San Antonio Nears $30M Land Purchase for Spurs

San Antonio is moving closer to securing a key piece of its Project Marvel vision, putting a $30 million price tag on a trio of federally-owned parcels that city leaders see as critical to reshaping downtown around a new Spurs arena and mixed-use district.

City officials are seeking approval to acquire three properties in and around Hemisfair, including a federal office building at 727 East César E. Chávez Boulevard and two adjacent parking lots at 610 and 611 Indianola Street, according to documents submitted to San Antonio City Council and first reported by the San Antonio Business Journal. The Spurs would front the purchase price under a funding framework the council approved last August as part of its broader partnership with the NBA franchise.

The office building, controlled by the General Services Administration, was deemed surplus and placed on the GSA’s accelerated disposition list last year. Council is set to vote on the acquisition Jan. 15, following a recommendation from the Planning Commission in December. City officials estimate the federal review process would take 90 to 120 days once an offer is submitted.

While the city would own the properties, the federal government is expected to remain in the office building for up to five years under a leaseback arrangement. Officials say the rental income would cover operating costs during that period. Any future redevelopment of the building would also be constrained by restrictive covenants from the Texas Historical Commission, adding a layer of complexity to long-term plans, according to the publication.

Still, city staff have framed the acquisition as foundational to Project Marvel’s ambitions. In a memo to the Planning Commission, officials said federal control of the parcels has long acted as a “significant buffer” between Hemisfair and surrounding streets, limiting pedestrian and vehicular access and contributing to underinvestment in nearby Tower Park.

Bringing the land under local control would allow the city to rework entrances, improve wayfinding and better integrate Hemisfair into the surrounding urban fabric, while opening the door to uses more consistent with a dense, mixed-use entertainment district anchored by a new arena, according to city documents.

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 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 city is also expected to chip in $490 million, and the Spurs organization committed to $1 billion toward the district.

The city’s interest in the site has been public for months. Last year, City Manager Erik Walsh described the building as a priority acquisition, and former Hemisfair CEO Andres Andujar also flagged the property as critical to making Project Marvel succeed.

— Eric Weilbacher