presented with does that," Jones said. "I think we need to take a strategic pause on this entire effort, and we need to lay out not only the costs and benefits of the Spurs arena but of this entire project."
Indeed, for a majority of the meeting, Jones appeared skeptical about Project Marvel — the $4 billion downtown sports-and-entertainment district that would include not just the Spurs arena but a convention center expansion, a new hotel, a concert venue, a renovated Alamodome and a land bridge.
Jones questioned the Project Marvel economic impact report released by consulting firm CSL International last week, which raised eyebrows among economists. She argued that an independent study is needed. Further, she raised concerns that SS&E hadn't submitted its financial obligations for the project in writing.
District 5 Councilwoman Teri Castillo also was reticent to move ahead, advising colleagues against barreling ahead on Project Marvel until they can analyze and debate all the economic data. She said more data is needed to show the city was being transparent about the process.
"I would caution us not to move forward without receiving full information," Castillo said. "As presented from CSL, there are still components that council hasn't been fully presented."
Jones also pointed out that Spurs leadership only presented its separate, team-commissioned economic impact report to council on Wednesday, even though the NBA franchise has been in possession of the data since January.
"That's playing games," UTSA Public Administration Professor Emeritus Heywood Sanders told TPR of the timing.
Sanders, a columnist for the Current, added that the move showed bad faith on behalf of the Spurs.
Even so, the majority of City Council appeared ready to brush aside those fears during Wednesday's discussion.
City Attorney Andy Segovia told Jones that holding an impromptu vote whether to continue negotiations with SS&E was impossible since it wasn't on the agenda. The vote also could have come during a B session, usually reserved for briefings rather than council actions.
During an impassioned speech, District 3 Councilwoman Phyllis Viagran said that even though San Antonio's been left shorthanded in other massive public projects, including Hemsifair, the Alamodome and, more recently, the Frost Bank Center, this time would be different.
"I know we're facing a financial crisis, but when it comes down to it, people are still spending on concerts and sports games and things like that," Viagran said.
Meanwhile, District 10 Councilman Marc Whyte said the deal on the table from the Spurs — while not finalized or put into writing — is the best San Antonio's going to get.
"I think that for some, it'll never be enough," Whyte said. "Some people just want to throw roadblock after roadblock in front of the progress that this council has been working towards — and city staff has been working towards — over the last couple of years. We need to get the very best deal for the citizens of San Antonio, and I think what we've arrived at is a very, very fair deal."
SS&E general counsel Bobby Perez told Jones and council the Spurs are offering $500 million for the arena by 2031, along with $500 million in funds for unspecified economic development efforts to be disbursed by 2042. The franchise's final and formal written contribution will be ready later this month, he added.
With Jones' proposal to pause negotiations only garnering support from council's progressive wing — including Castillo, District 4's Ric Galvan and District 2's Jalen McKee-Rodriguez, who was absent but represented by Leo Castillo-Anguiano — council is now set to vote Aug. 21 on moving ahead with the deal.
Terms covered under the non-binding agreement will include the city's financial commitment to the arena, which could run $350 million to $500 million. The city's portion would be issued in bonds that will hypothetically be paid back via revenue from a surrounding tax increment reinvestment zone, or TIRZ.
Before that, though, council will vote Aug. 18 whether to call a November election for a $200 million-plus bond to prepare downtown infrastructure near Hemisfair for the massive Project Marvel development.
During Wednesday's debate, Jones also fought for a delay on that vote, asking SS&E's Perez to explain the rush.
Perez cited Bexar County's vote earlier this week to call a November election to ask voters whether they support raising the county's venue tax to 2% to cover up to $311 million of the arena's cost.
"What better way to have the public comment than at the ballot box in November?" Perez asked.
However, if voters reject either the Bexar County venue tax increase or the city's infrastructure bond agreement, whatever deal the city and SS&E hash out by Aug. 21 will become null and negotiations will reset.
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