Spurs arena subsidy moves forward after Bexar County voters approved a measure to help finance a new downtown arena, authorizing up to $311 million backed by a hotel-occupancy tax. The vote clears a pivotal hurdle for the San Antonio Spurs’ long-discussed plan to relocate from the East Side’s Frost Bank Center to a venue in the city’s core—paired with promises of private investment and community benefits.
Key Points
With Proposition B approved according to unofficial county results, the county can raise the hotel-occupancy tax by up to 2% to fund the project. The Spurs have committed to covering any cost overruns, and local leaders say the deal is structured to protect taxpayers while channeling new tourism dollars into public venues and nearby infrastructure.
In a parallel vote, residents also passed Proposition A to support upgrades to the team’s current home, which it shares with the San Antonio Stock Show & Rodeo. That package includes improvements to surrounding facilities, setting up a coordinated transition as the franchise targets a downtown future.
What the Spurs arena subsidy covers
Under the voter-approved plan, Bexar County is permitted to add up to a 2% hotel-occupancy tax dedicated to the arena initiative, allowing the county to front as much as $311 million for the build-out. Spurs arena subsidy funds are designed to be repaid from visitor-driven lodging taxes rather than the general fund.
The financing structure sits alongside significant private and municipal commitments. The Spurs plan to contribute about $500 million to construction, while the City of San Antonio will provide roughly $489 million. The team is on the hook for any overruns, and the broader agreement includes a guarantee of $1.4 billion in private development plus $75 million earmarked for community benefits.
Beyond the new venue, the approved framework also supports renovations to facilities surrounding the current arena. Moving the NBA team downtown would free the Rodeo to expand its operations at the existing site—an important consideration for one of the region’s largest annual events.
Why it matters for downtown San Antonio
Local officials have long pitched a new arena as a catalyst for more jobs, foot traffic, and investment in the city center. The Frost Bank Center sits on the East Side, outside the heart of downtown, where the team has played for years while the city mapped out potential redevelopment plans across the core.
Supporters say the Spurs arena subsidy will anchor an entertainment and mixed-use district, drawing more visitors and lengthening stays. The anticipated development commitments, if realized, could knit the arena into a broader live-work-play zone that supports restaurants, hotels, and retail.
Because the financing relies on hotel stays, backers argue the project is largely paid for by tourists rather than residents. The arrangement is designed so that incremental revenue from out-of-town visitors helps pay the county’s share, while the city and team shoulder their portions and the Spurs guarantee cost overruns.
How the Spurs arena subsidy will be financed
The Spurs arena subsidy hinges on Proposition B’s authorization to raise the county’s hotel-occupancy tax by up to 2%. Those receipts can back county financing of as much as $311 million for the new venue. The county “fronts” the money and is repaid from dedicated tourism tax collections over time.
To reinforce fiscal safeguards, the Spurs are responsible for any construction overruns. The deal also includes a $1.4 billion private development guarantee and $75 million in community-benefit investments—benchmarks that will be closely watched as planning moves into the design, permitting, and procurement stages.
City participation—about $489 million—pairs with the team’s approximately $500 million contribution. Together with the county’s share, the multi-party funding aims to spread risk, lock in private co-investment, and use visitor taxes to minimize the burden on local households.
Debate and community concerns
Community groups and taxpayer advocates pushed back ahead of the vote, arguing that public resources tied to large venues can come at the expense of other priorities. The Spurs arena subsidy, critics said, risks diverting attention and dollars from core needs such as roads, drainage, and neighborhood infrastructure.
Skeptics warn about trade-offs
Opponents questioned whether the promised economic benefits would materialize at the scale projected by supporters. They also pressed for hard guardrails on construction costs, transparent reporting on community-benefit spending, and binding plans for workforce and local procurement.
Supporters highlight growth potential
Backers countered that the Spurs arena subsidy will capture visitor spending that might otherwise go elsewhere, helping fund a marquee venue and catalyze private investment downtown. They say the package is structured to limit resident exposure, channel new tourism revenue into public assets, and unlock expansion opportunities for the Rodeo at the current site.
A national backdrop
Across the U.S., voters have become more selective about public financing for stadiums and arenas. In that context, the Spurs arena subsidy passing in Bexar County stands out as a notable win for proponents of leveraging lodging taxes to fund sports and entertainment infrastructure tied to urban revitalization.
Reactions and next steps
“I will work to ensure this generational investment helps to revitalize our downtown and strengthen our city,” San Antonio Mayor Gina Ortiz Jones said in a statement after the vote. Local officials emphasized that formal agreements still need to translate ballot approval into contracts, timelines, and program delivery.
In the coming months, the county and city are expected to outline the final site plan, development milestones, and reporting requirements tied to community benefits. The Spurs arena subsidy framework will move into design and engineering, followed by permitting and a construction schedule that will depend on procurement, market conditions, and coordination with surrounding infrastructure projects.
Proposition A’s passage enables upgrades at the Frost Bank Center and adjacent facilities. As the NBA team moves toward a downtown arena, the Rodeo will gain flexibility to expand at the current site—supporters say that the two-track approach aims to boost both venues and their year-round economic impact.
Businesses and residents will be watching for clear deliverables: detailed budgets, a phasing plan, workforce targets, local-vendor outreach, and community-benefit project lists. With large-dollar projects, success will hinge on cost control, transparent reporting, and timely execution that aligns private development with the public investment.
The bottom line
By approving Proposition B, Bexar County voters unlocked a Spurs arena subsidy backed by an increased hotel-occupancy tax. The county can finance up to $311 million, paired with roughly $500 million from the franchise and $489 million from the city, plus a pledge of $1.4 billion in private development and $75 million in community programs.
Supporters see a once-in-a-generation chance to reframe downtown San Antonio’s entertainment landscape. Skeptics want firm safeguards and evidence that the public’s share catalyzes growth without crowding out other needs. As contracts are finalized and shovels move toward the ground, the Spurs arena subsidy will face its real test: translating a ballot win into visible, lasting benefits for the city and its residents.
FAQ’s
What did Bexar County voters approve?
Proposition B authorizes raising the hotel-occupancy tax by up to 2% and financing up to $311 million for a new downtown arena. Proposition A also passed to fund upgrades at the Frost Bank Center and nearby facilities.
How will the Spurs arena subsidy be funded?
The county’s share would be backed by the hotel-occupancy tax, largely paid by visitors staying in local hotels. The Spurs are responsible for any construction cost overruns.
Who is paying for the new arena and what are the commitments?
The Spurs plan to contribute about $500 million and the City of San Antonio about $489 million, alongside the county’s up to $311 million. The team also guarantees $1.4 billion in private development and $75 million in community benefits.
What happens to the current arena and when could the new one open?
Upgrades at Frost Bank Center can proceed, and the Rodeo could expand operations once the Spurs move downtown. A detailed timeline will follow design, permitting, and final agreements.
