SAN ANTONIO – The San Antonio City Council has recently approved the use of a special tax capture district to acquire a site in downtown San Antonio for a new arena for the Spurs. This decision also includes funding for significant projects at the San Antonio Zoo, the Botanical Garden, and Brackenridge Park.
The city plans to purchase the former site of the Institute of Texan Cultures from the University of Texas System for an estimated cost of up to $60 million. Additionally, the three other projects are projected to cost around $10 million each. However, when financing costs are taken into account, the total land purchase could exceed $115 million over time, while the other projects may approach $17 million each, culminating in a potential total expenditure of $166.3 million.
The final financial plans for these projects will still require council approval. During the council meeting, members voted 7-2, with two abstentions, to utilize the Midtown Tax Increment Reinvestment Zone (TIRZ) for funding these initiatives. There was considerable debate regarding the timeline for winding down the TIRZ and redirecting its property tax revenues into the broader city budget.
Midtown TIRZ map (City of San Antonio)
Tax Increment Reinvestment Zones like the Midtown TIRZ are designed to revitalize specific areas by allocating a portion of property tax revenues for local improvements or development support. Critics, however, argue that these zones divert funds from the general city budget, potentially neglecting broader city needs and services.
In a divided vote, Mayor Gina Ortiz Jones and Councilmember Jalen McKee-Rodriguez opposed the funding plan, while Teri Castillo and Ric Galvan abstained. Mayor Jones expressed concerns about extending the TIRZ and likened it to modern-day redlining, suggesting that the city could partially fund the projects without extending the TIRZ’s lifespan.
While the chosen arena site technically lies outside the Midtown TIRZ boundaries, it qualifies for funding under an exemption for public assembly venues. Councilmember Edward Mungia defended the decision, asserting that the residents of the Midtown TIRZ would not bear the financial burden of the Institute of Texan Cultures purchase.
The city staff anticipates closing on the property by the end of the year, which is separate from the projected $489 million share for the actual construction of the arena. The Botanical Garden project aims to develop a horticulture campus, while Brackenridge Park improvements will focus on restoring the Sunken Gardens and covering programming expenses. The zoo project seeks to create new facilities, including an animal hospital and expansion of the zoo west of U.S. 281.
To access TIRZ funding for these projects, matching funds will be required, ensuring that the investment benefits both the local community and the broader San Antonio area.
