In an update on Project Marvel, city staff laid out plans Wednesday to expand the convention center and improve the Alamodome, and how to pay for it.
As part of wide-ranging sports and entertainment district plans, the city’s proposing to spend $850 million on the Henry B. Gonzáles Convention Center, and make $125 million in upgrades to the Alamodome.
Those projects are necessary to remain competitive with other cities in attracting the kind of convention and meeting business and events that drive San Antonio’s annual $23 billion tourism and hospitality economy.
City staff also outlined ongoing studies into the transportation and parking needs for the district and what the costs are expected but also the potential for revenue that could be generated from the entire project when it’s completed.
Not part of the update at council this time around: Plans for the $1.3 billion facility driving the expansive downtown sports and entertainment center.
Though a planned NBA basketball arena anchors the district, the city’s still in negotiations with the Spurs after signing a non-binding agreement in 2025.
“I said [in January] that we would be targeting to get it done by the end of the calendar year,” said the city’s Chief of Financial and Administrative Services Ben Gorzell. “My assumption when I said that is we would have started a little bit earlier. We have started here more recently.”
In the meantime, the city’s looking to move forward and could go out for exploratory bids on the convention center and Alamodome projects early next year.
The convention center and Alamodome improvements will be paid for through the Project Finance Zone (PFZ), the 3-mile tax zone designated around major civic venues where the city can capture the growth, or increment, in state hotel-associated tax revenue.
The city plans to combine the PFZ revenue with hotel and occupancy tax (HOT) funds for the projects.
The PFZ is expected to grow over 30 years to $1.9 billion, Gorzell said.
San Antonio’s nearly $500 million contribution to the arena project will be paid with funds from the Spurs arena lease, the Hemisfair Tax Increment Reinvestment Zone (TIRZ), new development and the PFZ.
Councilmembers are taking a close look at the revenue projections and what could get in the way.
“For something as consequential as this, I think every question or comment is really centered around accountability,” said Councilwoman Ivalis Meza Gonzalez (D8) “For something as big as this, it’s about the conditions that we don’t expect, and making sure that we’re prepared for those.”
Here’s how those plans are unfolding and why, and what to expect next year.
A bigger convention center
The convention center, last expanded in 2016, is now using about 70% of its available exhibit space. That is considered “full” by industry standards, according to the city.
If it remains that size, the consultants say, San Antonio would fall behind within three years in terms of the kind of conventions it can attract and the number of hotels that are booked.
Austin, Fort Worth and Houston are investing heavily in their convention centers, according to a feasibility study by the architecture firm Populous, like many throughout the U.S., as the meeting industry emerges from the COVID pandemic years.
The proposed plan for expanding the San Antonio’s convention center would increase exhibit space from 514,000 square feet to 650,000 square feet and add more meeting space and another ballroom.
That would bring the convention center more in line with places like San Diego and Washington, D.C., staff said.
The project would be completed in phases, with the first launched next year and costing an estimated $700 million. The second phase is expected to come in at $150 million and be completed when funds are more available.
Mayor Gina Ortiz Jones asked for more proof that a bigger convention center was needed. “How do we know that more space makes us more competitive?” she said.
Mario Bass, president and CEO of Visit SA, answered by saying several longstanding groups that meet regularly in the city are expanding and require more space.
Also, meeting planners tend to gravitate to what’s new and the tourism bureau is already seeing that happen with meetings like the annual Texas High School Coaches Association conference.
A better Alamodome
But the cost to expand the convention center leaves less for the 33-year-old Alamodome.
While the city had earlier suggested a major renovation, “we’re not going to be able to do an expansion of the convention center, an arena, and a major renovation to the dome,” Gorzell said.
Instead, he presented a plan to make needed improvements over 10 years at the Alamodome, including upgrades to technology, systems and equipment estimated at $125 million.
But by 2035, he said, the city will then need to decide whether to continue spending more to sustain the facility or consider a major renovation when “financially, things kind of open up a little bit,” he said.
More mobility, no more parking
Proposed improvements to the roadways in the district include extending Nueva Street through Hemisfair Boulevard, improving Durango Boulevard from Interstate 37 to Alamo Street, and building a pedestrian and bicycle bridge.
For those projects, the city would contribute $35 million through a future voter-approved bond program, with the remaining 80% of the total cost expected to come from the Texas Department of Transportation.
Two ongoing studies analyzing mobility and parking needs within the district and just beyond are ongoing and expected to bring solutions in early 2027.
Earlier this year, the city used grant funding to launch a Reconnecting Communities study that’s looking at ways to improve flow throughout the East Side and downtown San Antonio.
A land bridge that first showed up in Project Marvel renderings back in 2024 dropped from the picture early on as hope for federal funding dissipated.
Another study the city commissioned is focused on parking and mobility — getting people into and out of downtown.
Though the final report with recommendations won’t be ready until 2027, it has already revealed that mobility challenges downtown are not caused by a lack of parking supply, said Chief Downtown Officer Shanon Shea Miller.
The city is not planning to build a structured parking facility to support Project Marvel. Instead, it’s looking into ways to help people more easily find existing parking or use other modes of transportation.
A parking garage could be included in the arena, she said.
More costs, (maybe) more revenue
While the city’s studying the added costs of the district, such as police, fire, solid waste service and parks maintenance, it’s also projecting the added revenue.
Revenue sources from the district could include selling commercial rights and the Hemisfair TIRZ increment based on new development in the area.
Parking fees, tickets and facility charges are also potential moneymakers while the city expects some funds to come from the Public Improvement District, concessions and vendor licensing.
The city is exploring whether or not it could collect ground transportation fees and develop public-private partnerships.
Chief Financial Officer Troy Elliott said the $1.2 million annual projected revenue is based on “conservative” assumptions for when the entire project is completed.
What’s next for Project Marvel
City staff told council their next step is to pursue public-private partnerships with city-owned property in Hemisfair that would bring capital investment and revenue to the district.
Those would be brought to the council for consideration in the fall.
Later this year, a 33-member Sports and Entertainment District Community Advisory Committee will hold its first meeting.
The advisory committee is expected to make recommendations to council for community input on the project and how to spend the $75 million community benefits allocation in the Project Marvel agreement.
The city also has developed a website with information about the project and a newsletter. A project dashboard is expected to be released in early 2027.
This story first appeared in the San Antonio Report.
