The city is closing in on plans to acquire the property formerly occupied by the Institute of Texan Cultures (ITC) for the planned Spurs arena.
That announcement, and the pending acquisition of one of two federal buildings at Hemisfair, were part of a delayed progress update Wednesday on the $4 billion proposed downtown sports and entertainment mecca. The update came following a fiery discussion in May and a rush to vote last fall.
The latest council discussion was more measured with city staff laying out various development milestones and council advocating for affordable housing, small business involvement and mobility and accessibility issues.
Council members also said they're eager to see the planned online dashboard, under development by the executive program manager Accenture. The public dashboard is expected in early 2027 and will track the various studies, construction and costs on the project known as Project Marvel.
Last August, the council voted 7-4 to approve the framework for a $489 million city contribution to the arena anchoring the sweeping sports and entertainment district, and Bexar County voters followed it up by approving another $311 million on the Nov. 4 ballot.
But the dazzling vision for the district has continued to shift since it's gone from concept in November 2024 to actual implementation this year.
Gone are plans for a new convention center hotel and hospitality school in place of a water chilling plant, and a land bridge connecting the East Side to downtown, while other pieces of the plan, like the former courthouse-turned-concert venue, have been put on pause.
Moving forward at full speed are proposals for a new Spurs arena in place of the demolished ITC and an expanded Henry B. González Convention Center.
City staff said at the recent B Session that the appraisal process is underway on the ITC property. The city estimated the purchase price to come in around $60 million, a cost that will be funded by the Midtown Tax Increment Reinvestment Fund.
While that property acquisition should be complete by the end of the year, said City Manager Erik Walsh, the city expects to close even sooner — sometime in July, he said — on the Union Square building at 727 E. César E. Chávez Blvd. in Hemisfair.
The office building comes with a price-tag of $30 million and closing costs of $120,000. The Spurs organization is funding the cost, according to a non-binding term sheet approved by council in August.
In the meantime, the city is conducting assessments on the Alamodome and convention center and hiring consultants to study things like the cost of upgraded infrastructure for the district and designing transportation and parking to support new development.
The next major update and opportunity for council decisions will come in September, Walsh said.
But several council members said they were concerned about that timing due to schedules for both the 2027 bond and city budget processes, when the deficit the city is facing and the potential for a tax rate increase will be in focus.
"I'm just thinking, September, October, you better buckle up, there's going to be a lot of conversations happening at that time," said Councilwoman Sukh Kaur (D1). "But looking forward to seeing how all of that comes alive because, as we saw in the last few weeks, downtown was lit up, and it was wonderful. And I want it to last."
A plan for recommended infrastructure improvements and future mobility needs — vehicle traffic, pedestrian activity, public transit and parking — is expected to be presented in September along with assessments on the existing facilities.
On Thursday, City Council will consider a staff recommendation to hire the project management company Walker Consultants to conduct a mobility study, a contract worth $500,000. Next week, on June 25 and 27, the city will hold community workshops on mobility "visioning and needs assessment."
The city already hired a consultant, MuniCap, to study and provide projected cost of service impacts, perform revenue forecasting, and identify new revenue opportunities for the district.
The findings of those studies will be used to negotiate financing and a stack of other agreements with the Spurs, though talks have not yet begun.
"I think that's an important support piece for us to have in order to ensure that any potential revenue opportunities in the district itself we're able to capture and any costs associated with events or games or concerts, or whatever, are borne by those events, just like the Alamodome," Walsh said. "We need that information."
Shanon Shea Miller, the city's chief downtown officer, said negotiations on the definitive documents will be completed by the end of December.
The team's owners have committed at least $500 million for arena construction, and to bring in development around the arena with $1.4 billion in taxable value.
That would help the city make the most of a Project Finance Zone, established in 2023, which allows it to collect the growth in state taxes from hotels and businesses within a three-mile radius for the sake of infrastructure improvements.
The term sheet with the Spurs calls for the city to contribute $489 million for the arena. Bexar County will give $311 million, and the Spurs will pay for the remaining arena costs, including any expenses beyond the initial $1.3 billion estimate.
The city will own the arena and the Spurs will have the exclusive naming and advertising rights. The agreement also includes a non-relocation clause, meaning the Spurs can't move to another city for 30 years.
Councilman Jalen McKee-Rodriguez (D2) said he was dissatisfied with Wednesday's update because it was not very "enlightening" in terms of understanding the costs and how funding would be secured for the project.
When negotiations do get going, McKee-Rodriguez suggested meetings with city staff should be open to council members and, as much as possible, with the public.
Jones agreed. "I think there is a greater appetite in the public not to be briefed on what was discussed, but to either see in real time what is being discussed, or certainly maybe understand before what is being discussed," she said.
The downtown working group, which consists of five council members and leaders from Centro, the San Antonio Housing Trust and others, could provide that opportunity, she suggested.
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