North San Antonio Edition | February 2026

Government

BY PARKS KUGLE

In a move to take the Sports and Entertainment District from a vision to a reality, the San Antonio City Council voted unanimously on Jan. 15 to authorize the city manager to execute a $30 million private acquisition and escrow agreement between the city, the San Antonio Spurs Holdings, LLC and Chicago Title, who will act as the escrow agent for the federal government. In a nutshell According to city documents, the city is making an oer to purchase three properties owned by the federal government, including the nal federal oce building within Hemisfair Park and two parking lots across Cesar Chavez Boulevard. An appraisal value of $29.95 million was deter- mined for all three properties. According to city documents, the proposed oer of $30 million plus closing costs of up to $120,000 was made after discussions with the General Services Administration, or GSA. As part of the term sheet for the new downtown NBA arena, the Spurs agreed to contribute $30 million towards the city’s acquisition of the GSA properties. According to city documents, the prop- erties will be used for mixed-use development. Though the acquisition will not have a scal impact on the city, and oce space leases will cover the initial operational costs after the purchase, the city will be nancially obligated for any operating cost shortfalls prior to the San Antonio, Spurs to purchase $30M in properties

The Federal Building is one of the three properties that may potentially be acquired through the agreement.

PARKS KUGLECOMMUNITY IMPACT

redevelopment. The shortfalls will be covered by the city’s hotel occupancy tax capital and redemp-

Potential land acquisitions

tion fund. Stay tuned

The federal government is estimated to make a decision on the city’s oer within 90-120 days. Ben Gorzell Jr., chief of nancial and administrative services, said that although there was a chance the federal government could turn down the city’s oer, prior negotiations point towards an accep- tance of the deal. “We believe that, based on the appraisal [and] the negotiations, the oer will be viewed favor- ably,” Gorzell said.

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