San Antonio Spurs' new arena proposal set for Bexar County vote

AUSTIN (Nexstar) -- Voters in Bexar County will decide if the San Antonio Spurs will get a new arena. A proposition on Tuesday's ballot calls for dedicating hundreds of millions of tax dollars toward a $1.3 billion arena plan for the NBA franchise.

Prop B would raise the county's hotel occupancy tax (HOT) from 1.75% to 2%, and would use that revenue to fund a new arena for the Spurs. Revenue would also come in from the county’s short-term motor vehicle rental tax. The proposition would fund approximately $311 million worth of construction and development. 

The city of San Antonio plans to contribute $489 million to the arena, while the Spurs have committed to covering $500 million of the costs for arena construction. The Spurs also have promised to pay 100% of any overruns in the budget. 

The new arena for the Spurs would be located downtown. The team currently plays in the Frost Bank Center on the east side of San Antonio. Supporters of Prop B say a new arena would attract further development, including a sports and entertainment district, and create jobs.

Prop B supporters say using revenue from hotel taxes and car rentals puts the tax increase on tourists rather than on people who live in Bexar County. Proponents have claimed that if approved, it would come at no cost to homeowners or renters, and that no money would be taken from city or county budgets.

Opponents question the claim that the arena would be entirely funded by tourists, claiming that if the revenue projections miss, then the pressure will be on to shift the burden onto property taxpayers. One prominent opponent of Prop B is COPS/Metro, a non-partisan, non-profit public advocacy group which argues that public dollars should primarily serve public purposes, rather than a private arena.

“Independent research across the country shows sports venues rarely deliver the broad economic gains promised. San Antonio deserves better priorities,” a statement on the group's website read.

Ultimately, the decision lies in the hands of voters, who will decide on Nov. 4 whether or not to approve the proposal.