San Diego committee advances Midway Rising deal, seeks housing revision

San Diego’s Land Use and Housing Committee unanimously advanced the proposed Midway Rising redevelopment agreements on Oct. 16, while seeking revisions to ensure the project’s affordable homes are built for the development rather than counted toward requirements for other projects.

The vote sends the proposal to the full City Council but does not approve construction. The committee also advanced a proposed Enhanced Infrastructure Financing District. Both actions remain subject to further approvals.

Thousands of homes and a new arena proposed i

The site is 48.5 acres of city-owned land in San Diego’s Midway-Pacific Highway Community. The city’s proposal calls for at least 2,000 affordable homes, including at least 200 permanent supportive housing units, alongside 2,254 market-rate homes.

Plans also include an arena of at least 380,000 square feet, with 16,000 seats. The proposal allows the seating capacity to fall to no fewer than 15,200, subject to ticket-charge adjustments. It includes up to 130,000 square feet of retail and commercial space, 8.2 acres of parks and 6.42 acres of public space. The city lists up to 6,500 additional square feet of retail or commercial space as possible with City approval.

A city staff report estimates total construction costs at $4.223 billion. That is a project estimate, not an established City expenditure. Under the proposed framework, initial construction would be privately financed, with later phases dependent on permits, financing and other conditions. The agreements would set up a long-term lease and phased redevelopment of the city-owned property.

Housing terms and infrastructure financing remain open i

Times of San Diego reported that committee members wanted revisions clarifying that the 2,000 affordable homes would be produced for Midway Rising, rather than credited as “receiver” units for other developments. That is a requested change, not a final Council-approved term.

The proposed financing district would use future property-tax increment revenue to help reimburse eligible infrastructure costs. Times of San Diego, citing the Independent Budget Analyst, reported an estimate of $460 million in developer infrastructure spending and potential reimbursement of up to $378 million. The reimbursement is not guaranteed, and the district requires further approvals, including later county consideration.

About 50 residents and other speakers addressed the committee, according to Times of San Diego. Supporters emphasized housing and jobs; opponents raised environmental hazards, possible flooding and concerns about the City’s past real-estate deals.

The City said full Council consideration was expected in early November. The existing arena would not be demolished until the proposed replacement entertainment center is built and ready to open. Until Council action and other required approvals, the proposed homes, arena and infrastructure work are not authorized to proceed.