One sports stadium patsy leaves, one enters: Bexar County Judge Peter Sakai, who last month declared that he would put a hold on any public referendum on using taxpayer money for a new San Antonio Spurs arena until somebody figured out how much it would cost, now says ah, hell with it, let’s get this show on the road:
The Commissioners Court voted 4-1 Tuesday to allow Sakai to negotiate a memorandum of understanding with the city of San Antonio and the Spurs that would create a framework for them to discuss holding a future venue tax election.
“This is just a starting point to collaboratively assess, explore and evaluate,” Sakai said. “There is no deal. There is no agreement.”
No, it’s not an agreement, but an MOU would be an agreement, so an agreement is very much what Sakai is now working on. The San Antonio Express-News reports that an arena deal could include two piles of tax money: county hotel taxes and county car rental taxes, which would be worth $397 million if the county hotel tas remains at its current 1.75% or $449 million if it’s raised to 2%. The newspaper neglected to indicate if those numbers are present value or cumulative over many years, and if so how many years. (RIP, editors, you had a good run.)
So let’s try to do some quick calculations: The county hotel tax amounted to $21.3 million in revenue in 2023, while the car rental tax was $12.2 million. Extend that out over 30 years, and you could pay off about $500 million in arena costs by siphoning off the taxes to pay for a new arena rather than keeping them to spend on other public needs — and likely more than that if hotel and car rental spending increases over time.
Sakai and other county officials emphasized they also have a responsibility to maintain the Frost Bank Center and Freeman Coliseum, which are estimated to need at least $100 million worth of upgrades and help improve the surrounding area.
The tax has been used in the past for projects like San Antonio River improvements, performing arts and amateur sports facilities.
“That pool of money is the pool of money you have to do all of those things,” [Bexar County Manager David] Smith said.
Presumably all of that pool of money has until now been used to do other things, so really any money spent on an arena would come at the cost of not doing other stuff. It would be nice to have a list of where that money is going currently, but again, this is 2025 journalism we’re dealing with here, we need to temper our expectations.
All of this would still need voter approval in November, because Sakai missed the deadline for a spring referendum by waiting until now. At least that gives San Antonio residents nine months to ask some pointed questions — local journalists can start things off if they want, but I’m not exactly holding my breath.

