Development team Midway Rising is engaged in negotiations with the City of San Diego to secure a short-term lease for the existing Pechanga Arena. This lease agreement will allow the group to take over the management of Pechanga Arena San Diego after the expiration of the City’s current contract with ASM Global, according to the San Diego Union Tribune, which first reported on the story. The transition to Midway Rising comes as part of an ambitious plan to revitalize the 48-acre site, with the aim of creating a new state-of-the-art venue and a larger mixed-use development.
The City of San Diego, through its real estate department headed by Penny Maus, is currently in discussions with Midway Rising regarding the terms of a short-term lease agreement. While the proposed lease terms have not been disclosed due to ongoing negotiations, the agreement will become a public record upon finalization. Importantly, the contract does not require approval from the City Council. Legends, a sports-and-entertainment venue operator, is expected to assume management responsibilities once the current contract with ASM Global expires next summer.
Midway Rising has been chosen by the San Diego City Council to lead the redevelopment of the property located at 3220, 3240, 3250 and 3500 Sports Arena Blvd. The development team comprises Legends, market-rate housing developer Zephyr and affordable housing developer Chelsea Investment Corp. The project’s funding will largely be provided by The Kroenke Group, which recently acquired a 90 percent ownership interest in the project. The ambitious redevelopment plan includes 4,250 residential units, a new 16,000-seat arena, a 200-room hotel, 250,000 square feet of commercial space and 20 acres of plaza and park space.
The City and Midway Rising are currently in a two-year negotiation period, which is expected to conclude in late 2024, leading to a long-term ground lease and development deal for the site. Construction is projected to commence around 2026, pending the successful acquisition of permits. During this interim period, Legends will oversee the operations of the current facility to ensure uninterrupted services.
Legends, a renowned entertainment company with ownership ties to the Dallas Cowboys and the New York Yankees, is poised to assume the management of Pechanga Arena. The company also oversaw the construction of SoFi Stadium in Inglewood. Locally, Legends has also been contracted to handle partnerships, premium seating, and season ticket sales for San Diego’s Major League Soccer club.
ASM Global, a subsidiary of AEG, has been the longstanding operator of the 57-year-old facility in the Midway District since 2008. The company’s lease agreement, which began on Aug. 1, 2021, is set to expire on July 31, 2024. ASM Global shares a percentage of revenue from parking, naming-rights deals, and other business activities with the City. Additionally, the company pays the City $1 for each ticket sold for concerts and non-tenant events. Despite ASM’s hopes for a long-term presence, the company’s partnership with home developer Brookfield Properties on a sports arena site proposal did not progress far in the city’s real estate competition.
