The Spurs, "worried about negative reaction to a sales
tax increase," have voted in favor of the county's Freeman
Coliseum site for a new arena over the city's plan for a
downtown facility, according to Cardwell & Huddleston in a
front-page report in the SAN ANTONIO EXPRESS-NEWS. The city
proposed a 1/4-cent sales tax for ten years to construct the
new arena, but voters will now decide on an increase in the
hotel-motel tax and auto rental tax on November 2. Spurs
Chair Peter Holt: "We felt it would be more difficult to
sell an arena built with an increased sales tax." Holt said
the main factor in the team's decision was a poll last week
which showed "strong disapproval by likely voters of a sales
tax increase" (see THE DAILY, 8/9). Cardwell & Huddleston
write that the news "disappointed city officials, who felt
they had a 'handshake' deal with the Spurs for the past 10
days." While details are still uncertain, Holt said, "There
will be a substantial contribution up front by the Spurs"
toward the arena project. If voters approve the county
plan, the team hopes to open the arena in October 2002 on
land just outside the city (EXPRESS-NEWS, 8/12). Despite
"concerns that a Spurs arena at another site will draw
events and funds away from the Alamodome," Mayor Howard Peak
said that he "wouldn't oppose a new facility" near Freeman
Coliseum. The city will lose about $1.5M annually in lease
revenue if the Spurs leave (EXPRESS-NEWS, 8/12).
THE ROAD LESS TRAVELED: Holt said the team "looked at
business considerations and political considerations" in
choosing the county plan. Writing on the team's decision,
EXPRESS-NEWS columnist Carlos Guerra notes that Spurs
ownership knew, "Politically, a county deal ... offers the
path of least resistance" (SAN ANTONIO EXPRESS-NEWS, 8/12).
