Government
BY PARKS KUGLE
City, County explore Project Marvel funding
Project Marvel The proposed projects stretch from the Alamodome to the Henry B. González Convention Center
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Entertainment and Sports District
Expansions/proposals
Alamodome Event Venue Entertainment Venue Henry B. González Convention Center University of Texas at San Antonio School of Hospitality & Convention Center Hotel New Spurs Arena
As plans for the new sports and entertainment district continue to develop, the Bexar County Commissioners Court is eyeing a potential way for the county to fund the construction of the new Spurs Arena. On Aug. 5, County Commissioners voted to place a venue sales tax election on the Nov. 4 ballot. The venue sales tax proposes increasing the hotel occupancy tax, or HOT, from 1.75% to 2%. Current situation The increased HOT—which would raise an estimated $450 million —would fund the renovation of the Freeman Coliseum and the development of a new multi-purpose downtown arena. The propo- sition would also authorize the county to use funds from the existing 5% motor vehicle rental tax. Estimated to net roughly $175 million in funding for the new Spurs Arena, county officials stressed that revenue generated by the increased HOT and the motor vehicle rental tax would be used to main- tain county properties, such as the Frost Bank Center and the Freeman Coliseum, before any funding would be used on the new Spurs Arena. “We have made a commitment that we want to make sure that the county facilities, the Eastside community, is included according to statute, because that tax can only be used for certain things, and if there’s anything left over, then we will see what we can do to keep the Spurs in San Antonio,” said Bexar County Judge Peter Sakai.
SOURCE: CITY OF SAN ANTONIO/COMMUNITY IMPACT
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• San Antonio Spurs: $500 million in funding from the San Antonio Spurs to support the construction of the new NBA arena • Venue Tax: a proposed hotel occupancy tax increase from 1.75% to 2% and a car rental tax of 5% to fund venues • Federal Funding: received from federal govern- ment sources, such as program grants The backstory In July, City Council received a pledge from the Spurs to invest $500 million in the construction of the new arena. If the proposed venue tax increase is approved by voters in the Nov. 4 election, the County would cover approximately 25% of the arena cost using venue sales tax revenue, while the City would cover an estimated $350-$500 million .
The proposal is the newest move towards the construction of the new sports and entertainment district, and would assist in funding the project alongside San Antonio’s newest project financing zone, or PFZ, which the City Council voted to form in May. The PFZ is a 3-mile zone centered around the Henry B. Gonzalez Convention Center and allows the city to capture incremental state-associated HOT tax revenue over a 30-year period. Potential funding sources include: • Project Finance Zone: a designated zone where taxes from businesses and venues are captured • Tax Increment Reinvestment Zone: allows the city to capture incremental increases in property taxes to support development within the boundaries of the zone • Private Funding: funding from sources, such as equity investments, naming rights and team contributions
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