City leaders say they could pay for the deal through bonds and higher hotel taxes, but that doesn\u2019t sit well with some people at a time where federal spending cuts will devastate critical social safety net services<\/a>, such as food assistance and the public hospital system, serving San Jose residents.<\/p>\n Jean Cohen, executive officer of the South Bay Labor Council, supports keeping the Sharks in town. But she said San Jose\u2019s taxpayer general fund<\/a> is exposed \u2014 and a financing plan for arena upgrades and new facilities should come before the agreement is approved, not after.<\/p>\n \u201cBy waiting to develop such a plan, at a time when the City projects deficits, we fear the City may be unnecessarily leaving the General Fund and essential services vulnerable,\u201d Cohen wrote in an Aug. 22 letter to councilmembers.<\/p>\n San Jose faces a $35.6 million shortfall<\/a> this fiscal year, which is expected to increase to $52.9 million in 2026-27.<\/p>\n Mayor Matt Mahan \u2014 who has championed the proposal while casting doubt on a sales tax measure<\/a> to support the county\u2019s public hospital system<\/a> \u2014 declined to comment.<\/p>\n Representatives for the Sharks declined to comment.<\/p>\n Cohen said she wants guarantees that residents will be able to weigh in on how the deal can put resources into the community.<\/p>\n \u201cI\u2019m not sure that the outreach component was as robust as it could have been for this part of the development of this deal,\u201d Cohen told San Jos\u00e9 Spotlight. \u201cWe\u2019re investing a lot of general fund taxpayer dollar resources into this agreement. We want some guarantees about what the process looks like and who benefits from the investment.\u201d<\/p>\n City leaders and team officials argue SAP Center is the NHL\u2019s oldest active arena without major renovations \u2014 and no longer meets NHL requirements. Officials have cited a list of infrastructure issues they say hinders the recruitment of new players, including inconvenient layouts, aging systems and outdated back-of-house areas.<\/p>\n Officials estimate in the next five years Sharks Sports & Entertainment will generate more than $1.25 billion in economic impact and support 25,000 hotel room nights annually. \u201cWe are excited about this opportunity and are looking forward to a continued partnership with the City of San Jose for many years to come,\u201d Becher said.<\/p>\n The San Jose City Council meets Tuesday<\/a> at 1:30 p.m.<\/p>\n This story will be updated.<\/p>\n![\"Keep](\"https:\/\/www.newsbeep.com\/au\/wp-content\/uploads\/2025\/08\/interactive-184632509590.png\")
<\/a>In a news release announcing the deal, Sharks Sports & Entertainment President Jonathan Becher said team owner Hasso Plattner has invested more than $100 million into the city-owned venue over the last decade.<\/p>\n