SAN DIEGO (CNS) - The next major hurdle for the Midway Rising project — intended to transform the 49-acre Sports Arena site in the Midway district — will arise Thursday as the San Diego Planning Commission holds a public hearing on the development.
At the end of the commission meeting, the seven-person body will either recommend the San Diego City Council approve or deny the project. If approved, Midway Rising could break ground next year.
"This project is on track to completely revitalize the Midway District by adding an upgraded new sports arena in addition to over 4,000 new homes, nearly half of which will be affordable housing," said City Councilwoman Jennifer Campbell, who represents the Midway District. "In the state of California, we have yet to see an affordable housing development of this magnitude, and I am proud that San Diego will be the first to build a project of this scale."
The proposed project will allow the developers -- housing developer Chelsea Investment Corporation, sports venue developer and operator Legends, market-rate housing developer Zephyr and equity investor The Kroenke Group -- to construct 4,254 housing units, including 2,000 affordable units, 8.12 acres of public parks and 6.42 acres of public space, a 16,000 seat, multi-purpose Entertainment Center, and 130,000 square feet of commercial space.
The affordable apartments would be dedicated to households earning 80% of the area median income or below. A family of four with an annual household income of up to $132,400 would qualify to rent an affordable home for 30% of their annual income.
As for the legendary but 59-year-old Sports Arena, now known as Pechanga Arena, it would be replaced with the entertainment center and seat 2,000 more people than the current structure, according to the developers.
Additionally, sustainable features for all buildings are part of the proposal, as well as infrastructure improvements on- and off-site, including roadways, bike paths and transit facilities.
"The economic potential of redeveloping this site is tremendous," said Economic Development Director Christina Bibler. "This project will generate thousands of jobs, significantly boost local revenue and unlock the value of underutilized city-owned land. By creating such a large volume of new housing opportunities -- especially affordable homes -- we're not only addressing a critical need but also laying the foundation for long-term neighborhood economic vitality.
"Revitalizing this area, which hasn't seen major investment since the 1960s, will create a sustainable economic engine for generations to come."
The road to this point started in 2021, when the city council declared the site surplus land and requested proposals to redevelop the area. A total of five proposals deemed good faith came in, and a competitive selection process began. Those five were shortlisted to three by the city in agreement with the state's Department of Housing and Community Development. In 2022, the council selected Midway Rising, which offered the highest total number of affordable housing units.
Since then, the proposal has been fine-tuned to meet city council standards and the developers have conducted an environmental analysis under the California Environmental Quality Act -- along with workshops in all nine of the city's council districts.
During Thursday's meeting, the Planning Commission will consider the land use entitlements for the project, while real estate negotiations with the development team, including the lease for the City land, are nearing completion.
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