An updated rendering of what Project Marvel might look like if it ever gets completed. Credit: City of San Antonio

City Council voted unanimously on Thursday to let City Manager Erik Walsh begin talks with Spurs Sports & Entertainment [SS&E] and Bexar County to hash out a non-binding agreement to construct an NBA arena with a price tag up to $1.5 billion.

The vote comes after two days of messy debate about a potential memorandum of understanding for the project and Project Marvel — the city’s plan for a pricy sports and entertainment district that local lawmakers hope will include a convention center expansion and new concert hall along with the arena.

Although the vote allows Walsh to begin conversations with the Spurs and the county, the city’s priorities on which aspects of Project Marvel should take precedence have changed considerably since staffers delivered the initial presentation on the project to council in November.

Council’s priorities now include a new arena for the Spurs at Hemisfair with a $1.2 billion to $1.5 billion price tag and a 150,000-square-foot expansion of the Henry B. Gonzalez Convention Center at a cost of between $700 million and $900 million. The package also would include a $100 million to $150 million conversion of the John Wood Federal Courthouse into a 5,000-seat concert venue.

The city hopes the three projects, which would run as much as $2.5 billion in total, could be paid for by San Antonio’s 9% hotel occupancy tax, arena naming rights, tax inclusion zones, project finance zones and public-private partnerships. However, a solid plan on how exactly the city and county will pay for this expensive project is yet to be determined.

“If you look at any one of those anchor projects that are in [the presentation], if we were just trying to do one of those, that would be difficult. We’re trying to do several at the same time,” San Antonio Chief Financial Officer Ben Gorzell told council on Wednesday. “So, this is going to become much more difficult and much more complex as we try to get the early phases of this district put in place.”

The other phases initially proposed to the council in November include an Alamodome renovation, a landbridge connecting downtown to the East Side and a 1,000-room convention center hotel. All of those options appear to be on hold until the city and county can come up with new sources of funding.

Tommy Calvert, Willow Springs and other Controversies

As part of Thursday’s approval, council voted 9-2 to add an amendment to the proposal allowing District 1 Councilwoman Sukh Kaur, who represents the neighborhood in which Project Marvel will be built, and District 2 Councilman Jalen McKee-Rodriguez, whose district includes the Frost Bank Center, the Spurs’ current digs, to attend meetings with SS&E and county attended by Walsh.

That amendment resulted after McKee-Rodriguez expressed skepticism about Precinct 4 Bexar County Commissioner Tommy Calvert’s plans for the city-owned Willow Springs Golf Course.

As part of a non-binding agreement approved by Bexar County Commissioners Court with the city and SS&E on Tuesday, the county demanded that Willow Springs – located across the street from the Frost Bank Center – be transferred from the city to county ownership.

“On Jan. 25, Commissioner Clavert publicized plans for development that would take place on and around the golf course,” McKee-Rodriguez said. “The county is all but ready to issue a [request for proposal] for this development. As soon as we indicate that we are willing to negotiate the golf course away, any amount of community engagement is second to the planning the county has already begun. How can my community trust that?”

Indeed, during two East Side town hall meetings, Calvert presented the outline of a plan for he’d like to see happen to Willow Springs, Frost Bank Center and Freeman Coliseum should the Spurs leave. Although the town halls were presented as forums for public engagement, Calvert had already contacted urban planners and consulting firms to create a rendering of what a proposed East Side entertainment district could look like.

Calvert’s presentations clearly didn’t sit well with McKee-Rodriguez, who expressed concern that the development plans could further degrade one of the few green spaces left on the East Side — and with little public input.

Although the amendment ultimately passed, it wasn’t without controversy. District 3 Councilwoman Phyllis Viagran called McKee-Rodriguez’s motion nothing more than “mayoral” politics ahead of the May election.

“I am offended that we want to take this and basically change our city charter from the back door, because that’s what this sounds like,” Viagran said. “If you don’t believe [Walsh] can do [the negotiations alone], then vote no.”

Other fireworks on the dais during what District 5 Councilwoman Teri Castillo described as a “messy” two days of debate included council members continually asking City Attorney Andy Segovia to clarify what the hell they were even voting on and an attack on local journalists for their scrutiny of Project Marvel by District 8 Councilman Manny Pelaez, a mayoral candidate.

Outgoing Mayor Ron Nirenberg and Castillo also got into it over a failed amendment she proposed that would have allowed Walsh to negotiate the new agreement with the Spurs and the county but require it be brought before council before it could be executed.

“Councilmember Castillo, respectfully, we give [Walsh] that authority by hiring him,” Nirenberg said with a smirk.

After Thursday’s vote, Walsh — with Kaur and McKee-Rodriguez in tow — will embark on months of negotiations with SS&E and the county. If all goes to plan, a preliminary deal could be approved by July, making it eligible to go before voters in the November election.

However, given the project’s scope, it’s still-murky funding sources and potential for squabbles between the city and county, it remains unclear how realistic a timetable that may be.

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