City Manager Erik Walsh told the mayor and council on Friday evening that he’s nearing a deal framework with the San Antonio Spurs on a new arena, and council is likely to consider it before the end of the month.
Walsh said city staff was “close to finalizing a term sheet” that’s “consistent with the financing structure” proposed to the council last week.
Council should see the details by Thursday, he said, and could consider approving them as early as Aug. 27 — nearly a week after a previous target vote date of Aug. 21.
“The negotiations have gone well and been productive,” Walsh wrote in an email sent to council at 5:53 p.m., which was shared with the Report.
City officials said earlier this month that San Antonio could contribute between $350 and $500 million overall to a downtown sports and entertainment district, known as Project Marvel, which would be anchored by a roughly $1.5 billion Spurs basketball arena.
Peter J. Holt, chairman and managing partner of the San Antonio Spurs, offered to pitch in $500 million for construction and $60 million in community incentives by the NBA team, while guaranteeing another $500 million through adjacent development — an investment of more than $1 billion.
But Mayor Gina Ortiz Jones told reporters on Monday that she would not commit any city money to the project until the city obtained an “independent” economic analysis — which could take another 30 to 90 days.
“The term sheet is not going to include a number [of the city’s dollar commitment,” Jones said.
Jones said she expected Walsh to deliver the council with additional details on the project at the Aug. 21 meeting, such as the actual cost of the arena and more information the Spurs’ plans for “guaranteed revenues.”
“Let’s not forget that the term sheet is non-binding,” she said, “while we also work to get independent economic analysis.”
