SAN ANTONIO — The San Antonio Water System and the City of San Antonio mutually agreed to abandon plans to relocate a downtown chilled water plant. An engineering study found that relocating the facility, located on Commerce Street, would cost more than $300 million.
The utility approved a $2.3 million contract to fund a study investigating potential relocation and other initiatives. City officials previously stated that moving the plant was necessary for the construction of a proposed 1,000-room hotel adjacent to the convention center. That proposed convention center hotel project was estimated to cost approximately $750 million.
The utility's chief of staff and senior vice president of operations support and innovation, Jaime Castillo, confirmed the relocation plan was abandoned. City officials stated that the city is not currently pursuing construction of a second convention center hotel because project costs are not reasonable. San Antonio City Council members cited lower downtown hotel occupancy rates when questioning the urgency of the hotel project.
Instead, the utility continues to evaluate alternatives to relocation. "These options include enhancing the capacity of the current district cooling plant and potentially developing additional infrastructure to meet future cooling demands. The ongoing engineering study will help identify the most effective long-term solution." Anne Hayden, spokesperson for the San Antonio Water System, said. The utility operates two district cooling systems in the area; one in downtown and another at Port San Antonio. The downtown system provides chilled water to 22 locations, including the convention center, the Alamodome, and various hotels. Costs for upgrades to the downtown system will be assigned to specific commercial customers rather than regular ratepayers.
No independent assessment of San Antonio Water System’s claims was available.