San Antonio Spurs and City Agree on $1.3B Arena Development Framework

The San Antonio City Council meeting on August 21, 2025, focused on the proposed term sheet for a new arena project, which aims to secure the long-term presence of the San Antonio Spurs in the city. The meeting outlined key objectives and financial structures associated with the project, emphasizing a commitment to community benefits and risk mitigation for the city.

City officials presented five primary objectives for the term sheet: to avoid using existing city funds for the arena, to minimize the city's financial risk, to ensure private development on city property surrounding the arena, to negotiate a community benefits agreement over a 30-year term, and to guarantee the Spurs' long-term stay in San Antonio. The term sheet serves as a nonbinding framework for future negotiations, contingent upon the approval of a ballot measure regarding venue tax funding set for November 4.

The projected cost of the arena is approximately $1.3 billion, with the Spurs contributing $500 million, Bexar County providing up to $311 million, and the city potentially contributing up to $489 million. The Spurs will also be responsible for any cost overruns beyond the initial budget. Funding for the city’s contribution will come from various sources, including a lease agreement with the Spurs and new development in the area.

A significant aspect of the proposal includes a community benefits agreement, where the Spurs will contribute $2.5 million annually for community initiatives over the arena's 30-year lease, totaling $75 million. The Spurs also committed to maintaining their philanthropic efforts in the community and ensuring that all full-time employees at the arena receive a minimum wage set by the city.

The arena is expected to open around 2032, with plans for a renovation between the 13th and 15th years of operation. The city and the Spurs will collaborate on various logistical aspects, including parking and security for events. The council is set to review the proposal further, with staff recommending its approval to move forward with the project.