After San Antonio City Council Decision, What's Next for Spurs, Project Marvel?

The final resident speaker at Thursday afternoon's San Antonio City Council A Session finished his deliverance by calling the council members in favor of Item 5 "sham politicians."

His remarks garnered weary applause; an hour earlier, Peter J. Holt's relentless opposition to new city mayor Gina Ortiz Jones neared a standing ovation. The resolutions in question — whether to place a strategic pause on negotiations between San Antonio and the Spurs (Item 4) or move forward (Item 5) — revealed how divided the room had become.

BREAKING: Item 5, which gives San Antonio City Manager Erik Walsh the go-ahead to continue negotiations with the #Spurs on a term sheet for a new downtown arena carries, 7-4.

Residents will now be able to vote on the county's contribution of $311 million in November. #PorVida
— Matt Guzman (@mattgzman) August 21, 2025

“We haven’t put anywhere near the same amount of effort into solving homelessness, generational poverty as we have into this project," Councilman Leo Castillo-Anguiano said in opposition to advancing talks.

Jones' Item 4 failed. Item 5 carried. Seven "sham politicians" made sure of it.

“Today’s vote is an important step forward for San Antonio," Holt, the San Antonio Spurs' managing partner, said following the vote. "This project is about more than an arena. It’s about pride in who we are as a city and belief in what San Antonio can become."

Since its public introduction, "Project Marvel" has stirred up controversy. The initiative is set to include a new downtown Spurs arena worth $1.3 billion and several other renovations, expansions to surrounding structures, including the Alamodome and Henry B. González Convention Center.

In February, San Antonio City Council — led by then-mayor Ron Nirenberg — green-lit negotiations between the City of San Antonio, Bexar County and the San Antonio Spurs to reach a non-binding Memorandum of Understanding. The document expressed all parties' interest in working together to flesh out details regarding Project Marvel.

A rendering of the proposed "Project Marvel" in Downtown San Antonio — A rendering of the proposed "Project Marvel" in downtown San Antonio | Photo via POPULOUS, City of San Antonio

Once the agreement was reached, city manager Erik Walsh began working on drafting a terms sheet for the arena, specifically. That draft, given to San Antonio City Council ahead of Thursday's session, included a three-way funding split between the three parties as outlined below:

SS&E: $500 million direct plus "any and all" cost overruns
San Antonio: Lesser of $489 million or 38 percent of total cost
Bexar County: 25 percent of total cost, not to exceed $311 million

The Spurs also committed $1.4 billion of private development projects to create jobs and boost the surrounding area, as well as $75 million aimed directly at giving back to the local community. All-in, the franchise has pledged over $2 billion for the project.

"This is not an either/or," Councilwoman Marina Alderete Gavito said in support of Item 5. "This isn't taking money from our general fund. The city can still work on sidewalks, addressing homelessness, affordable housing whether or not this term sheet is approved."

Jones' primary motivation in her advocacy for a strategic pause on term sheet negotiations was the lack of a second independent economic impact study conducted on the project. The mayor cited several times a study similar to what the City of Philadelphia had done when exploring a new 76ers' arena; consulting firm CSL did both Philadelphia's and San Antonio's existing study.

That was enough for Holt and the Spurs.

"We feel there is tremendous positive data that shows that this project, this arena is going to be great for San Antonio," Holt told Jones. "That's why we're willing to make a historic investment in our community and urban core."

What's Next for Spurs, Project Marvel?

After Thursday's vote, a second study is unlikely. A majority of San Antonio City Council believed the data provided by CSL's study was sufficient, so Walsh will now continue negotiations with the Spurs toward a finalized term sheet "substantially similar" to the one already presented and released.

Between now and Bexar County's Nov. 4 election, both the team and city council members will begin community outreach aimed to educate voters on the impact that the new arena and Project Marvel will have on the city's infrastructure, financials and future.

For the seven council members in favor of the initiative, that might also include a little bit of fandom.

"There isn't an economic analysis out there that can truly value the San Antonio Spurs' worth to San Antonio," Councilman Marc K. Whyte said Thursday. "There's only 30 of these franchises in the United States. We
happen to be lucky enough to have the best one."

On the county ballot will be a venue tax. If approved, hotel tax rates will increase from 1.75 percent to 2 percent, and rental car tax rates will see an increase as well to generate more than $500 million over a 30-year span. Those funds will cover the $311 million contribution from Bexar County.

Jones expressed her intention to file a motion to include the state's revenue bond on the ballot as well, giving voters a say on the city's contribution of $489 million before it is disbursed. Legality of such a move, considering the funds are coming from Texas and not San Antonio, is still in question.

The mayor declined comment on whether she would take a public stance for or against Project Marvel now that the council has approved finalizing a term sheet with the Spurs without a pause.

The Spurs, meanwhile, wasted no time beginning their campaign.

"The next step belongs to the people of Bexar County," Holt said. "We are hopeful they will join us in saying yes to the future of our city.”