The City of San Antonio is eager to expand its footprint in Hemisfair, with a focus on developing approximately 50 acres of prime land in the eastern quadrant of this iconic downtown area. This significant parcel offers the potential for various developments that could revitalize the region.
City Manager Erik Walsh highlighted at a recent event hosted by the San Antonio Report that the City currently possesses much of Hemisfair, which includes notable structures such as the Tower of the Americas and the Convention Center. However, beyond its existing holdings, the City is particularly interested in acquiring two additional major parcels that encompass roughly 40 to 50 acres ripe for development.
The Union Square Building, along with expansive surface parking lots totaling over eight acres, is currently under the ownership of the federal government and managed by the General Services Administration (GSA). Walsh emphasized that the city holds the right of first refusal on this valuable property, stating, “We’ve got to go through a federal process, and we’ve initiated that, but our intention is to acquire that from the federal government … So we’re moving in that direction.”
Although details about the future of the GSA-owned property remain uncertain, speculation has circulated regarding a forthcoming proposal that may include the development of a new San Antonio Spurs basketball arena. Walsh did indicate, however, on Monday that the urgent need for additional meeting spaces and hotel accommodations is crucial for the city to remain competitive with neighboring cities, especially since Austin is planning an expansion of its own convention center.
In a strategic move in late 2023, the City declared the Convention Center and Alamodome as a Project Financing Zone (PFZ). This designation, crafted by the state legislature, allows the city to retain a portion of the revenue growth generated by local hotels and businesses over a duration of 30 years, thereby creating a financial reservoir for qualifying projects aimed at revitalization.
The expansion of the Convention Center, which cost $325 million and almost doubled its size in 2016, reflects the city’s commitment to enhancing its hospitality offerings. Complementing this is the Grand Hyatt, a 1,000-room hotel constructed by the city in 2005, which plays a vital role in attracting large conventions and events.
Walsh explained that the value of a convention center hotel primarily lies in its capacity to accommodate block bookings for large groups traveling for conventions, but he noted that San Antonio is increasingly losing these bookings to sole leisure travelers. “The fact of the matter is that we’re losing block rooms because we have so many leisure travelers coming into San Antonio, so they’re giving away the block rooms,” he said.
A plan will be presented to the City Council in November to initiate discussions surrounding the future of Hemisfair and the development lands under consideration. “And that’s just to begin the conversation,” Walsh said, emphasizing the collaborative approach in addressing San Antonio’s development needs.
In 2022, the City successfully acquired the John H. Woods Courthouse from the GSA, a property formerly known as the Confluence Theater, along with the Adrian Spears Judicial Training Center. The latter will soon become the new campus for the Universidad Nacional Autónoma de México, marking a significant educational investment in the area.
The City has expressed ongoing interest in the Union Square Building and its adjoining parking lots to the GSA over the years, sparking dialogue about potential developments. According to City spokesman Luke Simons, “We have initiated conversations with GSA leadership and some of our congressional delegation informing them of our interest.” He added that while the GSA is navigating preliminary stages, formal processes are yet to be embarked upon.
Pearl developer Oxbow has also expressed interest in these properties as they plan to construct a multifamily, mixed-use development named Southtown Aldea at 141 Lavaca St., which will be directly across the street and adjacent to GSA-owned lots. Omar Gonzalez, the director of development at Oxbow Development Group, stressed the importance of how developments on the land would influence the future phases of the Aldea project, stating, “We would love to own or lease or control what goes here.”
The University of Texas at San Antonio (UTSA) has been a significant presence in the easternmost section of Hemisfair since 1973, overseeing the Institute of Texan Cultures (ITC). Following its closure in May, UTSA now plans to relocate the museum’s exhibitions to a prospective permanent site closer to the Alamo, in collaboration with the city and 1859 Historic Hotels, which manages the Crockett Hotel. This collaboration may transform a current hotel parking lot into a cultural and educational hub.
The ITC occupies approximately 13.5 acres in the public-private Hemisfair development, a sizeable area that could accommodate a sports arena or other significant structures should it be redeveloped. Efforts to preserve the ITC have prompted the Conservation Society of San Antonio to seek landmark designation to prevent its demolition.
In January, the Texas Historical Commission (THC) recognized that the ITC qualifies for listing on the National Register of Historic Places, which would afford historic tax credits for any redevelopment. However, this listing imposes no restrictions on what a future non-federal owner might do with the property, allowing for the possibility of demolition.
In alignment with the city’s interests, the University of Texas System Board of Regents initiated talks with San Antonio regarding a potential sale of the ITC property, with the city indicating this could facilitate a significant “downtown revitalization project.” This escalated interest further fueled speculation about the land being utilized for a new downtown facility for the Spurs basketball team.
Although the university expressed intentions to demolish the ITC building in April, the THC’s recent decision granted it the status of a State Antiquities Landmark, the highest form of historical designation within Texas. This designation necessitates that any institution of higher learning consult with the THC before making alterations or demolishing the structure, although it doesn’t entirely preclude such actions.
On Thursday, UTSA spokesman Joe Izbrand commented on the university’s commitment to recognizing the ITC’s historical significance while evaluating optimal strategies to maximize the benefits from the Hemisfair Campus, ensuring both temporary and permanent solutions for the ITC’s future.
### Interview with San Antonio City Manager Erik Walsh
**Interviewer:** Thank you for joining us today, Erik. There’s a lot of excitement surrounding the potential development in the Hemisfair area. Can you give us a brief overview of the City’s plans for that 50-acre site?
**Erik Walsh:** Absolutely, and thank you for having me. The City of San Antonio is focused on revitalizing the Hemisfair area, especially the eastern quadrant where we have approximately 50 acres of prime land. We’re looking not just to enhance existing structures like the Tower of the Americas and the Convention Center but also to acquire additional parcels, which could significantly boost our development efforts.
**Interviewer:** You mentioned acquiring the Union Square Building and adjacent parking lots from the GSA. What steps are being taken to facilitate this acquisition?
**Erik Walsh:** We currently have the right of first refusal on that property, which is crucial. We’ve initiated the necessary federal processes to move forward. Our intention is clear—we want to acquire this land to ensure it can be integrated into our development plans, enhancing our capacity for conventions and other events.
**Interviewer:** There’s been some speculation about a new arena for the San Antonio Spurs. Is that part of the discussions about the GSA-owned property?
**Erik Walsh:** While I can’t provide specific details at this stage, the need for a new sports facility is part of the larger conversation about what we can develop in Hemisfair. However, our primary focus right now is on increasing meeting spaces and hotel accommodations to remain competitive with cities like Austin, which is planning expansion for its own convention center.
**Interviewer:** The designation of the Convention Center and Alamodome as a Project Financing Zone sounds innovative. How does this benefit the city?
**Erik Walsh:** This designation allows the city to capture a portion of the revenue growth from local businesses and hotels over 30 years. Essentially, it creates a sustainable financial source for qualifying revitalization projects. This is a critical step for us to enhance our hospitality offerings and attract larger events.
**Interviewer:** You’ve mentioned the balance between leisure and convention travelers. How is the city addressing the challenge posed by increasing leisure travel?
**Erik Walsh:** That’s a significant concern. We’re observing a trend where leisure travelers are outpacing business travelers, which impacts our ability to secure block bookings for conventions. We’re actively seeking strategies to ensure we can convert more leisure travel into convention business and increase our hotel room capacity to accommodate large groups.
**Interviewer:** As you plan for discussions with the City Council in November, what are your hopes for the collaborative approach?
**Erik Walsh:** My hope is that we can engage stakeholders—including residents, businesses, and other partners—to make informed decisions about the future of Hemisfair. This is about creating a vibrant, interconnected space that benefits everyone in our community. Our goal is to ensure that all voices are heard in this project.
**Interviewer:** Thank you for your insights, Erik. The potential developments in Hemisfair could significantly shape San Antonio’s future.
**Erik Walsh:** Thank you, and I appreciate the opportunity to share our plans. We’re looking forward to the collaboration and to bringing new life to this iconic area.