Key Takeaways
- The San Antonio City Council has authorized a $30 million private acquisition and escrow agreement to purchase three properties from the federal government.
- The properties include the final federal office building within Hemisfair Park and two parking lots across Cesar Chavez Boulevard.
- The acquisition is part of the plan to develop a Sports and Entertainment District in downtown San Antonio.
- The San Antonio Spurs have agreed to contribute $30 million towards the city’s acquisition of the properties.
- The city will be financially obligated for any operating cost shortfalls prior to the redevelopment, which will be covered by the hotel occupancy tax capital and redemption fund.
Introduction to the Sports and Entertainment District
The San Antonio City Council has taken a significant step towards making the Sports and Entertainment District a reality. On January 15, the council voted unanimously to authorize the city manager to execute a $30 million private acquisition and escrow agreement between the city, the San Antonio Spurs Holdings, LLC, and Chicago Title, who will act as the escrow agent for the federal government. This agreement marks a major milestone in the development of the district, which is expected to transform the downtown area into a vibrant hub of activity.
The Acquisition Process
According to city documents, the city is making an offer to purchase three properties owned by the federal government, including the final federal office building within Hemisfair Park and two parking lots across Cesar Chavez Boulevard. Prior to authorizing the acquisition, the city contracted Valbridge to appraise the properties to determine their fair market value, which was determined to be $29.95 million for all three properties. The proposed offer of $30 million, plus closing costs of up to $120,000, was made after discussions with the General Services Administration (GSA). The acquisition is a crucial part of the financing plan for the proposed district, and the properties will be used for mixed-use development.
The Role of the San Antonio Spurs
As part of the term sheet for the new downtown NBA arena, the San Antonio Spurs agreed to contribute $30 million towards the city’s acquisition of the GSA properties. This investment demonstrates the team’s commitment to the development of the Sports and Entertainment District and its potential to transform the downtown area. The Spurs have also agreed to invest $500 million in the development of the district, plus any cost overruns, as part of the non-binding term sheet signed with the city in August 2025.
Background and Context
Plans for a Sports and Entertainment District were first unveiled in November 2024, and the proposed district would include a range of amenities, such as the expansion of the Henry B. Gonzalez Convention Center, a new convention center hotel, a new Spurs arena, mixed-use development, and a land bridge over I-37 connecting the district to the Alamodome and the East Side. The city’s investment in the district is expected to be significant, with a total estimated cost of $1.4 billion. The development of the district is expected to have a major impact on the local economy and will provide a range of benefits for residents and visitors alike.
Next Steps
The federal government is estimated to make a decision on the city’s offer within 90-120 days. If the offer is accepted, the city will be able to move forward with the acquisition of the properties and the development of the Sports and Entertainment District. The city will be financially obligated for any operating cost shortfalls prior to the redevelopment, which will be covered by the hotel occupancy tax capital and redemption fund. The development of the district is expected to be a complex and multi-phase process, but the city is committed to making it a reality and transforming the downtown area into a vibrant and thriving hub of activity.
Conclusion
The authorization of the $30 million private acquisition and escrow agreement marks a significant milestone in the development of the Sports and Entertainment District. The city’s investment in the district is expected to have a major impact on the local economy and will provide a range of benefits for residents and visitors alike. With the San Antonio Spurs committed to investing $500 million in the development of the district, plus any cost overruns, the project is poised to move forward and become a reality. The city’s commitment to the development of the district demonstrates its vision for a vibrant and thriving downtown area, and the potential for the district to become a major hub of activity in the city.
