San Antonio council hears Project Marble briefing; MOU with county and Spurs described as next step amid neighborhood concerns

San Antonio City Manager Eric Walsh and city staff on Wednesday briefed the City Council on Project Marble, a proposed downtown sports and entertainment district that would include a potential new NBA arena, a convention center expansion, a large deck park (the “land bridge”) over IH‑37, and other public‑space and redevelopment projects. Walsh said the three parties — the city, Bexar County and the San Antonio Spurs — have worked toward a nonbinding memorandum of understanding that would set a framework for further negotiations and analysis.

"The MOU is a non binding high level document," Walsh said during the B‑session briefing, adding that the MOU "communicates the willingness of the parties to engage, collaborate, and work together on a proposed sports entertainment district, a new downtown NBA arena, and the redevelopment area around the Frost Bank Center." Walsh also told council that the county considered and approved the MOU yesterday.

Why it matters: staff presented the MOU as an enabling, early step to launch detailed work on financing, community engagement and feasibility studies. Council members pressed staff on several topics the briefing identified as central to whether the district moves forward: how projects would be sequenced and paid for; whether existing public facilities (the Alamodome, Frost Bank Center and convention center) would be prioritized; and how the city would protect East Side neighborhoods from displacement.

Staff outlined the district’s pieces and preliminary cost ranges. Lori (city staff) described public‑space elements and venue sizes staff and the Spurs have discussed: an NBA arena in the 18,000–20,000‑seat range and an additional 4,000–6,000‑seat event venue. Chief Financial Officer Ben Gorzell presented preliminary financing options and multiple revenue sources staff is modeling, including the city’s 9% hotel occupancy tax, a Project Finance Zone (PFZ) created by state statute last legislative session, tax increment reinvestment zones (TIRZ), a possible county venue tax, private investment and a Spurs contribution.

Gorzell warned the PFZ projection often reported in media—$2.5 billion over 30 years—does not translate into $2.5 billion in spendable up‑front cash. "I want to say right off the bat, we do not have $2,500,000,000 to spend on projects within the district," he said, describing the PFZ as an incremental, long‑term revenue stream that would need to be combined with other sources to support bonding. He called the funding work "preliminary due diligence" and said specific deals, term sheets and feasibility studies would come back to council.

Council reaction and community concerns: several council members asked for community engagement and neighborhood representation before any conveyance of public land or formal agreements. Council Member Mickey Rodriguez (District 2) objected to including transfer of Willow Springs Golf Course to the county and said district representatives must have a formal seat in negotiations. Rodriguez said he does not support conveying Willow Springs and asked that the MOU be revised or that the council set clear limits for city contribution to an arena.

Other council members emphasized infrastructure, parking and affordable housing as priorities alongside venues. Council Member Rocha Garcia and others asked for plans and timelines for traffic, parking and construction impacts. Council Member Ben Cabello Haverda said losing Willow Springs would be a "nonstarter" for her. Council Member White said the city should not raise property taxes to fund the projects and called the MOU, as drafted, "hollow" unless it provides more detail for voters ahead of a potential vote.

Staff next steps and timeline: Walsh and staff outlined immediate next steps if the council approves staff authority: (1) finalize and execute the nonbinding MOU with the county and Spurs, (2) continue due diligence and feasibility work on anchor projects, (3) work with the county on East Side redevelopment details, (4) develop a funding framework for an NBA arena, and (5) establish a regular council briefing tempo.

Staff and the Spurs also said they expect a venue tax election could be held in November 2025 and that the city is exploring whether a general obligation bond measure or other capital plan could be timed for 2025 or the regularly scheduled 2027 bond cycle. Gorzell gave high‑level cost ranges used in preliminary modeling: convention center expansion $700–$900 million; arena $1.2–$1.5 billion; a revised, near‑term Alamo Dome program in the low‑hundreds of millions through 2035; a convention hotel $750 million plus; Wood Federal Courthouse conversion $100–$150 million.

Quotes from the briefing: "We want to preserve and maintain our strong bond rating," Gorzell said when describing the need to manage municipal risk while assembling financing. Lori said of the arena location, "The fan experience starts in your car when you're coming to the game, and it ends when you leave the game," explaining why walkable public spaces are central to the concept.

Votes at a glance: Bexar County — approved (yesterday) a nonbinding memorandum of understanding to begin collaboration with the city and the San Antonio Spurs on a downtown sports and entertainment district (approval cited by city staff in the briefing; mover/second and vote tally not specified in the city transcript). City of San Antonio — no council vote yet; staff said an item on the A‑session agenda the following day would, if approved, authorize staff to negotiate and finalize the MOU (action: proposed; outcome: not yet decided).

What remains unsettled: the draft MOU is nonbinding and staff repeatedly said that any specific financing term sheet, property conveyance or development agreement would return to council for review and approval. Multiple council members demanded clearer commitments on community benefits, neighborhood protections, affordable housing, workforce and prevailing wage or project labor agreements, and regular public updates before voters see ballots on any revenue measures.

Ending note: staff said this briefing is an early step and that project details will change with feasibility studies, partner negotiations and community input. The council scheduled additional briefings and the city manager committed to drafting a memo capturing council feedback and to returning with more specific analytics in the coming months.

Speakers quoted or cited in this article are drawn from the City Council B‑session transcript on Feb. 26, 2025.