San Antonio Moves to Grab Federal Land for Project Marvel

Land ownership around San Antonio’s most ambitious redevelopment project is starting to shift.

City officials formally moved toward acquiring 5.7 acres of federally-owned land in and around Hemisfair, clearing a path for future development tied to Project Marvel, the mixed-use district proposed to include a new San Antonio Spurs arena. The San Antonio Planning Commission voted unanimously this week to recommend the city purchase a federal office building at 727 East César E. Chávez Boulevard, along with two nearby parking lots at 610 and 611 Indianola Street, the San Antonio Business Journal reported.

The properties are owned by the federal government and were placed on the General Services Administration’s accelerated disposition list earlier this year, as part of the Trump administration’s push to reduce federal real estate holdings. Sale prices have not been disclosed, and the parcels are not currently assessed for taxable value.

A city spokesperson said the San Antonio City Council is expected to take up the acquisition in January, with closing anticipated 60 to 120 days after approval.

In a memo to the planning commission, city staff said federal employees would remain tenants in the 163,000-square-foot office building for up to five years while predevelopment planning moves forward. Any redevelopment would also be constrained by restrictive covenants overseen by the Texas Historical Commission.

City officials framed the acquisition as a necessary fix for longstanding connectivity issues at Hemisfair. The federal properties, they wrote, have functioned as a “significant buffer” that limits pedestrian and vehicle access to the park, contributing to weak investment and stalled redevelopment in the Tower Park area.

Bringing the land under city control would allow for clearer entry points, better wayfinding and development more consistent with the vision for a dense, mixed-use district surrounding the park.

The city’s interest in the site has been public for months. Earlier this year, City Manager Erik Walsh described the building as a priority acquisition after it landed on the federal disposition list. Former Hemisfair CEO Andres Andujar also flagged the property as critical to making Project Marvel succeed, noting that its eventual availability could draw strong interest from private developers.

Momentum for the broader plan picked up in November, when Bexar County voters approved $311 million in public funding for Hemisfair-area development.

Project Marvel’s broader scope along with a new San Antonio Spurs arena includes expansion of the Henry B. González Convention Center, a 1,000-room hotel, a 5,000-seat venue and about 50 acres of mixed-use development. The city already approved a Project Finance Zone, allowing it to collect up to $2 billion in hotel taxes over 30 years. The total cost of the arena exceeds $1.2 billion, but the Bexar County money approved on the ballot is only part of the total pot. The city of San Antonio is also expected to chip in $490 million, and the Spurs organization committed to $1 billion toward the district.

— Eric Weilbacher