A rendering provided by the city shows what Project Marvel could look like. Credit: Courtesy Image / City of San Antonio

On Wednesday, San Antonio City Manager Erik Walsh debriefed City Council on a proposed $442 million bond package for fiscal years 2027-2032.

The proposed package, which prioritizes infrastructure projects around San Antonio, is the smallest in more than two decades, but its implications for Project Marvel, property taxes and downtown development are big. Here are five takeaways from Walsh’s presentation:

1.)  The public vote on the bond could be a stumbling block for Project Marvel

The public will vote on the final infrastructure bond in May or November of next year, depending on when City Council wants it to appear on the ballot. The bond includes $35 million infrastructure improvements around Hemisfair that, according to Walsh’s briefing, must be completed for a new San Antonio Spurs arena to proceed. That arena, of course, is the crown jewel in Project Marvel, the $4 billion proposed sports and entertainment district meant to revitalize downtown. ​If voters reject the bond, the city “would have to reexamine where we’re at with the whole thing,” Walsh said.

2.) The city is seeking state help for Project Marvel infrastructure

City officials are hopeful the Texas Department of Transportation will serve up $85 million for downtown improvements, including those around Hemisfair needed for Project Marvel, Walsh told council on Wednesday. The city and state haven’t yet reached an agreement, but Walsh said he’s had “good conversations” with state officials, adding that he “trusts them.”

3.) Property taxes could go up again if some on council get their way

While city staff identified a wish list of some $5 billion in infrastructure projects that could be covered through bond money, Walsh said he’s pushing for a $442 million bond, which is “what the city can afford” without raising property taxes. However, some City Council members, especially those in lower-income districts, are pushing for a bigger bond so the city can tackle more projects. That would necessitate yet another property rate increase, according to Walsh.

4.) The city could face blowback on the promise taxpayers won’t bankroll the Spurs arena

During the public vote on a new Spurs arena, officials with the NBA franchise and its backers argued that only visitors would pay for the new $1.3 billion facility. However, if council decides it wants a bigger bond and proposes another property tax increase, some warn that narrative will unravel and allow anti-arena forces to portray the bond as a “Spurs property tax increase.” Councilman Marc Whyte on Wednesday said that path could incite a “Holy War,” or a constituent uprising of biblical proportions.

5.) More Project Marvel components are now off the table

Initially, the improvements at Hemisfair to be covered by the bond were estimated at around $220 million. That figure declined from previous estimates, in part, because the city scrapped plans for an $85 million parking garage at the Alamodome as part of Project Marvel. It’s unclear from the presentation whether or how the city plans to address the loss of parking. The garage is the latest component of Project Marvel to be scaled down or scrapped altogether.

San Antonio City Council will reconvene to discuss the bond again on Oct. 14.

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Michael Karlis is a multimedia journalist at the San Antonio Current, whose coverage in print and on social media focuses on local and state politics. He is a graduate of American University in Washington,...