In a nutshell
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 fair market value, resulting in an appraised value of $29.95 million for all three properties. According to city documents, the proposed offer of $30 million plus closing costs of up to $120,000 was made after discussions with the General Services Administration, or GSA.
As part of the term sheet for the new downtown NBA arena, the Spurs agreed to contribute $30 million towards the city’s acquisition of the GSA properties. According to city documents, these properties are a fundamental part of the financing plan for the proposed district and will be used for mixed-use development.
Though the acquisition will not have a fiscal impact on the city, and office space leases will cover the initial operational costs after the purchase, the city will be financially obligated for any operating cost shortfalls prior to the redevelopment. The shortfalls will be covered by the city’s hotel occupancy tax capital and redemption fund.
The background
Plans for a Sports and Entertainment District were first unveiled in November 2024. The proposed district would include the expansion of the Henry B. Gonzalez Convention Center, a new convention center hotel, a new Spurs arena, mixed-use development, a land bridge over I-37 connecting the district to the Alamodome and the East Side, renovations and improvements to the Alamodome and the conversion of the John Woods Courthouse into an entertainment venue.
The city entered into a non-binding term sheet with the San Antonio Spurs on Aug. 21, 2025. Part of the terms include a $500 million investment by the Spurs, plus any cost overruns, as well as a $1.4 billion investment in the surrounding district.
Stay tuned
The federal government is estimated to make a decision on the city’s offer within 90-120 days.
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‘ The preceding article may include information circulated by third parties ’
‘ Some details of this article were extracted from the following source communityimpact.com ’
