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Alamodome/SBC Center Articles
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Alamodome/SBC Center Articles
SPURS PICK CONTRACTOR, PREPARE FOR FINANCING
November 16, 2000
Copyright 2000 MediaVentures
The San Antonio Spurs solved their "chicken and egg" question by picking Hunting Construction of Scottsdale, Ariz. and SpawGlass Contractors of San Antonio as contractors for their new arena. The move clears the way to arrange financing for the 18,500-seat venue which opens in 2002.
The team has been trying to secure its share of the total $175 million cost, plus refinance some of its existing debt. Lenders did not want to commit until a contractor had been selected. The selection also allows the county to sell bonds it needs for the project. Bonds were to have been sold in early October, but the Spurs had not yet selected a builder. The team had one deal ready to go, but terms changed and it collapsed. The team is putting $28.5 million into the arena, but is seeking financing for $80 million to $100 million in debt.
The county faced a Dec. 31 deadline to sell the bonds. State law requires sale within a year of the time when tax collection begins. The arena is being partially financed by an increase in hotel and car rental taxes.
SPURS BEGIN LUXURY SUITE SALES
With financing in place, the San Antonio Spurs have begun selling suites for the new $175 million SBC Center that opens in 2002. The team is also selling its 2,400 club seats.
The premium seating plan includes 16 courtside suites with the rest of the 50 planned suites on the upper level. Prices for the courtside suites has not been set, but the upper suites begin at $100,000 and seat 12. Courtside suites will also seat 12.
The team also plans 22 boxes holding four persons each and four superboxes holding 100 fans.
SPURS STILL SEEK ARENA FINANCING
October 19, 2000
Copyright 2000 MediaVenturesThe San Antonio Spurs are still trying to tie down financing for its $28.5 million share of a new $175 million arena. Bexar County is waiting for the team to complete the work so it can sell $146.5 million in bonds to finance the building now under construction. The team hopes to complete the deal by the end of the month.
The Spurs are using the opportunity to refinance all the team's debt and that is slowing the process. The team had one deal ready to go, but terms changed and it collapsed. The team is putting $28.5 million into the arena, but is seeking financing for $80 million to $100 million in debt.
The team must sign a contract with a contractor before the financing can be completed and county officials note they face a Dec. 31 deadline to sell the bonds. State law requires sale within a year of the time when tax collection begins. The 18,500-seat arena is being partially financed by an increase in hotel and car rental taxes.
San Antonio to give NBA arena rebate
SAN ANTONIO (December 13, 1995 - Associated Press) -- The city of San Antonio is expected to give the NBA a $200,000 rebate because the league says the demolition of HemisFair Arena will cause the NBA to lose money during All-Star weekend.
The city staff has recommended a rebate of $100,000 in cash and $100,000 in credits. The city council is expected to approve it on Thursday.
The league estimated it would lose $350,000 on its four-day NBA Jam Session as a result of the city's razing HemisFair Arena.
The All-Star game itself will be played in the nearby Alamodome.
The NBA wanted to use the arena to showcase practices of All-Stars and NBA rookie stars. As an alternate plan, a basketball court and seating for about 4,000 will be set up in the San Antonio Convention Center. It will be surrounded by the Jam Session's interactive games and exhibits.
"We negotiated on that, and we ended up with a $200,000 deal," said Eddie Garcia, director of the city's convention facilities.
Originally, the city included the arena in 1992 as part of its bid package for the 1996 All-Star Weekend and Jam Session.
The council since has voted to tear down the 16,000-seat arena to make way for expansion of the convention center. The arena already is being dismantled and is expected to be completely demolished by All-Star Weekend, Feb. 8-12.
New facility would harken back to old
By Johnny Ludden
Express-News Staff Writer
Wednesday, Aug 12, 1998
If Spurs executives get their $150 million wish, the proposed lavish new arena at Longhorn Quarry will feature seating for 18,500 people, corporate and party suites, a family fun zone, a pair of "super boxes" and smokestacks.
All, of course, to simulate the atmosphere of their original home.
"People remember the games at the HemisFair Arena and the noise and the intimacy that you had," Spurs chairman Peter Holt said. "That's what we're trying to create. That's what this is all about."
Architectural designs by Ellerbe Beckett -- a Minneapolis-based firm with the Washington Wizards' year-old MCI Center, the Boston Celtics' Fleet Center, the Portland Trail Blazers' Rose Garden Arena and the Arizona Diamondbacks' Bank One Ballpark to its credit -- call for the proposed arena to be split into 2,500 premium seats and 16,000 general-public seats.
The arena, which could be built in time for the 2001-02 NBA season, would be divided into five levels with the upper concourse seating 8,500.
Spurs officials said the proposed arena's seats would be 20 to 40 feet closer to the court than comparable seats at the Alamodome.
"What we're doing is sucking everything in," Holt said. "The nosebleed seats won't be nearly as nosebleed."
The arena will include 32 four- to six-person suites catering to small and mid-sized businesses, 38 larger corporate suites, 12 open boxes and two condominium-style "super boxes."
Party suites, which can be rented by the game and have been successful at the Utah Jazz's Delta Center, and a glass-enclosed interactive play area for children also have been proposed.
"We're trying to offer something that reaches every fan in every part of our marketplace," said Russ Bookbinder, Spurs executive vice president of business operations.
Bookbinder would not speculate on the cost of the suites, but said the Spurs will not significantly raise the price of their lower-end seats, currently priced between $9 and $32.
"We have to fill those upper seats," Holt said. "We know in San Antonio you're not going to get the same price as Chicago or New York.
"We've always been pretty fair on our pricing."
The external design of the arena is not finished, but Holt said the building probably will incorporate the smokestacks and existing buildings in the Longhorn Quarry.
The Northeast Side site off Interstate 35 and Thousand Oaks Drive would include 5,000 to 7,500 parking spaces -- more than double what the Alamodome features -- as well as park-and-ride transportation available from Blossom Athletic Center and Windsor Park Mall.
A transit station also would allow for a potential high-speed railway linking San Antonio and Austin.
Spurs officials said they studied more than 20 NBA stadiums while planning the new site. They compared the proposed venue to the Phoenix Suns' 19,000-seat America West Arena.
Bookbinder said the new arena would enable the Spurs to also pursue other sports and entertainment ventures, including the WNBA, indoor soccer and music concerts.
The Spurs have negotiated the rights to purchase a team in the Western Professional Hockey League.
"The reason we're looking at this," Bookbinder said, "is to stay viable to San Antonio, to stay competitive and to provide this community another level of entertainment."
Leaders keeping mum on Spurs proposal
Politicians waiting, gauging public opinion on proposal
By Christopher Anderson
Express-News Staff Writer
Sunday, August 16, 1998
Politicians are playing it smart by taking a "wait-and see" approach on a proposal to build a new arena for the San Antonio Spurs by diverting taxes, local observers said.
Decision-makers on the City Council, the North East School District board and the Bexar County Commissioners Court who have the power to approve the deal or kill it are keeping their options open.
"They're going to have to get off the fence in two or three months," said Larry Hufford, a political science professor at St. Mary's University, who believes politicians are smart to remain neutral for now.
"I think it's an intelligent position not to take a position at this time, because you don't have all the information," Hufford said.
The plan, proposed by the Spurs and developer Bitterblue Inc., calls for creation of a tax-increment finance (TIF) district to sell bonds to pay for a $150 million arena at the now-abandoned Longhorn Quarry site in the North East School District.
New commercial development generated inside the 3,200-acre TIF district would pay for the bonds.
Questions that remain unanswered include:
- How much development will have to be generated to make the bond payments on a $150 million arena?
- How much will the Spurs pay?
- Will parking, concessions and other revenues be shared?
Waiting may also prove to be politically wise since the public is just beginning to learn about the project and organized opposition could emerge.
If politicians line up in favor too quickly, they also may lose leverage in being able to strike the best possible deal for the community.
Still, some critical decisions are expected to be made this week that will help determine whether the dreams local developers have for the Longhorn Quarry, which has sat idle for a decade, will come true.
Councilman Jeff Webster, who has been asked to take the lead in pushing the project onto the council agenda because the quarry is located in his district, said he will make a decision before Thursday's meeting.
Council members said it was highly unlikely they would decide to authorize a 60-day public review of the project before next week.
"There are a lot of variables out there, and I'm going to know some answers before I put my name on any document," said Webster, adding he had to be certain private investors would take all the financial risk.
Several council members also plan to seek their colleagues' support in determining whether any physical or financial changes can be made to keep the Spurs playing in the Alamodome.
Council members also want to determine how badly the dome might be hurt if it loses the Spurs, its primary tenant, and if there is a possibility of building a new arena downtown.
"Part of the reason people are cautious is that there are not many other options on the table," Councilman Ed Garza said. "The other reason is that we've not had an opportunity to hear from the public."
Public opinion also is expected to be a huge factor in whether TIFs will be used to construct an arena. Most residents are unfamiliar with the economic development tool.
Polls have shown the public is overwhelmingly against using new taxes or fees to give the Spurs a new home, but polls also show the public wants the team to stay in San Antonio.
Politicians seeking re-election do not want to be perceived as helping run the team out of town or giving the Spurs whatever they want with no regard for protecting voters' interests.
"I think it's going to be more difficult today to ram one of these things through than ever before if there is not public support," said Charlie Conner, past president of Northside Neighborhoods Organized for Development.
Spurs executives and power brokers who want a new arena will try to win the public and the politicians over, Hufford said.
"There's going to be tremendous pressure," Hufford said. "It's going to be marketed as a compromise on the part of Spurs ownership and management. 'If this doesn't pass, they will leave.'
"There's also that veiled threat that you won't have (star player) Tim Duncan in this city," Hufford said.
"Another obvious way is contributions to your re-election campaign and whether or not you're going to have serious opposition."
Council support is the first hurdle, but not the only one. State law does not allow other taxing entities to participate in a TIF unless the city participates.
North East could lose state school aid if it joins the TIF, depending on how a state law is interpreted. That law reduces state aid to districts that join TIFs after Aug. 31, 1999.
The law is unclear about districts that join before that date, prompting North East officials to demand an escape clause if it signs a contract.
School Superintendent Richard Middleton has said he wouldn't even consider recommending the project until that ambiguity is clarified.
Gene Powell, a principal of Bitterblue, said the city, school district and county all must take part to make the project work financially.
County Judge Cyndi Krier and County Commissioner Mike Novak say they like the concept, but would want the city to share increased hotel-motel tax revenue and sales tax revenue with the county.
Commissioner Lyle Larson warned that everyone involved needs to agree in writing on how parking, concession and other revenues will be split before approving the construction of a new sports facility.
"What we did in the past with the Spurs is we lost our leverage," said Larson, who served on the council when the Spurs negotiated their lease to the Alamodome.
Commissioner Paul Elizondo said the Longhorn proposal appears more attractive than deals in which the public pays to build the arena on publicly owned land.
"This appears to be a much less involved, no-smoke-and-mirrors proposal," Elizondo said.
Beatrice Cortez, a leader/organizer for Communities Organized for Public Service, compared TIFS to tax abatements because both use public money to benefit private interests.
"The arena is paid for with money from future taxes," Cortez said. "It's not a freebie."
Before they support a North Side arena, Hufford said inner-city council members may demand their districts share in the benefits, perhaps with more money for revitalizing areas inside Loop 410.
Councilman José Menéndez said he would be more inclined to support the project if it benefited efforts to train and educate local people for better-paying jobs.
"I would like to see the people who stand to gain from this project make a commitment to help in the human development of the city," Menéndez said. "Some real effort must be made to create a human development fund."
The Spurs also must make a binding commitment to play in San Antonio for a long time, Garza said. "That's going to be a very critical point."
Heywood Sanders, professor of urban affairs at Trinity University, said he admired the way the Longhorn arena project has been marketed so far.
"It's a political masterstroke," Sanders said. "But it's not magic money."
Wednesday, January 20, 1999
Spurs might get new arena
Associated PressSAN ANTONIO -- After a failed attempt to build a publicly funded arena in an abandoned rock quarry, the San Antonio Spurs now may get an arena downtown next to the Alamodome.
Saying a new basketball arena should be downtown "where it belongs," San Antonio Mayor Howard Peak said he wants to meet with Spurs executives by the end of the month to discuss the site.
"This is a pleasant surprise," Spurs vice president Leo Gomez told the San Antonio Express-News after hearing of Peak's proposal Tuesday. "We've said all along we will listen to all ideas. If the mayor has an idea, we're ready to visit with the mayor and anyone else from the city."
Peak favors building a 20,000-seat center on the Alamodome's south parking lot, where it can share staff and maintenance costs with the dome, he told the Downtown Residents Association.
"This site makes the most sense from the city's standpoint, because it complements the infrastructure of major hotels, the dome and the convention center expansion that are nearby," Peak said.
The Spurs currently play in the 65,000-seat Alamodome. Team officials insist they need a smaller arena more suitable for basketball with lucrative luxury suites.
The mayor wouldn't say where the money would come from for a new arena, but he said one option could be a temporary sales tax increase. Any funding decision must go before the voters, Peak said.
The plan for a publicly funded arena on the city's northeast side was killed last month when North East School District trustees rejected the Spurs' tax-increment financing proposal.
Spurs owners offered to pay $20 million toward the $157 million arena. The rest of the project would have been financed over 30 years by property taxes on new development within a specified zone.
PUBLIC INDICATING LITTLE SUPPORT
FOR SPURS ARENA FINANCING PLAN
September 17, 1998A local school board president says voters are angry about the district's possible participation in a TIF district which could help fund a new arena for the NBA San Antonio Spurs. Voters have been calling school board members saying they will vote against a district referendum this month if the district participates in the plan. The referendum has nothing to do with the arena, but is to build five new schools, renovate others and buy computers for classrooms.
The Spurs are endorsing a developer's plan to build a retail, entertainment and golf course project at Longhorn Quarry. The development would include a new arena for the Spurs who now play in the Alamodome. The developer wants the city to own the arena and pay for it by creating a tax incremental financing district (TIF).
Here's how TIF districts generally work: When development occurs, the value of the land increases. The increased value means increased tax revenue. When a city creates a TIF district, it uses that increased revenue to pay for bonds it issued to help with the development – in this case an arena. However other taxing districts – like the county or school, water and fire districts – don't benefit from the increased value of the land. Their income is frozen at current levels, or at a level to which they have agreed, and all the new money is captured by the city for bond payments. Once the bonds are retired, the other tax districts can resume collecting taxes at the higher rates. The bonds proposed for this development would take 20 years to retire. While TIF districts make development self-funded, they do so at the expense of other taxing districts.
School officials have not taken a stand on the developer's plans, but have said they do have reservations about it. The developer and the Spurs outlined their plan to taxing district officials this week. The city council is scheduled to vote August 8, 1998 on opening a formal review of the plan. A vote on creating the district is planned for December 17, 1998.
McDermott says Spurs
in dome hurt conventionsBy Lesli Hicks
© 1996, San Antonio Express-News
Express-News Staff Writer
February 11, 1996San Antonio Spurs chairman Robert McDermott said keeping the team in the Alamodome is bad for convention business.
Because the Spurs use the Alamodome as many as 180 ``event days'' a year, the city can't book all major groups wanting to meet there, he said.
Steve Moore, executive director of the San Antonio Convention & Visitors Bureau, took issue with McDermott. ``Since 1993, the Alamodome has generated over $100 million in direct spending by visitors to San Antonio because of the facility,'' Moore said.
Want examples? The dome was the main site of the 1993 U.S. Olympic Festival, a convention of 28,000 Lutheran youths, 6,200 Mary Kay representatives, and the NBA All-Star Game, he said.
"These events in the Alamodome have been booked around Spurs' event dates,'' Moore said, adding the bureau has ``first option'' on dome dates at least two years out thanks to a "checkerboard'' approach.
"With some exceptions, the majority of large conventions meet after the Spurs season is completed,'' he said.
"Scheduling is complex, but it is manageable.''
The viability of the Alamodome was much discussed last week as the facility was readied for the All-Star Game and the question of a new home for the Spurs leaped to center court.
Among the debate topics was McDermott's contention that the city's business leaders erred by supporting construction for the 60,000-seat, multipurpose stadium.
But any plan to build a new arena for the Spurs - wherever it is or whoever pays for it - involves a multitude of issues.
Although San Antonio is the ninth-largest U.S. city, it's still one of the smallest television media markets for an NBA team, McDermott said.
To build the market, the Spurs board is studying locating in the team's own, privately funded facility between the Alamo City and Austin, drawing from a wider, more affluent population base.
Ideally, the money would come from corporate or individual investors, McDermott said.
Once achieved, a bigger San Antonio-region market could help the city support a National Football League team someday.
"My view was and still is that San Antonio is not a large enough market to support both an NFL franchise and NBA franchise,'' McDermott said.
"I think we owe it to the Spurs and to our city to build an arena for the Spurs. No other city is playing basketball in a football stadium."
His goal is to pay for an arena privately, which he believes is possible, but he also wouldn't rule out a public-private partnership.
However, he insists he's not a proponent of raising taxes for that purpose before exploring other options.
``I'm for competitive out-sourcing,'' he said, referring to use of competitive bidding for such projects.
``If it can be done better by the county or the state or the federal government or private industry let them do it - any one of these,'' McDermott said.
The Spurs contract with the dome gives the team a 90-day ``out'' but no move would be made during the season. McDermott wants to resolve this question about the time the season ends in June.
``What we feel is, `Let's not upset the team in any way.' We've got a good product and we want it to do as well as it can and not have any extraneous concerns,'' he said.
``We don't want them thinking, `Well, we're going to move to Boston or Toronto or Anaheim or Kansas City or any other place.' ''
There would be advantages and disadvantages to building the Spurs arena in downtown San Antonio or at any of several sites along Interstate 35, including at Retama Park and Freeman Coliseum.
Outlying sites could cost the Spurs spectators visiting San Antonio who'd view a drive north as troublesome.
Conversely, Austinites might not want to travel 75 miles south were the arena in the city's heart.
High-speed rail lines combined with the region's existing public transportation could solve that dilemma in the long run, McDermott said.
``That's the visionary in him,'' said one source familiar with behind-the-scenes machinations for an arena. ``He's looking 15 years out.''
Said McDermott:
``We're looking at all of our alternatives because what we see is, any adjustment in the Alamodome itself is going to be very expensive - (up) to $50 million.
``Not until the Spurs move out will we have the opportunity to use the Alamodome to serve its original purposes as promoted by the business leadership: to support conventions and business meetings,'' he said.
``(Mayor Bill Thornton) must face up to the realities that the city cannot support two sports franchises at this time, and he should support the existing successful NBA franchise in its quest for a new arena,'' McDermott said.
Thornton last week emphatically dismissed the notion of the city building a new arena for the Spurs.
Despite some public perception the dome was built for the Spurs, in the build-or-not-to dome debate in 1989, then-Mayor Henry Cisneros told the San Antonio Express-News, ``The impression of the Alamodome as strictly a sports facility is a myth I am trying to dispel.
``For every sports event there will be 20 others such as conventions and trade shows.''
Then-Councilwoman Maria Berriozabal said a few days later: ``It is not a sports complex. It's a stadium for expansion of the convention center.''
The aging convention center is undergoing a $175 million expansion doubling its space to just more than 450,000 square feet by 2001 with the help of hotel-motel taxes.
McDermott and other NBA boosters say a 17,000- to 18,000-seat arena would be ideal for the Spurs and other entertainment events.
Moore said the dome has benefited the city's efforts to snare bigger and better conventions.
``Because of the dome, San Antonio has been in a position to bid for additional mega events such as national political conventions and the 2001 Rotary International meeting,'' he said.
``Events in the dome are not related to the convention-center expansion plans,'' he said.
``The Alamodome has always complemented our existing and future convention facilities and marketing plans.''
Separately Friday, Robert Herres, chairman of USAA - one of the team's 21 investors - said San Antonio eventually is going to want a new arena.
``The question is simply when, where, and how,'' Herres said.
``I hope the community can engage in a rational and constructive discussion of those three questions,'' he said.
That's consistent with his comments in July, Herres said.
At that time, Herres wrote:
``When the day comes that the city has difficulty meeting the scheduling demand for more activities in the dome - and hopefully that day will come before too long - we should think about the various alternatives that exist for a privately financed arena.''
SAN ANTONIO MAYOR TAKES HARD LINE ON ARENA
July 15, 1999
Copyright 1999 MediaventuresSan Antonio Mayor Howard Peak says he's not interested in talking with Bexar County about putting a new arena for the NBA Spurs at the fairgrounds near Freeman Coliseum. Peak believes a new arena should be built downtown and it should be operated by the city along with the Alamodome where the team now plays. Peak sees another arena as a threat to the operation of the Alamodome once the team leaves.
County officials have suggested building a new arena on 200 acres of land they own near the 50-year-old Coliseum. The new arena could also be home to the San Antonio Livestock Exposition. They had suggested a joint city-county board to investigate not only the fairgrounds site, but others to determine which would be best. Peak wants to hold off appointing city members to the board, feeling the county and city are at cross purposes on the issue. The city is talking with the Spurs and Peak believes both sides should work on plans, then come together once there are proposals to discuss.
SAN ANTONIO VOTERS COULD FACE TWO ARENA ISSUES
July 22, 1999
Copyright 1999 MediaVenturesThe city and county could have two separate arena proposals on the ballot this November. The city has rejected a proposal from the county to explore the best solution for a new arena with Mayor Howard Peak believing the new arena for the NBA Spurs should be built downtown next to the Alamodome. The county does not oppose the site, but believes land adjacent to Freeman Coliseum should also be considered. The county wants to avoid the two-issue problem and believes some city council members may be swayed to their viewpoint.
Peak has been meeting with citizens to get their reaction to his arena plan and says the public is evenly split on their support of public money for a new arena. His view is supported by a new poll that shows 60% are opposed to using tax dollars to fund a new arena. The poll was taken after the team won the NBA finals and also showed that the public wants to keep the team in San Antonio. The poll found that support for use of public money was greater than when residents were polled on the issue last year. The percentage opposed has not changed. The poll has an error margin of 3%.
SPURS' SUCCESS BRINGS TALK OF NEW ARENA
June 17, 1999
Copyright 1999 MediaVenturesA San Antonio city council member is suggesting the city renovate the county-owned Freeman Coliseum or build a new arena for the team on its site, but the city's mayor and city manager want to see the arena built adjacent to the Alamodome where the team now plays.
The Spurs have been rebuffed in earlier efforts to get public funding for a new arena, but with the team's strong showing in the NBA finals, it may have a chance to win public support as well.
Both sites have the advantage of existing parking and infrastructure, but the councilman, Mario Salas, believes the Freeman Coliseum site would help invigorate the neighborhood. County officials also seem open to the idea. The Coliseum is the home of the CHL Iguanas and the Stock Show & Rodeo.
The mayor believes having the arena next to the Alamodome helps enhance the city's convention facilities, but he acknowledges money is an issue if the city acts alone.
Last year the team tried to build an arena as part of a new commercial and residential development, using new taxes generated by the development to pay for construction. Area school districts objected, saying they would lose the new tax revenue, but have to deal with the cost of educating the children that would move into the proposed housing.
Research at the time showed the city needs a new arena to attract shows and concerts and that won't fit comfortably into the Alamodome. The research also showed there is a role for the Alamodome and that it can still be profitable if the Spurs move out.
SPURS' SUCCESS RENEWS PUSH FOR NEW ARENA
July 8, 1999
Copyright 1999 MediaVenturesCity officials hope to ride the NBA Spurs' title victory to a successful vote to fund a new arena for the team. Last year the team tried to win approval of a financing plan to build a new arena, but the issue died before it could reach voters. This year, with the NBA title in its pocket, the team is in a better position to work out a deal with the city that will meet voter approval. If the issue is to go before voters this November, the plan must be ready for certification next month.
The city would like to see the venue built next to the Alamodome where the necessary infrastructure already exists. County officials, however, want to see the arena built next to Freeman Coliseum on the fair grounds, or see the Coliseum remodeled for the team. The Spurs are on the bench, letting the political leaders work out the details before making a comment.
Officials from the team, city, county and Stock Show and Rodeo have met once to begin discussing a plan, but no solid proposal has been formed.
SPURS HOPE SOUTHWESTERN BELL WILL NAME NEW ARENA
July 29, 1999
Copyright 1999 MediaVenturesWhile city and county officials wrestle over where a new arena for the San Antonio Spurs should be built, the team is talking with Southwestern Bell about putting its name on the proposed venue. No financing plan for the arena has been fixed and voters have yet to weigh in on the issue, but the team is shopping for possible naming rights buyers. The company, whose parent is SBC Communications Inc, owns 7% of the team.
Southwestern Bell already holds naming rights for a ballpark in Oklahoma City and is a sponsor of the Big 12 Conference and the Cotton Bowl. The company has sponsorship deals with individual teams.
Meanwhile, the county is proposing to the city that a sports authority be created to market the new arena, the Alamodome and the county's Freeman Coliseum. The county had earlier proposed a joint committee to study the best site for an arena, but the city rejected the notion. Mayor Howard Peak favors a site next to the Alamodome while the county has suggested land adjacent to Freeman Coliseum. Peak is concerned the new arena could siphon business from the Alamodome and want to make sure the venues work cooperatively. The county suggested the authority as a mechanism to do that. Peak agreed, but said the authority would not solve the problem of where to locate the arena. The city hopes to come up with a financing plan by Aug. 12, but it must have one ready by Sept. 17 to be eligible for the November ballot.
BEXAR COUNTY READIES SPURS ARENA PLAN
August 5, 1999
Copyright 1999 MediaVenturesBexar County officials have decided not to wait for the city and are putting together their own proposal to build a new arena for the San Antonio Spurs. The county is preparing a $175 million plan that would use $3 gathered from each parking ticket, a 10% ticket tax, a 2% increase in the hotel-motel tax and a 5% increase in car rental taxes to fund the project. The current car rental tax is 10% and the hotel-motel tax is 15%. The county will want a 30-year lease from the team and its promise to pay for cost overruns. The tax figures could change, depending on how much the Spurs contribute to the arena.
The county's project includes parking and other revenue from the San Antonio Livestock Exposition Inc, which would be a major tenant in the new building. The county is considering building an arena adjacent to Freeman Coliseum, the rodeo's current home. The Coliseum also houses the CHL Iguanas. The new venue would have 18,000 to 20,000 seats. The cost includes $35 million in Coliseum renovations.
The city is working on a $219 million proposal for an arena and parking garage adjacent to the Alamodome downtown to be funded with a 10-year, half-cent sales tax. The city wants to have its proposal ready, with a commitment from the Spurs, by August 12. It's believed the team must contribute $30 million to $40 million under the city's plan. Both issues could go before voters this fall. A citizens group has already promised to target three or four councilmembers for recall if a sale tax increase proposal is put on the November ballot.
SPURS CHOOSE COUNTY OPTION FOR NEW ARENA
August 12, 1999
Copyright 1999 MediaVenturesThe San Antonio Spurs made a choice Wednesday and opted for the county's plan to build a new arena adjacent to Freeman Coliseum rather than go with the city which preferred a new venue next to the Alamodome. For the team, the issue came down to public opposition to a proposed sales tax that would be needed for the city's plan. The county would get money from hotel/motel and car rental taxes, along with user-based sources for the $175 million arena. The decision means the team will suspend talks with the city.
The city and county had been working on separate plans after the city rejected county overtures to plot a common path. City officials are concerned that a new arena could threaten the profitability of the Alamodome and wanted to control both venues. The county came back with an offer to create a sports authority that would oversee the Alamodome, a new arena and the county's Freeman Coliseum, but the city still declined.
The county must will work out details of its plan and the Spurs must say how much they are willing to contribute to the new arena. That work must be done by Tuesday so state officials can approve ballot language for November's vote. If approved, the new venue could open in 2002.
Nearly 60% of San Antonio residents polled say they are opposed to an increase in the sales tax to fund a new arena for the Spurs, but a larger margin, 66%, says a tax increase would be fine to pay for city infrastructure improvements. There is similar support for new taxes for job training, education and childhood development programs. The poll was conducted privately by six council members and has a margin of error of 4%.
The arena question found 44% in favor of a *-cent sales tax over 20 years. The city proposed a *-cent tax over 10 years.
The county's proposal does not call for a sales tax increase, but does require an increase in the hotel and car rental taxes, a ticket fee and parking taxes. The idea is opposed by those who profit from the tourist business who believe the taxes are already too high. The increase would put San Antonio on a par with Houston as having the highest hotel taxes in the nation. Houston's tax is 17%.
Another benefit to the county's plan is that the Freeman Coliseum is already host to the San Antonio Livestock Show. The major show draws large crowds that can help pay the cost of the new venue.
The poll also showed that voters by a slim margin preferred the idea of a new arena near the county's Freeman Coliseum as opposed to downtown near the Alamodome as the city has proposed. City officials said the question did not reflect the fact that parking is included in the city's proposal and residents believe more downtown parking is needed.
The Spurs have reportedly conducted their own poll, but those results have not been made public. Reports say the Spurs' poll shows the public favors a sports authority to oversee the Coliseum, Alamodome and new arena.
The new arena would cut business at the Alamodome where the team held 40% of the venue's total event dates. In a campaign last year for a new arena at a different location, the Spurs expressed confidence they could replace many of those dates and keep the venue profitable. The team pays nearly $1.5 million a year for its lease.
SPURS, BEXAR COUNTY AGREE ON NEW ARENA PLAN
August 19, 1999
Copyright 1999 MediaVenturesThe San Antonio Spurs will contribute $28.5 million up front toward a new $175 million arena along with $1.3 million in annual lease payments. The team will sign a 25-year lease, but will have the option to buy it out after 20 years.
The county would get money for its share from hotel/motel and car rental taxes, along with user-based sources. Voters will be asked in November to approve an increase in the taxes. The team will have the option of selling naming rights to the new arena and can use that money toward its contribution.
The deal eliminates the city's plan of building a new arena adjacent to the team's current home, the Alamodome, where it pays $1.5 million a year for its lease. The city and county had been working on separate plans after the city rejected county overtures to plot a common path. City officials are concerned that a new arena could threaten the profitability of the Alamodome and wanted to control both venues. The county came back with an offer to create a sports authority that would oversee the Alamodome, a new arena and the county's Freeman Coliseum, but the city still declined.
As the plan was formally announced, Mayor Howard Peak expressed opposition and demanded that the county say whether the new venue would hurt the city's investment in the Alamodome and the tourist industry. Observers said the mayor would withhold his support until the questions were answered. County Judge Cyndi Krier told the San Antonio Express News, "I didn't find either of ... (the letters from the mayor)... constructive in working toward meeting this community's needs. We tried for weeks to meet (with the city) in a constructive manner."
San Antonio votes on an arena
October 21, 1999
Copyright 1999 MediaVenturesIt will be the NBA Spurs second grasp for the brass ring as it finally gets a chance to ask voters to approve funds for a new arena. Voters are being asked to boost the hotel/motel and car rental taxes to provide money for a $175 million arena adjacent to Freeman Coliseum on the county's fair grounds. The venue would seat 18,500 for basketball and have 50 luxury suites. The arena will also be the home of the San Antonio Stock Show and Rodeo. The Spurs will contribute $28.5 million to the cost. Taxes will pay for the balance. The Spurs will be responsible for cost overruns and the arena is scheduled to open in 2002.
The issue is heavily opposed by the local tourist industry which has built a respectable war chest to fight the tax. If the Spurs lose, they say they won't try again for a new venue. That also means they probably would leave town because the Alamodome does not meet their financial needs.
The lease agreement calls for the team to manage the arena and keep earnings from its games. The Spurs will give up 20% of net operating revenue above $4.75 million and 20% of any naming rights sale above $1.875 million a year. The team will be responsible for environmental clean-up of the building site and improvements to area streets, water and sewer mains and electric systems. The Spurs have agreed to a 25-year lease and have agreed to penalties should it leave the arena before the end of the term.
The agreement also allows the Spurs to enact a $1 ticket fee for NBA games and a $1 parking surcharge to help fund arena construction. The team will pay $1.3 million in rent and must invest $1 million a year in a capital repair and replacement fund. The team gets all arena revenue, except that generated during the rodeo and stock show. The Spurs must give the county 20% of all non-sports profit it earns over $4.75 million. The team is also required to give up 20% of all naming rights revenue it gets above $1.875 million a year. The rodeo will pay $1.2 million a year in rent and have access to the arena for 23 days a year.
The Spurs have indicated they would be willing to contribute $9 million toward renovation of the building into a practice facility.
October 28, 1999
Copyright 1999 MediaVenturesThe issue is too close to call in San Antonio where next week voters will decide whether to increase hotel/motel and car rental taxes to help fund a new $175 million arena that will host the NBA Spurs. A poll by the San Antonio Express-News shows 43.7% in favor, 37.6% opposed and 17% undecided. The poll's error rate is 4.6%. County election officials expect a 22% turnout for the election.
The results show support slipping from 50.7% in favor and 36.6% opposed in October. The figures suggest that support for the issue is soft with supporters slipping into the undecided column. The October poll started before opponents began their media campaign. The advertising for both opponents and proponents is expected to increase this week. The hospitality industry opposes the tax and believes the increased taxes would hurt business.
The issue has also been criticized by Mayor Howard Peak who lost a political battle with the county over where to build the venue. Peak is suggesting he will charge the county up to $9.15 million in street improvement costs, rather than share the expense. The action differs from a city-county agreement signed before the issue was put before voters and includes significantly more construction. That agreement noted just $3.5 million in costs to be divided between the governments. The complaint, coming so close to the election, caused county officials to rethink their position and agree to divide up to $15.5 million in improvements.
On another issue, County Judge Cyndi Krier says the arena is crucial to the city being awarded the 2007 Pan American Games. The city is bidding for the games and has permission by the US Olympic Committee to represent the United States. The selection will be made in 2002.
An enthusiastic yes for a new Spurs arena
November 4, 1999
Copyright 1999 MediaVenturesSupport for a new arena in San Antonio was running at 60% as election officials worked to straighten out some vote counting problems. County officials said despite the problems, they expected the issue to pass easily. Construction of the new $175 million arena begins next spring and it will open in 2002.
The issue survived a challenge by the city's hotel and motel industry which will now see taxes on those services increase. The increase will generate $146.5 million toward the arena while the team puts in $28.5 million.
The venue will seat 18,500 for basketball and have 50 luxury suites. The arena will also be the home of the San Antonio Stock Show and Rodeo.
The lease agreement calls for the team to manage the arena and keep earnings from its games. The Spurs will give up 20% of net operating revenue above $4.75 million and 20% of any naming rights sale above $1.875 million a year. The team will be responsible for environmental clean-up of the building site and improvements to area streets, water and sewer mains and electric systems. The Spurs have agreed to a 25-year lease and have agreed to penalties should it leave the arena before the end of the term.
The agreement also allows the Spurs to enact a $1 ticket fee for NBA games and a $1 parking surcharge to help fund arena construction. The team will pay $1.3 million in rent and must invest $1 million a year in a capital repair and replacement fund. The team gets all arena revenue, except that generated during the rodeo and stock show. The rodeo will pay $1.2 million a year in rent and have access to the arena for 23 days a year.
The Spurs have indicated they would be willing to contribute $9 million toward renovation of the building into a practice facility.
Spurs break ground on new arena
By David Hebert
KENS 5 Eyewitness News
August 23, 2000Almost two years ago they broke new ground by becoming the first former ABA team to win an NBA championship. Now the San Antonio Spurs are breaking new ground again.
This time it was a ground-breaking ceremony at the site of their new arena.
In a lot of ways today's ceremony is just like the new arena itself -- heavily influenced by the past but with the future hovering overhead at all times.
"People love that old Hemisphere Arena. You were sitting right on top of the game, and the noise level was second to none in the NBA. We're going to try to recreate that, but with new technology," said Spurs Chairman Peter Holt.
And Holt says it's not just the players who are going to notice the new technology. For example, a handful of seats are going to be outfitted with a computer screen where fans can either call up their waitress or call up a stat.
"We're going to wire that whole building. So the potential, both short-term and long-term, not only ordering drinks from your seat, but getting your stats. In other words you'll be watching David Robinson run up and down, you can punch up David Robinson and it'll show you all the stats for this year," Holt said
But for most fans it's not important what gadgets the seat has, it's just where the seat is located. And the biggest promise from arena designers is that everyone will feel like they're right in the middle of the action.
"I don't think we should ever forget where we came from and who was the ones who made this all possible. Without the past, there's no future," said former Spur George Gervin.
And the current spurs seem to agree, looking forward to a new home in the new millenium, but all the while knowing that every now and then it's not so bad to revisit the past.
The new arena should seat about 18,500 people once it's finished.
SBC involvement helps keep Spurs tickets affordable for families
SBC Communications Buys Naming Rights to New Facility
SAN ANTONIO, July 19, 2000 — What's in a name? How about 150-200 annual events, including Spurs basketball games, a world-class rodeo, concerts, shows and high-tech business meetings? For San Antonians, all that and more soon will be synonymous with the name SBC Center.
With participation by officials from Bexar County, the City of San Antonio and the San Antonio Livestock Exposition, the San Antonio Spurs today announced a 20-year, $41 million naming-rights sponsorship with locally based SBC Communications Inc. for the SBC Center, which will be built adjacent to the Freeman Coliseum in east San Antonio.
"Today's announcement underscores SBC's commitment to San Antonio, the Spurs and the Stock Show and Rodeo," said Edward E. Whitacre, Jr., chairman and CEO, SBC Communications. "We are grateful to call San Antonio home, and we are pleased to be associated with a state-of-the-art facility that will benefit our community. This deal makes good business sense for our company and offers outstanding branding and marketing opportunities moving forward."
The SBC Center complements SBC's portfolio of high-profile event sponsorships, including three SENIOR PGA TOUR golf tournaments (SBC Championship, San Antonio; SBC Senior Open, Long Grove, Ill.; SBC Senior Classic, Los Angeles), the SBC Cotton Bowl Classic in Dallas, Pacific Bell Park in San Francisco and Jones SBC Stadium in Lubbock.
"The SBC Center will be custom-made for San Antonio, worthy of the best fans in the NBA," said Peter Holt, chairman, San Antonio Spurs. "The players and the entire Spurs organization are grateful to SBC for its ongoing commitment to the team and to our community. Thanks to SBC, we will be able to offer something for everyone at the SBC Center."
Affordable Tickets
SBC and the Spurs also have worked together to make several thousand tickets at each Spurs game affordable for San Antonio families. The Spurs estimate that in 2002, there will be more than 5,000 seats available each game for under $25 each, with approximately 1,500 of those tickets priced at less than $10.High-Tech Capabilities
With SBC as naming rights sponsor, the Spurs expect the SBC Center will provide a high-tech environment for events and business meetings, with state-of-the-art video displays, scoreboards and Internet access."We will be able to call upon SBC's expertise in data communications to help all fans enjoy the ultimate interactive experience — either from their seats or from anticipated fan zones," said Holt. "We also anticipate that the SBC Center will feature ideal amenities for business conferences and meetings."
Increased Scholarships
The SBC Center also is expected to increase the number of scholarships offered by the San Antonio Livestock Exposition. "The SBC Center will fulfill our number one desire for more seats, which means more scholarships for young people," said Mary Nan West, chairman, San Antonio Livestock Exposition. "With SBC involved in the project, we are sure to have one of the most high-tech sites for any stock show and rodeo in the world."In addition to the naming rights agreement for the SBC Center, SBC will structure its sponsorship agreements with the Spurs and the Livestock Exposition to coincide with the naming rights deal.
SBC's sponsorship with the San Antonio Livestock Exposition will result in more than $50,000 annually in scholarship funds for area students.
County and Spurs officials expect the SBC Center to host between 150 and 200 events each year, including NBA and WNBA basketball games, the San Antonio Livestock Exposition, other sporting events, family shows and concerts. Construction of the $175 million, 18,500-seat SBC Center should be completed in time for the 2002-03 NBA season.
SBC has approximately 8,000 employees in San Antonio, making it one of the city's largest private employers.
SBC Communications Inc. (www.sbc.com) is a global communications leader. Through its subsidiaries' trusted brands - Southwestern Bell, Ameritech, Pacific Bell, SBC Telecom, Nevada Bell, SNET and Cellular One - and world-class network, SBC's subsidiaries provide local and long-distance phone service, wireless and data communications, paging, high-speed Internet access and messaging, cable and satellite television, security services and telecommunications equipment, as well as directory advertising and publishing. In the United States, the company currently has 90.4 million voice grade equivalent lines, 11.2 million wireless customers and is undertaking a national expansion program that will bring SBC service to an additional 30 markets. Internationally, SBC has telecommunications investments in 23 countries. With more than 204,000 employees, SBC is the 13th largest employer in the U.S., with annual revenues that rank it among the largest Fortune 500 companies.
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