San Diego’s much-anticipated Midway Rising sports arena project is progressing, but final approval is not expected until early 2025. This update comes following an information session by Christina Bibler, head of the city’s real estate division, on the current status and upcoming steps.
San Diego City Council members received an update on the project in June, according to a report in The San Diego Union-Tribune. Bibler highlighted a delay in hiring a consultant to evaluate the formation of a tax increment financing district (TIFD), which is essential for financing public facilities related to the project. Despite this, she remains optimistic about achieving significant milestones by the end of the year.
“We’re still hopeful we can accomplish a lot by the end of this calendar year, but [we’re] looking to maybe adjust (the timeline) into 2025 — maybe the early part of 2025 for any final votes,” Bibler was quoted in the report.
The development team includes Zephyr, which specializes in market-rate housing, Chelsea Investment Corp., known for building affordable housing, and Legends, an operator of sports and entertainment venues. The Kroenke Group, a subsidiary of billionaire Stan Kroenke’s real estate firm, serves as the lead investor and limited partner for the project. Negotiations between the city and the development team have been ongoing for over 18 months. The team was selected to redevelop the city’s sports arena property at 3220, 3240, 3250, and 3500 Sports Arena Blvd.
Their plan includes:
- 4,250 residential units
- A 16,000-seat replacement arena
- 130,000 square feet of commercial space
- Public parks, plazas, and open spaces
Importantly, the project promises 2,000 units for low-income households earning 80 percent or less of the area median income. This affordable housing commitment is a cornerstone of the development proposal but relies heavily on financial support from state and federal subsidies.
The proposed Enhanced Infrastructure Financing District (EIFD) is a critical component to make the project financially viable. EIFDs capture property tax revenue growth within a designated area to fund public infrastructure. The boundaries of this district are still under discussion, with some community members advocating for a broader inclusion of the Midway area.
The city’s evaluation of the EIFD plan has been delayed pending the finalization of a consultant’s contract, which is now underway. Bibler expects to present a resolution to form the EIFD by year-end.
For the project to move forward, the City Council must agree on lease and development terms. Additionally, council members have voiced a need for the project to include 250 units for middle-income families, a component initially promised but later deemed infeasible by the developers due to market shifts.
Councilmember Sean Elo-Rivera stressed the importance of delivering on promises made during the project’s selection, indicating that benefits equivalent to the original proposal must be provided if adjustments are made.
The council also needs to certify the final environmental impact report for the Midway Rising Specific Plan, which includes both the project site and additional parcels on Kurtz Street. This draft analysis is still pending.
