San Antonio Spurs Arena Megadevelopment Moving Forward

Momentum is building for one of downtown San Antonio’s boldest redevelopment efforts, even if it means leaving part of the city’s past behind.

A state district judge has dismissed a lawsuit seeking to protect the former Institute of Texan Cultures building in downtown San Antonio, removing a key legal obstacle for a city-backed redevelopment plan that could include a new Spurs arena, the San Antonio Business Journal reported.

Judge Tina Torres of the 407th District Court effectively threw out the Conservation Society of San Antonio’s effort to halt demolition of the 1968 World’s Fair pavilion.

The nonprofit sued late last month, seeking to preserve the mid-century structure at 801 East César E. Chávez Boulevard.

“Our intent at this point is to appeal,” said Conservation Society President Lewis Vetter, who expressed concern that the structure may not survive long enough for the legal process to play out. “My expectation is that we’ll end up with a parking lot for a number of years,” he told the outlet.

The former museum sits on a key piece of land targeted by Project Marvel, the city’s sweeping sports and entertainment district proposal long-rumored but only recently beginning to materialize.

Earlier this month, the City of San Antonio, Bexar County and the San Antonio Spurs signed an initial, non-binding agreement to officially relocate the San Antonio Spurs to a downtown arena and repurpose the Frost Bank Center.

Project Marvel calls for redevelopment of the Hemisfair and Alamodome area into a sports and entertainment district.

It includes proposals for a new Spurs arena on the former Institute of Texan Cultures site, a Convention Center expansion, a 1,000-room hotel, a land bridge over Interstate 37 connecting to the East Side, a 5,000-seat live entertainment venue in the John Woods Courthouse and roughly 50 acres of mixed-use development.

The city still has not named a development partner, or finalized costs, but internal estimates suggest a total price tag between $3 billion and $4 billion, depending on the scope and financing structure, Texas Public Radio reported. A mix of private equity, tax credits, venue taxes and public-private partnerships is expected to fund the district’s various components.

UTSA, which controls the site, has already begun remediation work, removing concrete panels and preparing the pavilion for access and partial deconstruction. In December, the Texas Historical Commission issued a demolition permit for the property.

University officials say the remediation is compliant with state law and will continue through mid-May.

The legal challenge is now paused, pending appeal. The city appears one step closer to activating the high-profile Hemisfair site for redevelopment. But preservationists warn the decision could set a precedent for the future of other historically significant, if underutilized, public buildings.

— Judah Duke