SAN ANTONIO – Ideas that can change the shape of a city as large as San Antonio are rarely made public out of thin air. They typically begin with a discussion, or a series of discussions, before seeing the light of day.
In the several months since the City of San Antonio’s plans to reshape downtown became public knowledge, some questions — such as “What would be new?” and “What would be renewed?” — have been answered. Other questions — such as “How will it be paid for?” — remain an open question.
How the city’s private discussions first became public
In September 2024, through an open records request, KSAT 12 first reported on previously top-secret discussions held between the City of San Antonio and real estate and consulting firms, about “exploring the development of a sports and entertainment district.”
What KSAT also found in those 2023 records is the first mention of an estimated price tag for the potential sports and entertainment district.
Records show City of San Antonio Assistant City Manager Lori Houston emailed the real estate and consulting firms that the city was “in the feasibility phase for a $3-4 billion sports and entertainment district.”
Houston later emailed those companies a series of non-disclosure agreements (NDAs). In the NDAs, which KSAT also obtained in September 2024, the informal name of the plan was referenced for the first time: Project Marvel.
What makes up Project Marvel?
The district, which has been proposed to revamp the Hemisfair portion of downtown, would include:
- a new San Antonio Spurs arena
- expanding the Henry B. González Convention Center
- renovating the John H. Wood Jr. Federal Courthouse into an events venue
- upgrading to the 32-year-old Alamodome
- building a land bridge over Interstate 37 connecting the western part of the district to the Alamodome
- private development
Some initial hurdles needed to be cleared before other larger ones could be addressed down the line. One of those hurdles included the 163,000-square-foot U.S. General Services Administration building in the southeastern quadrant of Hemisfair.
Earlier this year, the GSA building was put up for sale.
Another hurdle was the Institute of Texan Cultures building, along César E. Chávez Boulevard near I-37, located in the heart of Hemisfair.
The 67-year-old building was owned by the University of Texas at San Antonio. In October 2024, the Conservation Society of San Antonio petitioned for the Texas Historical Commission to designate the ITC building as a State Antiquities Landmark (SAL). The designation meant that the building can’t be altered or demolished without the commission’s approval.
In November 2024, the city released its first conception of what Project Marvel could look like when it reaches the finish line.
In December 2024, UTSA received approval from the commission to tear down the ITC building. In the meantime, everything inside the former ITC structure was relocated to the Frost Tower.
Despite the Conservation Society of San Antonio’s initial objection and successive lawsuits to pause and prevent demolition, organization president Lewis Vetter admitted nothing more could have been done.
“Even if we were to succeed in our appeal, there is little left to save,” Vetter said in a May 16 statement to KSAT. “It is already gone.”
Demolition of the facility began in April 2025. In June 2025, KSAT shot drone video of the ongoing demolition at the ITC building.
Reaching an ‘understanding’
The Spurs currently call the Frost Bank Center, which opened in 2002, home. The team’s lease at the Bexar County-owned arena expires in 2032.
After San Antonio city council members OK’d the start of negotiations in February, the city, team and county entered into an agreement in April 2025 (described as a “memorandum of understanding”) that expressed their shared effort to bring Project Marvel to completion.
“This agreement to pursue a downtown sports and entertainment district that includes the Spurs represents a shared commitment to the future of our community,” San Antonio Mayor Ron Nirenberg said in a statement announcing the partnership.
“I am happy that we have worked together to finalize this MOU. We are looking forward to a potential November venue tax election to allow voters to voice their opinion on the new Spurs arena, which is the only component of Project Marvel involving Bexar County,” Bexar County Judge Peter Sakai said in the news release.
Spurs CEO RC Buford called it an “exciting project” to boost the economy and “position San Antonio for long-term success.”
“This process allows us to purposefully evaluate how an arena in the heart of a thriving entertainment district can drive new economic opportunities, local business growth and increased tourism revenue, all of which benefit our entire region,” Buford said in a statement, in part.
Paying for Project Marvel
The proposed Spurs arena, considered the center of the new district, would likely be the most expensive piece of the puzzle, but several other pieces could cost in the nine or 10-figure plateau, as well. Below are estimates from the City of San Antonio:
- New Spurs arena (between $1.2 billion and $1.5 billion)
- Henry B. González Convention Center expansion (between $700 million and $900 million)
- Adjacent hotel to the convention center (at least $750 million)
- John H. Wood Jr. Federal Courthouse’s renovation into an events venue (between $100 million and $150 million)
The four known projected price tags top out at approximately $3.3 billion, but how much Alamodome upgrades and a land bridge across Interstate 37 would cost is unclear.
How everything would be paid for has not been hammered out completely and is somewhat convoluted.
In May 2025, San Antonio City Council voted to create a new Project Financing Zone (PFZ), but it is unclear what role it will play in the overall funding of a Spurs arena at Hemisfair.
A PFZ was first created in December 2023 to help fund improvements to the Henry B. González Convention Center and the Alamodome.
The state comptroller’s office previously estimated a PFZ around the convention center could bring in nearly $2.5 billion over 30 years. City staff are also working on an updated projection, but they expect their more conservative forecast will likely be closer to around $2 billion.
The money wouldn’t be just for the arena. City Manager Erik Walsh previously said the convention center is the “first priority,” while the Alamodome improvements are “down the road.”
“I will tell you this: we are not going to pay for an arena using property tax — residential property tax," Nirenberg said during a June 3, 2025, Q&A session during KSAT’s 6 O’Clock News. “That’s not on the table. It wouldn’t be on the table. There are other ways to do this through, you know, visitor and business revenues that are generated from the business that would not be there unless the Spurs were to come downtown.”
The city’s larger vision for funding a new Spurs arena revolves around five possible streams of public and private dollars:
- PFZ: This would allow the city to capture a share of hotel-related, state tax dollars over 30 years from within three miles of a “Convention Center Complex.” The city can then spend the money on projects within that complex: the expansion of the Henry B. González Convention Center, improving the Alamodome and building a new Spurs arena.
- TIRZ: Similar to a PFZ, a “tax increment reinvestment zone (TIRZ)” sets aside new, city property tax revenue from development or higher values within a specific area. The money is then used to fund more projects within that same area. The proposed stadium sits in the city’s Hemisfair TIRZ, where the Spurs are looking to bring on a developer partner. City staff said they’ll be looking for guarantees from the developer on the revenue from their projects.
- Venue Tax: A Bexar County tax on hotel stays and car rentals that was used to fund the Spurs’ current home, the now-Frost Bank Center. Sakai, though, has said the county needs to use the tax to keep up its own facilities before helping the Spurs build a new home.
- Leases: These would include the Spurs leasing the new arena, but also private developers leasing nearby land for their projects.
- Spurs: Private money from the team, which Forbes values at $3.85 billion.
TIMELINE: What’s happened since Mayor Gina Ortiz Jones, new council took office
New city council sworn in
June 18: The final members of the 2025-2029 San Antonio City Council were sworn in following the June 7 runoff election. The council includes five new members: Mayor Gina Ortiz Jones, Councilman Edward Mungia (D4), Councilman Ric Galvan (D6), Councilwoman Ivalis Meza Gonzalez (D8) and Councilwoman Misty Spears (D9).
Mungia, who won his May 3 election outright, had his first council meetings two weeks earlier, at which the outgoing council was briefed on Project Marvel.
Spurs commit to spending $500M of arena cost
July 24: Ahead of the council’s July 25 meeting, Spurs Sports & Entertainment Chairman Peter J. Holt sent a letter to City Manager Erik Walsh, Jones, and the city council, offering to spend $500 million, plus cost overruns, on the arena’s construction.
The offer also included a guaranteed $500 million in adjacent development and $60 million in additional community incentives.
New council receives first briefing
July 25: The new council was briefed publicly for the first time on a potential Spurs arena deal, including the first public look at funding details. Council staff said the city could contribute between $350 million and $500 million, paid for with a combination of lease revenue and tax capture zones.
CSL report posted
July 30: An economic impact analysis on several portions of Project Marvel by CSL International was posted on the city’s website. The city-commissioned report looked at expanding the Henry B. González Convention Center, improving the Alamodome, turning the former John H. Wood Jr. federal courthouse into a concert venue and various mixed-use developments.
CSL did not directly study the possible effects of a new Spurs arena. Instead, it summarized the summary findings from a report by a different consultant hired by the Spurs called Stone Planning.
Experts who reviewed the CSL report called it “useless“ and said reports like these are often used to justify projects someone already wants to pursue.
D2 interim councilman begins
Aug. 1: Leo Castillo-Anguiano began his temporary term filling in as District 2 councilman for Jalen McKee-Rodriguez, while the latter is on parental leave. Castillo-Anguiano became the sixth new member of the 11-member city council.
Stone Planning report posted
Aug. 4-6: Shortly before a city council briefing, the economic impact analysis of a new arena was posted on the city’s website, performed by a consultant for Spurs Sports & Entertainment, Stone Planning. Though the report is dated January 2025, Jones later said council members had only received it on Aug. 5. An SS&E spokeswoman later told KSAT they had been sharing highlights of the report with city staff since May.
County puts arena funding on Nov. 4 ballot
Aug. 5: Bexar County Commissioners voted 4-1 to put the county’s share of funding for a new arena onto the Nov. 4 ballot. Voters would be asked to use the county venue tax — a combination of tax on short-term car rentals and hotel stays — to help pay up to $311 million or 25% of the arena’s cost, whichever is cheaper. Voters will also be asked about raising the hotel portion of the venue tax.
Nine-hour Spurs arena meeting
Aug. 6: Council members were briefed on economic impact analyses by CSL and Stone Planning as well as Able City, which conducted community engagement meetings in each district.
Jones and Councilwoman Teri Castillo (D5) highlighted the relationship between CSL and the Spurs. CSL is a subsidiary of Legends, whose majority owner, Sixth Street, is an investor in the Spurs.
City staff said there was an “ethical wall” between Sixth Street and CSL.
Though the mayor tries to push for a “strategic pause” on negotiations with the Spurs and the larger Project Marvel until a new, “independent” report is done, a majority of council members indicated they want negotiations to continue. City Manager Erik Walsh told Jones he will look into what another report would entail, but negotiations would continue.
Mayor news conference
Aug. 11: Jones reiterated her call for a “strategic pause” and points to another report CSL did to examine the potential impact of a new arena for the Philadelphia 76ers.
Funding vote tentatively set
Aug. 15: In an email to council members, Walsh said the city was close to finalizing a term sheet with the Spurs. He also said city staff planned to present it to council members on Thursday, Aug. 21, in a closed-door, executive session.
Based on council discussion, he said, council consideration could happen as early as Aug. 27.
Mayor and council move up dueling votes
Aug. 17: Jones asked Walsh to add a resolution stating that the city council will not move forward on a proposed term sheet with the Spurs until the city receives an independent economic impact study.
The resolution also requires each council member to host at least two in-person meetings with constituents to discuss the findings before moving forward.
A few hours later, Walsh told Jones and the council that five council members had asked to have a vote on the term sheet.
Jones later named Councilwoman Sukh Kaur (D1), Councilwoman Phyllis Viagran (D3) Councilman Edward Mungia (D4), Councilwoman Marina Alderete Gavito (D7) and Councilman Marc Whyte (D10) as the five members, which the council members or their staff have all since confirmed.
Draft term sheet made public; Mayor Jones holds news conference
Aug. 18: The draft of the non-binding term sheet was made public. The draft estimated the total cost to be approximately $1.3 billion and completion by the 2032-2033 NBA season.
The term sheet estimates at least $500 million contributed by the Spurs, up to $489 million by the City of San Antonio and up to $311 million from Bexar County.
The term sheet also details additional surrounding developments, community benefits, wages and leases. The term sheet can be read in full here.
Two items were added to the City Council’s Aug. 21 agenda, including:
- Jones’ resolution for an independent economic impact study in order to move forward on the proposed term sheet
- A resolution directing Walsh to move forward and complete negotiations with the Spurs on the terms for the new proposed arena
Jones also held a news conference where she discussed Project Marvel.
Spurs legal officer discusses arena deal ahead of council vote
Aug. 19: Bobby Perez, the chief legal officer and general counsel for Spurs Sports and Entertainment, described the arena’s funding as visitor-funded and not from San Antonio residents.
Regarding concerns raised by Jones about the project potentially exceeding $489 million, Perez said the term sheet caps the city’s visitor funds at $489 million and the county’s at $311 million.
The draft term sheet increases Spurs Sports and Entertainment’s community benefit package to $75 million and includes a lengthy lease agreement.
He said any additional funds needed to complete the arena would come from the Spurs.
“We’re willing to make that over $2 billion investment into this project,” Perez said.
Mayor hijacks Project Marvel support rally
Aug. 20: At a rally by business groups in favor of passing the term sheet, Jones walked through the crowd, accepted the microphone from one of the speakers and spoke for more than 10 minutes.
She repeated her calls for a pause and encouraged people to speak to their council members for support of her resolution.
“We want the same thing, Jones told the crowd. “I have said repeatedly, repeatedly, that I want the Spurs to stay here for 50, 100, 200 years. I want them here. We want them, here, right? We want them here. We also want to make sure we get a good deal.“
Asked what she’d say if the Spurs were to leave San Antonio, she countered that they have never threatened that.
“I’ve been known to crash a party or two,” Jones said when KSAT asked if she had been invited to the rally.
Council approves draft term sheet
Aug. 21: With a 7-4 vote, City Council first rejected a temporary push for a “strategic pause” on a Project Marvel deal.
Subsequently, the council approved a funding deal for a $1.3 billion Spurs arena via a 7-4 vote.
Project Marvel’s potential impact in the Lavaca neighborhood
What remains a concern is how the new district would directly impact residents in the Lavaca neighborhood, which is located south of Hemisfair. Some appear to have mixed feelings about it.
Aside from the new facilities and projected upgrades, the city said nearby infrastructure upgrades are also needed.
During a June 4, 2025, briefing, a potential $220 million to $250 million bond that residents could vote on would fund a variety of projects over the next five years:
- Traffic signal improvements
- Expansion or addition of highway ramps
- A 2,500-space parking garage at the Alamodome
- A pedestrian bridge across Interstate 37
- Upgrades to César E. Chávez Boulevard
- Enhancements to traffic flow at the I-37/César E. Chávez Boulevard intersection
The presentation included another 10 years of infrastructure work, but no price tag was attached.
A citywide vote on the proposed bond could happen as soon as November.
More recent Project Marvel coverage on KSAT: