San Antonio, TX, August 28, 2025
News Summary
The San Antonio City Council has approved a financial framework for a $1.3 billion arena for the Spurs as part of Project Marvel. The framework includes contributions from the city and county totaling $800 million, while the Spurs commit $500,000 plus cost overruns. The plan is contingent on voter approval for a venue tax election set for November 4. The new arena will be located on a 13.59-acre parcel near Hemisfair and is expected to have a capacity of 17,000 to 18,500 seats.
San Antonio — The San Antonio City Council approved the financial framework for a $1.3 billion arena for the Spurs as part of Project Marvel, a decision that moves the project forward but remains contingent on voter approval of a venue tax election scheduled for November 4. The framework includes a city contribution capped at $489 million, a county pledge of $311 million, and a Spurs commitment of $500,000 plus cost overruns. The Council also received an exclusive option from the University of Texas Board of Regents to acquire a 13.59-acre parcel for the new arena.
Key details and immediate implications
The selected parcel sits along East César E. Chávez Boulevard, adjacent to Hemisfair and across the highway from the Alamodome, and currently contains the Texas Pavilion structure, which is being demolished. The land has been associated with the University of Texas–San Antonio’s former operation of the Institute of Texan Cultures, which closed in 2024. The institute’s collection is planned to reopen in a temporary space at Frost Bank Tower in early 2026.
The Spurs estimate a development and build timeline of 57 months from the start of construction. The proposed arena would have an expected seating capacity between 17,000 and 18,500. The approved financial framework will take effect only if Bexar County voters approve the venue tax measure on November 4.
Funding breakdown and financial context
Under the Council-approved framework, the city’s maximum contribution is $489 million and Bexar County’s contribution is $311 million. The Spurs’ direct contribution in the agreement is minimal in relation to the total project cost, listed at $500,000 with additional responsibility for any cost overruns. The full project price is stated as $1.3 billion. The framework does not fully specify all sources covering the remainder of the project cost beyond the city, county and the Spurs’ limited cash commitment.
Community benefits and social priorities
A community benefits agreement is part of the project and allocates $75 million to support local initiatives. These funds are designated to back youth programs, education efforts, and workforce training among other community priorities. Supporters point to this package as a direct investment in local needs, while critics question whether the scale and design of benefits will adequately address persistent economic challenges in San Antonio.
Public concerns, preservation and economic debate
Preservation advocates, including the Conservation Society of San Antonio, have opposed demolition of the Texas Pavilion and sought to preserve the structure for its historical significance. Community reaction has been mixed: some view Project Marvel as a significant public investment in downtown infrastructure and sports amenities, while others describe the deal as rushed or lacking sufficient transparency and scrutiny.
Economic concerns have been highlighted by critics who argue that large new arenas often fail to produce the long-term economic growth they promise and may create mostly low-wage jobs. Observers note that San Antonio’s persistently high poverty rate is a central context for evaluating the project’s potential impacts and that measurable outcomes should be tracked if public funds are expended.
Political process and next steps
The project advanced despite a mayoral proposal for a “strategic pause” to further assess economic impacts; that pause did not succeed. The agreement’s implementation depends on voter approval of the county venue tax election on November 4. If the vote is successful, the project would proceed toward acquisition, demolition and the multi-year development phase currently estimated at 57 months.
Background and site history
The land option granted by the University of Texas Board of Regents covers 13.59 acres occupied by the Texas Pavilion, a structure connected historically to the Institute of Texan Cultures. The institute closed operations in 2024, and its collection will move to a temporary location at Frost Bank Tower in early 2026. The parcel is centrally located in downtown San Antonio, adjacent to Hemisfair and within visual proximity to the Alamodome, making it a prominent redevelopment site.
| Key Feature | Detail |
|---|---|
| Project name | Project Marvel — Spurs arena |
| Estimated cost | $1.3 billion |
| City contribution | Up to $489 million |
| Bexar County contribution | $311 million (contingent on voter approval) |
| Spurs contribution | $500,000 plus cost overruns |
| Land | 13.59-acre parcel along East César E. Chávez Boulevard (Texas Pavilion) |
| Seating capacity (expected) | 17,000–18,500 |
| Estimated development time | 57 months |
| Community benefits | $75 million for youth, education, workforce training and other initiatives |
Timeline
| Date / Time | Event | Status / Source |
|---|---|---|
| Date not specified | San Antonio City Council approves financial framework for arena | Council action — framework adopted (contingent) |
| 2024 | Institute of Texan Cultures closes | Institution closure; collection moved from site |
| Early 2026 | Institute of Texan Cultures collection scheduled to reopen in temporary space at Frost Bank Tower | Planned reopening (temporary) |
| November 4 | Bexar County venue tax election to determine funding approval | Voter decision required for funding to proceed |
| TBD (post-approval) | Estimated 57-month development and construction timeline | Projected duration from start of construction |
Funding visualization
Breakdown of listed contributions relative to the $1.3 billion project total. Remaining funds are not fully specified in the public framework.
FAQ
What did the City Council approve?
The City Council approved the financial framework for a $1.3 billion Spurs arena as part of Project Marvel, including an exclusive option to buy a 13.59-acre parcel for the project. The framework is contingent on voter approval of a venue tax election on November 4.
How will the project be funded?
The approved framework calls for the City to contribute up to $489 million, Bexar County to contribute $311 million (subject to voter approval), and the Spurs to contribute $500,000 plus any cost overruns. The framework does not fully specify all sources covering the remainder of the project cost.
Where will the arena be located?
The arena site is a 13.59-acre parcel along East César E. Chávez Boulevard, adjacent to Hemisfair and across the highway from the Alamodome. The site currently includes the Texas Pavilion structure, which is being demolished.
What is the timeline for building the arena?
The Spurs estimate approximately 57 months to develop and build the new arena once construction begins. The project will proceed only if the venue tax election passes.
What capacity will the arena have?
The proposed arena is expected to have a seating capacity between 17,000 and 18,500.
What happened to the Institute of Texan Cultures?
The Institute of Texan Cultures closed in 2024. Its collection is scheduled to reopen in a temporary space at Frost Bank Tower in early 2026.
Are there community benefits included?
Yes. The community benefits agreement includes $75 million designated for youth programs, education, workforce training and other initiatives.
Are there concerns about the project?
Concerns raised include preservation of the Texas Pavilion, questions about economic impacts, and skepticism that new arenas deliver the promised long-term economic growth. Critics also note the need to address San Antonio’s persistent high poverty rate comprehensively.
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Additional Resources
- KENS5: Spurs Arena News
- Wikipedia: San Antonio
- Express News: Spurs Arena Investment
- Google Search: Spurs Arena Project Marvel
- SA Current: Anti-Project Marvel Protest
- Google Scholar: Spurs Arena Economic Impact
- KSAT: Spurs Arena Residents Concerns
- Encyclopedia Britannica: San Antonio Hemisfair
- Spectrum Local News: Mayor’s Project Marvel Pause
- Google News: Spurs Arena Controversy
Author: STAFF HERE SAN ANTONIO WRITER
The SAN ANTONIO STAFF WRITER represents the experienced team at HERESanAntonio.com, your go-to source for actionable local news and information in San Antonio, Bexar County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as Fiesta San Antonio, San Antonio Stock Show & Rodeo, and Dia de los Muertos. Our coverage extends to key organizations like the Greater San Antonio Chamber of Commerce and United Way of San Antonio and Bexar County, plus leading businesses in retail, insurance, and energy that power the local economy such as H-E-B, USAA, and Valero Energy. As part of the broader HERE network, including HEREAustinTX.com, HERECollegeStation.com, HEREDallas.com, and HEREHouston.com, we provide comprehensive, credible insights into Texas's dynamic landscape.
