This story has been updated.

City Manager Erik Walsh told the mayor and council on Friday evening that he’s nearing a deal with the San Antonio Spurs on the framework for a new arena, and that the council could be asked to vote on it before the end of the month.

Walsh said city staff was “close to finalizing a term sheet” and that the council should see the details at Thursday’s regular meeting.

“The negotiations have gone well and been productive,” Walsh wrote in an email sent to council at 5:53 p.m., which was shared with the Report.

His optimism comes as Mayor Gina Ortiz Jones is still seeking a “strategic pause” on the project, however, and will ask council members to support her in that effort at Thursday’s meeting. 

“I’m going to ask my colleagues on Thursday to vote on how we proceed,” Jones said in an interview Sunday night. “ … Obviously there’s some forces that would like to move faster, I continue to say we need this due diligence.” 

Jones is seeking a commitment that the city won’t consider a term sheet on the arena until after an “independent” economic impact study is completed by a firm different from the one the city already paid — which has business ties to the Spurs. 

She also wants each council member to hold two in-person public meetings in their districts about the project before voting on a term sheet.

“I think it’s really important that we hear from the people on this,” she said. “I’ve heard too often that folks feel like this is going really fast, and they have not heard enough from us, the City Council and even the city staff on some of the details.”

The resolution was added to Thursday’s meeting agenda late Sunday evening.

Several hours later — after the council learned of Jones’ plans — another item was added to Thursday’s agenda, authorizing Walsh to “complete negotiations” and “execute a non-binding term sheet” with the Spurs. 

Walsh said in an 11:07 p.m. Sunday email to the mayor and council that five council members reached out to him requesting he add that item. He said the term sheet is “substantially complete,” and that a summary of the city’s agreement with the Spurs would be distributed to council offices Monday morning.

Councilman Marc Whyte (D10), who is among those pushing the city to move forward with the term sheet, said the council wasn’t aware of the mayor’s plans until they received an email from her chief of staff late Sunday evening.

“The majority of the council, I would say, is in disagreement with her,” Whyte said Monday morning. “And so there was pushback.”

Council takes sides

The last time the arena deal was discussed publicly, council members were divided on how to proceed. 

Generally speaking, the mayor and other progressives on the council — including Jalen McKee-Rodriguez (D2), Teri Castillo (D5) and Ric Galvan (D6) — wanted to see more information about the project’s financing before pushing ahead with a term sheet. 

“I think there will be enough support for [a pause],” Jones said Sunday. “I think the vast majority of my colleagues see the need for an independent economic impact study and would welcome the opportunity to have an informed discussion with their constituents.”

Meanwhile another vocal group — including Whyte, Councilwoman Phyllis Viagran (D3) and Marina Alderete Gavito (D7) — said they felt comfortable with the information they’d received and wanted to proceed toward a non-binding term sheet as planned.

“I’m here to tell you that I think that Gina’s resolution will not pass, and then the term sheet will be voted on,” Whyte said.

Increased commitments from the Spurs 

The latest City Council agenda materials offer some additional details about what the city would contribute to the overall $1.3- to $1.5-billion arena — and specifics about the risks the Spurs would undertake. 

According to the memo on the term sheet added to Thursday’s agenda, the city would commit to paying $489 million, or 38% of the total arena costs, whichever is lower. That is on the higher side of the $350 to $500 million range city officials presented to the council in July, but includes a hard cap on how much the city will contribute.

The Spurs initially offered to pitch in at least $500 million to construction. According to the memo, the Spurs would commit to all other costs of construction, including cost overruns and construction expenses if the arena price exceeds $1.3 billion.  

The Spurs would also commit to paying $75 million toward community benefits over a 30-year period — up from the $60 million offered earlier in July.

Peter J. Holt, chairman and managing partner of the San Antonio Spurs, has also guaranteed another $500 million through adjacent development — for a total investment of more than $1 billion.

Jones has said she expected Walsh to provide the council with additional details on the project at the Aug. 21 meeting, such as more information on the Spurs’ plans for “guaranteed revenues.”