The Spurs’ Peter Holt speaks to reporters following county approval of the arena project in November. Credit: Sanford Nowlin

Will the San Antonio Spurs pay for $200 million-plus in upgrades to the infrastructure around Hemisfair rather than have a city issued bond measure to cover that work go to a public vote?

That’s the question political experts and City Hall observers are pondering following City Council’s rejection last week of Mayor Gina Ortiz Jones’ proposal to put the city’s $489 million arena contribution on the November ballot.

Public support for using city dollars to help fund a Spurs arena may be waning due to the city’s looming $158 million budget deficit and economic headwinds at the state and national level, University of Texas at San Antonio political scientist Jon Taylor said.

“I wouldn’t say it’s dead in the water,” Taylor said of enthusiasm for using public funds on the sports facility. “But it’s definitely in need of an infusion of support and enthusiasm. Maybe if the Spurs decided to pony up $220 million for infrastructure around what will be the new arena, that might make people happy and excited about what’s going on.”

​Under the non-binding term sheet with Spurs Sports & Entertainment that council approved last August, city voters must first approve a $220-plus million bond before the city’s contribution to the arena — paid for by a combination of sales and property taxes along with ground leases at and around Hemisfair — can be disbursed.

However, afterJones’ high-profile campaign to put the city’s contribution to a vote, some political observers, including former councilman-turned-political commentator Greg Brockhouse, speculate the Spurs may wind up paying for the necessary infrastructure improvements rather than risking the entire arena project with a public bond vote.

After all, the county wide vote last November, which raised the visitor tax to 2% with that revenue going toward paying Bexar County’s $311 million arena contribution, passed by just 10,000 votes — even after SS&E poured millions into supporting its campaign.

“The first vote last November barely passed, because their main argument was that visitors pay for it,” Brockhouse said. “Now fast forward, and [voters are] going to be told, ‘This is coming straight from you.’ That’s a very difficult sell. So, [the city is] going to try to defend it by burying it with a bunch of other stuff, and anybody that does that is politically in trouble.”

Indeed, UTSA’s Taylor said City Manager Erik Walsh will likely try to bundle the Hemisfair improvements as part of the broader Project Marvel sports-and-entertainment district and include other bond projects such as sidewalks, roads and parks across the city.

That way, the $220 million — which will be covered by general fund revenue, not a visitor tax — might be an easier pill for voters to swallow, the professor added.

However, Jones and District 4 Councilman Edward Mungia are advocating for the Project Marvel infrastructure improvements to be separate from the rest of the bond package.

“If I’m the Spurs, and I am looking at the bottom line, I would probably start looking at the bottom line and what could be paid for by themselves,” Brockhouse said. “If it goes to a public vote, then they’re going to have to run another $7 million [marketing and advertising] campaign to get it passed.”

Although Jones said she will continue to push for other ways to help fund the arena, including a possible revenue sharing agreement, her office didn’t respond to the Current’s request for comment for this story.

District 2 Councilman Jalen McKee-Rodriguez, in an Instagram comment, noted that the arena term sheet and the clause regarding the infrastructure bond could be amended after City Manager Erik Walsh reaches a final agreement with SS&E on behalf of the city.

“However, if there is infrastructure deemed necessary for the arena, the Spurs and city will have to come to a final agreement on who pays for it,” McKee-Rodriguez said.

​City staff is expected to brief council on the upcoming bond next month, city spokesman Brian Chasnoff told the Current.

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Michael Karlis is a multimedia journalist at the San Antonio Current, whose coverage in print and on social media focuses on local and state politics. He is a graduate of American University in Washington,...