San Antonio City B Session Update on Downtown Sports and Entertainment District - October 28, 2026

The City of San Antonio B session, called to order at 2:03 p.m. on Wednesday, October 28, 2026, provided a comprehensive update on the proposed downtown sports and entertainment district. Presentations covered the convention center expansion feasibility study, Alamo Dome capital improvement plan, financing updates, district cost of services study, mobility and accessibility study, exploratory procurements, community engagement, and next steps. Council members discussed financial assumptions, phasing, revenue projections, and community benefits.

Convention Center Expansion Feasibility

• Michael Lockwood of Populous presented the feasibility study for expanding the Henry B. Gonzalez Convention Center. The current exhibit hall occupancy is at 75%, exceeding the 70% practical maximum that signals a need for expansion. Current total sellable inventory is 728,000 sq ft (514,000 exhibit, 94,000 ballroom, 120,000 meeting). The recommended targeted expansion would grow to 650,000 sq ft contiguous exhibit space, add a 50,000 sq ft ballroom, and increase meeting space to 143,000 sq ft, at a total project cost of $850 million. Phasing is possible: Phase 1 ($700 million) includes full exhibit hall expansion and flexible ballroom designed to double as meeting space; Phase 2 ($150 million) adds 36,000 sq ft of meeting rooms. The expansion would put San Antonio in the top 10 nationally for contiguous exhibit space. Market capture analysis shows configuration A (full facility) captures 95% of market share; configuration B (two events) captures 85–91% each.
• Mary O from Visit San Antonio presented booking pace data. Compared to 2017–2019 benchmark years, future bookings for 2031–2033 show a significant deficit (e.g., 96,000 room nights behind for 2031, 62,000 for 2032, 86,000 for 2033) due to competing convention center expansions in other Texas cities. The study identifies 74 additional groups representing $718 million in potential economic impact that could be pursued with the expansion.

Alamo Dome Improvements

• Ben outlined a proposed $125 million capital investment over 10 years for the Alamo Dome, focusing on technology systems, equipment, and end-of-life replacements. This replaces the previously assumed $100 million plan. The investment supports operations through the early 2030s, positioning the city to make a decision around 2035 on a major renovation or continued investment.

Financial Update

• Ben presented the financing structure for the arena ($489 million city contribution) using Spurs arena lease, property taxes from guaranteed development, ground leases, and project financing zone (PFZ) state revenues. The PFZ baseline revenue projection totals $1.923 billion over 30 years at a 4.6% compound annual growth rate. The model assumes approximately 1,160 additional hotel rooms by 2029, with historical growth of about 225 rooms per year. The base model produces about $1.2 million in estimated annual incremental general fund revenue, and about $1.0 million in annual recurring service costs, resulting in a nearly break-even position ($163,000 positive). Revenue sources include sales tax, mixed beverage tax, CPS Energy, and SAWS. The PFZ revenue starts small (projected ~$2.5M in 2026, actual closer to $1M) and grows to $157.6M by 2055.
• Key assumptions: city hotel tax compound annual growth rate of 3.5% (base), with stress scenarios from 2.75% to 4.3%; interest rates from 3–4% on earnings to 5–7% on debt.

District Cost of Services Study

• Troy Elliott reviewed the study by MuniCap and ESI, evaluating the financial impact of the sports and entertainment district (arena, Wood Courthouse venue, convention center expansion, mixed-use private development). The model projects incremental general fund revenues and service costs, assuming full built-out district (Phase 1 and 2 private development, arena operational, Wood Courthouse operational, convention center expanded). Estimated annual incremental revenue: $1.2 million; estimated annual general fund costs: $1.0 million, primarily from mixed-use development and Hemisphere Park maintenance. Venue costs are allocated back to events/venues to avoid general fund impact. The model allows for dynamic adjustments based on event types and concurrency.

Mobility & Accessibility Study

• Shannon Miller presented the downtown accessibility and mobility study led by Walker consultants. Key findings: downtown does not lack parking supply (over 30,000 public spaces), but challenges stem from single-occupancy vehicle dependence, uneven parking utilization, event-day congestion, and lack of integrated information. Emerging recommendations: improve parking discovery and wayfinding, optimize event parking supply through coordination and pricing, strengthen multimodal access (VIA transit, ride-share, park-and-ride), and implement demand management strategies. A separate Reconnecting Communities grant is studying improved connections across I-37 between the East Side and downtown. Final reports expected early 2027.

Exploratory Procurements & P3 Opportunities

• Staff proposed issuing solicitations in spring 2027 for: (1) P3 opportunities for the