San Antonio residents wait to get into City Hall Thursday ahead of debate on the future of a new Spurs arena. Michael Karlis" class="uk-display-block uk-position-relative uk-visible-toggle"> click to enlarge San Antonio residents wait to get into City Hall Thursday ahead of debate on the future of a new Spurs arena. - Michael Karlis
Michael Karlis
San Antonio residents wait to get into City Hall Thursday ahead of debate on the future of a new Spurs arena.
San Antonio City Hall was standing room only Thursday morning as hundreds of people descended on council chambers ahead of a highly anticipated vote that will determine how quickly city leaders move ahead on plans for a new Spurs arena.
Representatives from progressive group the Texas Organizing Project and the Greater San Antonio Chamber of Commerce — which have opposing views on the speed with which the city is moving on the project — packed the seats. Even Spurs great Sean Elliot was in attendance.
Council will discuss two agenda items during the morning meeting.
The first, proposed and heavily lobbied for by Mayor Gina Ortiz Jones, would pause negotiations with Spurs Sports & Entertainment until an independent group can conduct a second economic impact study on Project Marvel, the $4 billion downtown project that would include the NBA arena.
The other item, put on the agenda by City Manager Erik Walsh, would agree to a non-binding term sheet that outlines a deal between the city and SS&E. Per the term sheet, the city would be on the hook for $489 million for a new arena, and the funding would come from a combination of visitor taxes, property taxes at Hemisfair and ground leases.
Jones maintains that a second economic impact analysis in necessary because the first one, conducted by CSL International, wasn't substantial enough and may have been clouded by conflict of interest.
With Council Chambers at capacity, many observers had no choice but to stand to watch the debate. Michael Karlis" class="uk-display-block uk-position-relative uk-visible-toggle"> click to enlarge With Council Chambers at capacity, many observers had no choice but to stand to watch the debate. - Michael Karlis
Michael Karlis
With Council Chambers at capacity, many observers had no choice but to stand to watch the debate.
Specifically, CSL International is a subsidiary of Legends Hospitality, owned by Austin-based Sixth Street Partners. Sixth Street Partners holds a 20% ownership stake in SS&E.
What’s more, the study was only 22 pages long, far slimmer on details than similar reports the firm has conducted for other NBA cities.
“Due diligence is not anti-progress, it’s anti-poverty,” Jones said as the meeting got underway. “It’s really important that we take a long, hard look at the numbers."
The comment draw applause from at least half the crowd.
Jones also said she's concerned November voters might reject Bexar County’s proposed 2% visitor tax — a component of funding the arena — if more due diligence isn’t completed.
“I am very concerned, frankly, based on the feedback that I have received, that if the public does not trust this process, they may not come out and support the county's vote,” Jones said. “I don’t know what would happen if that vote fails.”
However, those opposed to the mayor's concerns, including District 10 Councilman Marc Whyte and City Manager Walsh, maintain the city has all the information it needs.
The Current will continue to provide updates as the debate unfolds.
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