San Antonio is advancing plans to acquire three federally owned parcels for $30 million as part of Project Marvel, a redevelopment effort centered around a new arena for the San Antonio Spurs and a mixed-use district downtown.
The properties include the federal office building at 727 East César E. Chávez Boulevard and two adjacent parking lots at 610 and 611 Indianola Street. Documents submitted to the San Antonio City Council indicate that these sites are considered essential for integrating Hemisfair more effectively into the surrounding area. The acquisition proposal is scheduled for a council vote on January 15, following support from the Planning Commission in December.
Under an agreement approved by the city council last August, the Spurs organization would provide funds for the purchase. The General Services Administration designated the office building as surplus last year, placing it on an accelerated disposition list. Once an offer is submitted, officials estimate that federal review could take between 90 and 120 days.
After acquisition, the federal government would lease back space in the office building for up to five years. Officials expect rental income during this period to cover operating costs. Future redevelopment may be affected by restrictions imposed by the Texas Historical Commission.
City staff described federal control of these parcels as a “significant buffer” that has limited access between Hemisfair and nearby streets, resulting in underinvestment in Tower Park. According to city documents, local ownership would allow reconfiguration of entrances, improved signage, and better integration with urban development planned for the area.
Project Marvel’s scope extends beyond a new arena; it also includes expansion of the Henry B. González Convention Center, construction of a 1,000-room hotel, creation of a 5,000-seat venue, and about 50 acres dedicated to mixed-use development. The city has already established a Project Finance Zone expected to generate up to $2 billion in hotel taxes over three decades. Additional funding commitments include $490 million from the city and $1 billion from the Spurs organization.
Bexar County voters recently approved $311 million in public funding toward Hemisfair-area development in November.
City Manager Erik Walsh previously identified acquiring these properties as a priority for supporting Project Marvel’s goals.
“Federal control of these parcels has long acted as a ‘significant buffer’ between Hemisfair and surrounding streets,” officials said in their memo to the Planning Commission.
