Midway Rising $4.2 Billion Sports Arena Redevelopment Clears Council Committee Unanimously

The City Council's Land Use and Housing Committee voted unanimously Friday to advance the Midway Rising redevelopment of the Sports Arena site, sending the $4.2 billion proposal to the full Council for a final vote expected in early November.

The project would transform the 48.5-acre city-owned site into what backers describe as the largest affordable housing development in California history, with 2,000 income-restricted units, approximately 2,250 market-rate apartments, a modern 16,000-seat entertainment center to replace the aging Pechanga Arena, and 14.5 acres of parks and public spaces.

The proposal includes a Disposition and Development Agreement establishing the legal framework for redevelopment and plans for an Enhanced Infrastructure Financing District to fund public improvements valued at $460 million — at no upfront cost to the city, according to the mayor's office.

"Transforming the Sports Arena site has been a priority of my administration because San Diego deserves more than an aging arena surrounded by acres of underused land," Mayor Todd Gloria said after the vote.

Committee Chair Kent Lee said the project would prevent the site from becoming "simply an affordable housing receiver site" and stressed the importance of delivering a mixed-income, mixed-use neighborhood.

Councilmember Jennifer Campbell, whose district includes the Midway area, called the vote "long-overdue." "For years, this community has advocated for a revitalized neighborhood with more affordable housing, parks, public spaces, and neighborhood amenities," Campbell said.

The development team — affordable housing developer Chelsea Investment Corporation, sports venue operator Legends, market-rate developer Zephyr, and equity investor The Kroenke Group — plans to use private capital for construction. Demolition of the current arena would not begin until the new entertainment center is built and operational.

The committee vote follows an Independent Budget Analyst report last week that called the project's financial terms "fair and reasonable" and projected the city would net $38 million to $68 million from the 105-year ground lease.