New details about the transformative Midway Rising proposal are now available for the public to review, as the redevelopment of the 48.5-acre Sports Arena site moves forward. If approved by the San Diego City Council, Midway Rising will be the largest affordable housing project in California history, providing some reprieve to the housing affordability crisis.

“San Diegans have waited decades for the Sports Arena site to reach its full potential", said Mayor Todd Gloria. "Midway Rising would deliver 4,250 homes—including at least 2,000 affordable homes—along with a modern entertainment center, new parks, infrastructure and thousands of jobs. If approved, it would become the largest affordable housing project in California history. These proposed agreements provide clear requirements, long-term City oversight and protections to ensure the developer delivers what has been promised, while bringing substantial private investment and an estimated $460 million in public amenities with no upfront cost to the City. This is the scale of action our housing crisis demands, and the transformation Midway deserves.”

The City of San Diego has released proposed real estate agreements and plans for the redevelopment project, all as part of the Disposition and Development Agreement (DDA) between the City and Midway Rising, LLC, the Master Developer.

On Friday, Oct. 16, the DDA and a Resolution of Intent to form an Enhanced Infrastructure Financing District (EIFD) will be presented to the City Council’s Land Use and Housing Committee for a recommendation to proceed to a full City Council hearing.

Documents detail how the City and Master Developer will administer and manage the construction and new infrastructure at the Sports Arena site and oversee various lease agreements over their 85-year term. Midway Rising would transform the property into a vibrant, mixed-use development and entirely new walkable neighborhood. Together, the City and Midway Rising, LLC, negotiated a comprehensive framework of interconnected transaction documents that establish legal, financial, operational and development requirements. These agreements establish how the project will be built, financed and managed over time, while setting requirements and milestones the developer must meet.

Features include:

• At least 2,000 affordable homes dedicated to a range of affordability levels with an average affordability not exceeding 60% of Area Median Income (AMI), including at least 200 permanent supportive housing units.

• Approximately 2,250 market-rate apartment homes.

• A modern, 16,000-seat entertainment center, replacing the aging Pechanga Arena, which currently seats 12,000 people.

• 14.5 acres of parks and public spaces.

• A mixed-use entertainment, arts and cultural district that includes 130,000 square feet of shops and restaurants.

• Infrastructure improvements on- and off-site, including roadways, bike paths and transit facilities.

• Sustainable building features incorporated into all buildings within the project.

The cost to construct the new public amenities will be fronted by the developer and bring an estimated $460 million in value for San Diegans and come at no upfront cost to the City. The Midway Rising development team plans to use considerable private capital investment to construct the site and fully improve the adjacent public spaces.

“The opportunity to transform this site carries catalytic economic promise,” said Economic Development Director Christina Bibler. “This project will create thousands of jobs, generate substantial new local revenue and unlock the potential of long-underused City-owned land. By delivering a significant number of new homes — particularly affordable options — we are not only addressing a critical community need but also setting the stage for long-term economic vibrancy in the neighborhood. Revitalizing an area that has gone without major investment since the 1960s will establish a sustainable economic engine that benefits San Diegans for generations.”

Rather than a single agreement with Midway Rising for the entire redevelopment, the City’s Economic Development Department is proposing a combination of leases and transactions to establish legal, financial and operational requirements that provide the City with long-term oversight and protections to ensure obligations and milestones are met. These real estate agreements include the DDA, a horizontal ground lease for site-wide infrastructure improvements, various vertical ground lease(s) for proposed building use types, and a master rent administration agreement.

The project will be developed in multiple phases over many years. Demolition of the current Pechanga Arena will not take place until the new entertainment center is fully built and ready to open, ensuring there will be no gap in scheduled events.

Since submitting its development proposal, Midway Rising conducted extensive community outreach seeking input and feedback from residents in the Midway-Pacific Highway community and surrounding neighborhoods, and across the rest of the city. More than 70 outreach events and meetings were held, along with community workshops in each Council District.

The Midway Rising team includes affordable housing developer Chelsea Investment Corporation, sports venue developer and operator Legends, market-rate housing developer Zephyr and equity investor The Kroenke Group. Midway Rising has held more than 70 outreach events and meetings, including community workshops in every Council District, to gather input from residents across San Diego.

Of the five proposers seeking to redevelop the Sports Arena site, Midway Rising offered the highest total number of affordable housing units. City staff also recommended selecting Midway Rising based on the team’s collective development experience and financial capabilities. The project has an estimated construction cost exceeding $4.2 billion. If the Land Use and Housing Committee advances the proposed Disposition and Development Agreement (DDA) and Resolution of Intent to Form an Enhanced Infrastructure Financing District (EIFD), both will go before the full City Council for consideration in November.