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San Diego City Council approves Midway Rising redevelopment

San Diego City Council approves Midway Rising redevelopment

Built World San Diego, CA local

The 8-0 vote advances a 105-year lease to transform the Midway District with 4,250 homes and a new arena.

Today: Voice of San Diego reports on lease stoppage history

Overview

Updated 1 hour ago

San Diego's Midway District, home to an aging sports arena and acres of parking lots, is set for a $4.2 billion transformation. The City Council voted 8-0 on Monday to approve a 105-year lease with Midway Rising, which plans 4,250 homes—half affordable—and a new 16,000-seat arena.

The project is the largest affordable housing development in California history, but it faces financing hurdles, legal challenges, and concerns about infrastructure. How the city manages those risks will determine whether Midway Rising becomes a model for public land redevelopment or a cautionary tale.

Why it matters

If built, Midway Rising will add 2,000 affordable homes to housing-starved San Diego, but delays could leave the site vacant for years.

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Key Indicators

4,250
Total homes planned
Includes 2,000 affordable units and 2,250 market-rate apartments.
2,000
Affordable homes
At least 200 will be permanent supportive housing.
$4.2B
Estimated construction cost
Private capital investment, with public infrastructure reimbursed via EIFD.
105-year
Lease term
105-year lease with the Midway Rising team.
8-0
City Council vote
Unanimous approval after a seven-hour meeting.

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People Involved

Todd Gloria
Todd Gloria
Mayor of San Diego
In office
 Kevin Faulconer
Kevin Faulconer
Former Mayor of San Diego
Out of office
JC
Jennifer Campbell
San Diego City Councilmember, District 2
In office
KL
Kent Lee
San Diego City Councilmember, Chair of Land Use and Housing Committee
In office
 Stan Kroenke
Stan Kroenke
Billionaire investor, The Kroenke Group
Equity investor in Midway Rising
 Sean Elo-Rivera
Sean Elo-Rivera
San Diego City Councilmember, District 9
In office

Organizations Involved

City of San Diego
City of San Diego
Municipal government
Landowner and project approver

The city government that owns the 48.5-acre Midway site and approved the lease.
MR
Midway Rising
Development Team
Selected developer

A development team selected to redevelop the Midway District with housing, an arena, and commercial space.
SD
San Diego City Council
Legislative body
Approved the project

The nine-member council that voted 8-0 to approve the Midway Rising lease.
California Supreme Court
California Supreme Court
State Supreme Court
Declined to hear appeal

The state's highest court, which in January 2026 declined to hear the city's appeal on a height-limit exemption.
SD
San Diego Regional Chamber of Commerce
Business Association
Supported the project

A business advocacy group that championed the Midway Rising project.

Timeline

January 2017 November 2026

7 events Latest: Today
Tap a bar to jump to that date

  1. Voice of San Diego reports on lease stoppage history

    Today Media

    Voice of San Diego reports on the city's 2017 decision to stop signing long-term leases in Midway.

  2. City Council approves Midway Rising 8-0

    Legislative

    After a seven-hour meeting, the council approves a 105-year lease for the $4.2 billion project.

  3. Committee advances Midway Rising to full council

    Legislative

    The Land Use and Housing Committee unanimously approves the proposal, sending it to the full City Council.

  4. California Supreme Court declines to hear height-limit appeal

    Legal

    Court leaves in place ruling blocking height-limit exemption, forcing the city to adjust approvals.

  5. Kroenke Group joins as equity investor

    Business

    The Kroenke Group, owned by billionaire Stan Kroenke, becomes an equity investor in the Midway Rising team.

  6. Midway Rising selected for redevelopment

    Decision

    The city selects Midway Rising from five proposals, citing its plan for the most affordable homes.

  7. City stops signing long-term leases in Midway

    Policy

    San Diego stops signing new long-term leases around the Sports Arena under Mayor Kevin Faulconer.

Scenarios

1

Midway Rising breaks ground on first phase

Likely Resolves by End of 2027

Discussed by: City officials and project developers

The city issues building permits and construction begins on the first phase of housing and infrastructure. This scenario requires the developer to secure financing and complete environmental reviews without major delays.

2

Lawsuit halts Midway Rising construction

Possible Resolves by Q2 2027

Discussed by: Opponents and legal analysts

A group files a lawsuit challenging the project's environmental review or height-limit approvals, leading to an injunction that stops construction. This could delay the project for years.

3

Midway Rising scales back affordable units

Possible Resolves by End of 2028

Discussed by: Housing advocates and city officials

Citing rising costs or financing gaps, the developer requests approval to reduce the number of affordable units below 2,000. The city council would have to approve the change.

4

Project financing collapses, Midway Rising withdraws

Unlikely Resolves by End of 2027

Discussed by: Financial analysts and city officials

The developer fails to secure the necessary private capital, and the project stalls or the team withdraws. The city would have to find a new developer or restart the process.

Historical Context

3 moments from history that rhyme with this story — and how they unfolded.

2004

Petco Park redevelopment (2004)

San Diego built a downtown ballpark with a mix of public and private funds, sparking billions in private development in the East Village. The project faced lawsuits and delays but ultimately transformed a blighted area.

Then

The ballpark opened in 2004, and surrounding development followed slowly.

Now

East Village became one of San Diego's fastest-growing neighborhoods, with thousands of new homes and businesses.

Why this matters now

Like Midway Rising, Petco Park used public land and a sports venue to anchor a larger redevelopment, showing both the potential and the risks of such projects.

2016

Chargers stadium proposal (2016)

San Diego voters rejected a ballot measure to raise hotel taxes to fund a new downtown stadium for the Chargers. The team subsequently moved to Los Angeles.

Then

The Chargers left San Diego, and the stadium site remained undeveloped.

Now

The failure highlighted the political difficulty of using public money for sports venues and delayed redevelopment of the site.

Why this matters now

Midway Rising avoids direct public subsidy for the arena, relying on private investment and future tax revenue, but it still faces political and legal hurdles.

2020s

Oakland Coliseum redevelopment (2020s)

Oakland has been trying to redevelop the Coliseum site with housing, a new stadium, and commercial space. The project has faced financing challenges and political disputes.

Then

Progress has been slow, with multiple developer changes and delays.

Now

The site remains largely undeveloped, illustrating the difficulty of executing large-scale public land projects.

Why this matters now

Midway Rising faces similar risks: financing, political consensus, and legal challenges could delay or derail the project.

Sources

(4)
Voice of San Diego NBC 7 San Diego Inside San Diego City of San Diego