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A key piece of San Antonio’s long-term Project Marvel vision may need a new home — or may not happen at all.
The city had proposed building a 1,000-room convention center hotel on the site of the San Antonio Water System (SAWS) Central Cooling Plant downtown. But an engineering study done by consultants found that moving the facility would cost more than $300 million.
The original, estimated cost to relocate the facility was roughly $100 million. However, after a feasibility study, SAWS revised the estimate upward to at least $200 million, citing the need for additional cooling capacity to serve the expanded convention center, new hotels, and other downtown buildings. By June 2026, the cost had inflated to the $300 million figure, prompting the city and SAWS to shelve the relocation plan.
In a written statement, city spokesman Brian Chasnoff said, “At this time, development is not being pursued at the Commerce Street chilled water plant site.” Chasnoff added that, since last fall, the city has said they would not pursue a second hotel if the costs weren't reasonable.
Still, planners are exploring alternatives such as expanding the Cherry Street plant, adding satellite plants closer to new development and strengthening the existing chilled water loop.
The plant has supplied chilled water to 22 downtown sites since the late 1960s, including the Alamodome and La Villita.
SAWS Communications Director Anne Hayden said they’re now evaluating alternatives to support downtown development. She noted that residential customers will not foot the bill.
“Only the cooling plant customers pay for cooling plant services. It’s paid for by the City of San Antonio, downtown hotels, conference centers," said Hayden.
Hayden also ensured that the current rate proposal regarding residential and commercial customers remains unchanged.
“None of the funds associated with our proposed water and wastewater rate adjustments were intended for relocation of the chilled water plant,” added Hayden.
Jaime Castillo, Senior Vice President of Operations Support at SAWS, said there is a positive takeaway from the experience for future planning.
"In partnership with the city we handled this right on behalf of the citizens. We did a feasibility study, and we determined that it's not all that feasible, said Castillo. "I think that lesson is learned, to be flexible and do your due diligence."
Attention from the city and SAWS is now shifting to other parts of Project Marvel, including plans for a new Spurs arena and mixed-use development nearby.
San Antonio City Council will receive an update on the Downtown District on June 17. A recommended, cost-effective option for SAWS to provide chilled water for new development in the Sports and Entertainment District is expected later this year.
