San Antonio City Council Session B - Downtown Entertainment District Update - June 17, 2026

The San Antonio City Council met in Session B on June 17, 2026, at 2:00 PM, to receive an update from city staff on the downtown entertainment district initiative. The presentation covered progress on a working group, feasibility studies for a new arena and convention center expansion, mobility and housing planning, and financial considerations. Council members raised questions about transparency, community engagement, small business inclusion, affordable housing, parking, and the use of public financing tools. No votes were taken, but several directives were issued for future reports.

Discussion Items

• Downtown Working Group Update: Shannon Shimuler, Chief Downtown Officer, reported that a downtown working group formed in April 2026 includes five council members and community leaders. The group is reviewing housing development (including Opportunity Home and the San Antonio Housing Trust), mobility efforts, and a strategic framework for the downtown area. The next meeting will focus on public assets and strategic plans.
• Program Management and Acquisitions: The city has contracted Accentro as the executive program manager for the entertainment district. Two pending acquisitions were noted: the federal building at Indianola and César Chávez Boulevard (5.8 acres, approximately $60 million), and a mobility study to evaluate city installations and alternative access options. The council will consider $500 million for the mobility study, with a feasibility study expected in September.
• Convention Center Expansion and Arena: Staff presented that the convention center expansion to 750,000 square feet is needed to maintain competitiveness with Austin, Dallas, and Houston. The feasibility study for the arena and convention center will be presented in September, including cost estimates and a procurement timeline. Councilmember Spears noted that the hotel component is critical for booking large conventions, but the current study will not include a new hotel unless market conditions change.
• Housing and Affordability: Councilmember Castillo emphasized the need for affordable housing units accessible to workers (nurses, employees) and preservation of existing affordable stock. Councilmember Mesa González questioned how small businesses are included in planning, urging that they be part of the dashboard and presentations. Staff responded that there are multiple tools (joint ventures, assistance programs) that can be used depending on project requirements.
• Mobility and Parking: Councilmember Spears raised concerns about parking demand in the downtown area, noting the Texas culture of vehicle ownership and complaints about high parking costs. He suggested a resident parking rate. Councilmember Galván supported walkability and non-vehicle mobility but cautioned against excluding people with mobility challenges. The mobility study will evaluate existing private stations and coordinate with VIA and other entities.
• Financial Transparency and PFC Use: Councilmember Castillo asked about the use of Public Facility Corporation (PFC) revenues for affordable housing, noting that the state law defines PFC uses narrowly. Staff clarified that PFC can be used for infrastructure related to the arena and convention center, but not directly for low-cost housing. Councilmember Munguía requested a legal analysis on the maximum transparency possible for working group meetings. Mayor Jones noted that the group's meetings are currently not fully public, but a resolution could be brought to expand transparency. Councilmember Galván supported opening the process to the public, suggesting virtual town halls and community meetings at existing public facilities.
• Spurs Arena and Public Contribution: Councilmember Castillo asked about the status of negotiations with the Spurs. Staff reported that Phase 1 design and financing development are ongoing, but discussions have been delayed by a few weeks. No formal request has yet come to council. Councilmember Munguía referenced a prior request for $200,000 for the Spurs that has not been presented. The mayor noted that the total project may involve $1 billion in bonds, with $5 million still outstanding from previous contracts.
• Financial Risk and Economic Downturn: Councilmember Munguía asked about the city's obligation to pay profit bonuses to the Spurs in the event of an economic downturn (e.g., COVID). Staff clarified that there is a legal obligation under the contract, but the city has structured reserves, feasibility studies, and debt restructuring options to mitigate risk. General fund would be a last resort, and credit rating agencies expect the city to complete the project.

Key Outcomes

• The feasibility study for the downtown arena, convention center expansion, and connected infrastructure will be presented to council in September, along with a proposed procurement timeline.
• Council directed staff to provide a legal analysis on how to maximize public transparency for the working group meetings, including whether meetings can be live-streamed or made fully open under state law.
• Staff will prepare a report on how PFC revenues can be used for affordable housing and other community benefits, including a complete legal definition of eligible infrastructure.
• Council requested that small businesses be explicitly included in future presentations and planning processes.
• The meeting concluded with the council moving into executive session at approximately 4:05 PM to discuss legal matters related to the entertainment district.