Bexar County court seeks state review for possible hotel tax increase to fund Freeman Coliseum upgrades and a new Spurs arena

Bexar County Commissioners Court on June 10 approved a resolution asking the Texas Comptroller of Public Accounts to review a proposed venue funding plan that would dedicate motor-vehicle rental and hotel-occupancy tax proceeds to two projects: renovation and redevelopment of the Freeman Coliseum grounds (including Frost Bank Center maintenance) and a proposed new downtown multipurpose arena that would be the future home of the San Antonio Spurs. The court’s action authorizes county staff to submit the resolution to the comptroller for the statutorily required review under Chapter 334 of the Texas Local Government Code.

The measure matters because it would not use property taxes or the county’s general fund; instead the proposal relies on visitor-based taxes. Under the draft framework approved for review the county would preserve the existing 5% motor-vehicle rental tax and raise the county hotel-occupancy tax from 1.75% to the maximum permitted 2%. County staff estimated the venue-tax increase would yield just short of $450 million toward the two projects; the Freeman/rodeo grounds program was discussed in the court record in the range of about $194 million and the Frost Bank Center maintenance needs were discussed at roughly $80 million. The court and outside advisers said the precise split of proceeds among projects, and private and city contributions, remain to be negotiated and disclosed before any final deal.

Public comments at the hearing were sharply divided. Spurs-affiliated speakers asked the court to proceed so voters could consider the proposal. Peter John Holt Jr., a Spurs-area speaker, told the court: “So we are incredibly grateful. We’re here to ask for your support, and we’re here to make the commitment that we will work with you and your teams to ensure that this process is, impact full in an incredibly positive way and beneficial to all.” Opponents voiced concern about public subsidies for private sports facilities and demanded more detail on private investment and community benefits. Arturo Rodriguez, a COPS Metro leader, urged the court to consider alternatives and told commissioners, “This money could be used in ways that could lift up the residents of Bexar County.” Deborah Garrett, another COPS Metro leader, said the group opposed “a blank check with public money for private development.”

Members of the court debated the motion at length. Commissioner Justin Moody said he supports the rodeo renovation but opposed raising the venue tax, calling the proposed increase “a bridge too far for me.” Judge Keith Sakai repeatedly cautioned that the court’s vote was an initial, procedural step: “All we’re doing is taking 1 step to get there,” he said, explaining the comptroller review and later local procedural deadlines. The court approved the resolution by voice vote; the measure moves the county to the next statutorily required step — seeking the comptroller’s finding that a November election would cause no harm to the state. If the comptroller clears that review, the court would still need to decide whether to call a November election; state law requires jurisdictions to call a ballot by mid‑August to appear on a November ballot.

Why this matters locally: the funding source in the proposal is a tourist-oriented tax paid predominantly by visitors who rent vehicles or stay in hotels; commissioners emphasized the tax would not be an ad-valorem property tax increase. However, opponents said the same visitor taxes could be spent on other county priorities such as workforce wages, sidewalks and affordable housing. Supporters argued a downtown arena and Freeman upgrades would generate visitor spending, events and long-term economic activity that supports jobs, hotels and restaurants.

Next steps: county staff will submit the resolution to the Comptroller under Chapter 334 for review; staff and legal advisers will continue negotiating the allocation of proceeds between the Freeman/rodeo program and any downtown arena proposal. Any final decision to call a public referendum would return to commissioners before the August order-deadline required for a November election.

Votes and motions: Commissioner Clay Flores moved the resolution; Commissioner Rodriguez seconded. The court approved the motion and directed staff to proceed with the comptroller submission. Commissioners recorded no formal dissents on the submission vote; several commissioners registered public reservations about increasing the hotel tax and emphasized the need for more detail on private funding and community protections.

Community reaction and follow-up: COPS Metro and community advocates said they will press for stronger, enforceable community benefits and for clearer private investment disclosure before any election. County staff and Spurs representatives said they will continue negotiating terms and produce more detailed financial models and benefit commitments for public review ahead of any final decision.