City authorizes $30M offer for federal parcels tied to proposed arena; residents and some councilmembers press for transparency and affordability safeguards

San Antonio City Council voted Jan. 15, 2026 to authorize the city manager to submit an offer to the General Services Administration to acquire five parcels (about 5.7 acres) near East Cesar Chavez Boulevard for up to $30,000,000 plus closing and carrying costs of up to $120,000.

Staff said the $30 million figure was based on a joint appraisal ($29,995,000) and that the Spurs have agreed to provide the $30 million and cover up to $3,000,000 in earnest-money deposit and carrying costs. If the Spurs’ arena project advances and is financed, staff said a contingency deed in favor of the Spurs would be destroyed and the city would retain fee simple title. If the arena does not move forward and the city opts not to reimburse Spurs’ carrying costs, the contingency deed would convey title to the Spurs per the agreed term sheet.

Public comment and concerns: Cindy Munch urged a no vote, criticizing what she described as a 'shroud of nondisclosure agreements' and warning that the use of tax increment reinvestment zones (TIRZ) has redirected development taxes and may reduce general-fund revenue. Munch asked why a public acquisition is happening now and argued that Spurs could have purchased the property directly. She also questioned the $4 million annual rental figure for a proposed $1.3 billion arena noted in backup materials.

Council questions and staff responses: Councilmembers asked staff to explain the federal disposition process. City staff said the U.S. Department of Health and Human Services screened the property for homeless-service suitability, received no respondents, and then the General Services Administration opened a negotiated sale to public entities. Staff said the city has identified this property as part of the mixed-use development supporting the arena financing plan and recommended approval of the ordinance to submit the offer (GSA deadline Jan. 26). Council members pressed staff for lists of homeless-service providers who had responded during the federal screening; staff said they could request that information from the federal government.

Affordability and downtown control: Councilmembers stressed preserving public oversight of downtown development and asked staff to prioritize retaining downtown property and including affordability protections in future negotiated agreements. Councilwoman Castillo asked that staff provide the list of homeless-service providers and explore funding mechanisms to buy down rents within the planned mixed-use development.

Financial and procedural timeline: Staff said the appraisal informed the $30M offer; if the council approves the offer, staff would submit it midnext week and the GSA may take up to 120 days to review. If GSA accepts, closing could be 30–60 days later. If GSA rejects the offer, the earnest money would be returned to the Spurs.

The ordinance authorizing the offer was approved following council discussion and public comment.