A proposed $3 million restoration of a historic auditorium at Our Lady of the Lake University will move forward thanks to a $1.82 million contribution from Bexar County.

Changes in federal funding had left the project in limbo for months.

“This investment represents a powerful commitment to community engagement and access,” said OLLU President Abel Chávez in a statement. “The auditorium will allow us to expand critical services, strengthen partnerships, and continue our mission of serving our community with dignity, purpose and respect.”

Plans for the restoration of the 5,600 square-foot auditorium that sits beneath the Sacred Heart Conventual Chapel were drawn in 2023, after the university landed a 5-year federal grant in 2022 that would support the project.

But with only the demolition portion of the project done, the university received notice in September 2025 that part of this grant was among the many canceled by the Trump administration across the U.S., effectively halting the project.

The county stepped in to fill in a portion of the cost to renovate this historic space, with county commissioners approving the $1.82 million grant out of the county’s general fund.

“This auditorium is more than just a building. It’s a space for opportunity,
support, and connection,” Commissioner Justin Rodriguez said in a statement. “From small business development to health access, this project will have a lasting impact on families and neighborhoods.”

Use of the county’s contribution is strictly limited to construction costs, according to the Grant and Capital Improvement Agreement signed by county and university officials on April 14. 

The renovation, which will both modernize and preserve the historic auditorium, is slated to be completed by the spring of 2027. The bulk of the work will happen this year, according to the agreement.

The agreement states that renovating the auditorium will “stimulate economic development by creating a centrally located venue for small business development activities, workforce training, regional events, and tourism promotion.”

The university also reported an allocation of $815,000 in federal funds for this project. The remainder of the expected cost, $365,000, will be covered with institutional funds and private donations. 

OLLU will remain the sole owner of the property and agreed to notify the county on any changes to the scope of the renovation, or delays that prevent its completion by May 2027. 

Public use of this historic space dates back to the 1960s, when it served as a site for civil rights hearings and community gatherings, university officials said. And because of its historical value, officials also applied for the Texas Historic Preservation Tax Credit for 2024 and 2025 and were approved for the 25% tax credit to help with the renovation. 

This longstanding tradition of opening this space to the community is a key aspect of this investment, university officials said. The renovated auditorium is expected to increase the university’s ability to host large-scale gatherings and public service events.

“This funding reflects our dedication to meeting people where they are and ensuring that essential services are accessible,” said Bexar County Judge Peter Sakai in a statement. “OLLU has proven itself to be a trusted partner, and this facility will further strengthen our ability to serve residents across the county.”

The San Antonio Report partners with Open Campus on higher education coverage.