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SA Venue Tax - will kill chances to land pro team
Judge Wolff is pushing to use up all the venue tax funds on civic improvements. Good idea or bad?? Comments? It does appear to tie up these funds for the next 10-15 years and kill or seriously hurt SA's chances of landing another pro team, as those funds would be needed to build a stadium/upgrade the Alamodome. Unless they can find another revenue stream.
http://sanantonio.bizjournals.com/sanantonio/stories/2007/12/24/story4.html?b=1198472400^1567707
Venue-tax plans may hinder city's odds of snaring pro sports team
In January, Bexar County officials will begin to firm up a plan to present to voters later next year that could result in a lengthy extension of the venue tax to help fund an array of community projects, possibly including River Walk improvements and a new performing arts center.
But some critics warn that such a move would lock up for a decade or more a key funding mechanism that could be used to lure an NFL or Major League Baseball franchise to the Alamo City.
In 1997, state lawmakers created the venue tax as a mechanism to help Texas communities fund the construction of or improvement of certain projects, including arenas and stadiums. In 1999, Bexar County used that venue tax to construct AT&T Center, home of the defending NBA champion San Antonio Spurs.
It is a mechanism dependent on a combination of hotel occupancy and rental car taxes. In 2006, when local leaders were attempting to woo the Florida Marlins to San Antonio with the lure of a new ballpark, the venue tax was discussed as a potential funding source for such a stadium.
Bexar County Judge Nelson Wolff, disappointed by the Marlins' decision to pass on San Antonio's offer, says he believes the Alamo City now has other priorities that need to take precedence over professional baseball or football.
"We have some other needs," he says.
A number of business and civic leaders agree.
Say good-bye
Some hospitality industry leaders believe that a 20-year extension of the venue tax could generate as much as $400 million or more in new revenues. They want $125 million of that to be earmarked for improvements to the San Antonio River.
Dozens of other groups have their own project proposal wish lists.
Wolff -- who made his run at the Marlins at roughly the same time that San Antonio Mayor Phil Hardberger was trying to convince the New Orleans Saints to turn a temporary visit into a permanent relocation -- says it's time to focus on some of those other projects.
"We've had some flirtations," Wolff says about the NFL and Major League Baseball. "I just don't trust those people anymore."
Former North San Antonio Chamber of Commerce Chairman T.J. Connolly, who previously spent some five years working for Saints owner Tom Benson, says this is not the time to close the door on the NFL especially.
"We may be the only city in America who truly auditioned for an NFL team with real games," Connolly says. "We showed the NFL our ability to not only fill seats but to generate corporate sponsor dollars. We demonstrated to the NFL that we are ready for prime time."
Connolly says he will work to oppose any extension of the venue tax if county leaders do not take into account San Antonio's future pro sports facility needs.
"We're at a crossroads right now," Connolly says. "I'm not sure San Antonians are ready to say good-bye to any new pro sports team for the next 20 years."
Tapped out?
San Antonio has a facility capable of accommodating an NFL team for a limited period of time -- perhaps longer with extensive upgrades. In 2005, the Saints played three regular season games in the 65,000-seat stadium.
But the Alamodome could be well over a quarter-century old by the time an extended venue tax expires.
According to Michael Sawaya, director of convention, sports and entertainment facilities for the city, there are no plans at present to dedicate any revenues from an extended venue tax toward Alamodome improvements.
Former Alamodome Director Mike Abington says San Antonio leaders need to extend the viability of the city's existing sports venues and keep their options open concerning any new facility needs.
"I'm not sure about the wisdom of maxing out that (venue tax) funding source for the next couple of decades," Abington says. "I think it would be wise to at least set aside a big portion of that money for the future."
Abington adds, "I'd hate to see us have to tell the NFL in a few years, 'Sorry. We used all that money on something else.'"
Sawaya says the Alamodome is still a viable building attractive to a number of high-profile users. But he understands that, like all stadiums, it has a shelf life. Sawaya says the Alamodome is still a viable building attractive to a number of high-profile users. But he understands that, like all stadiums, it has a shelf life.
When will that shelf life expire for the Alamodome?
"When people stop wanting to use it," Sawaya says.
Mixed emotions
Wolff believes there are still some stadium funding options available should a team take a serious enough interest in relocating to San Antonio.
One possibility, he says, is the same kind of tax increment financing plan that the Spurs proposed for a Northeast Side arena.
That plan stalled, however, and it took an offer of land, a venue tax plan from the county and voter approval to get the Spurs a new arena.
Abington says local leaders need to protect the viability of the Spurs, AT&T Center and the Alamodome. And he says they need to keep the doors open for any team that might look to relocate here.
Connolly says there is too much at stake for San Antonio to accept indefinitely its status as a one-horse sports town.
But while Wolff says he has not given up entirely on the notion of San Antonio expanding its pro sports presence beyond a single NBA franchise, he doesn't foresee that happening anytime soon.
Says Wolff, "I'm convinced we are 10 to 15 years away from (getting another) team. I've got some mixed emotions about all of this. But right now we have to address some other things."
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