The cost to construct the new public amenities will be fronted by the developer and bring an estimated $460 million in value for San Diegans and come at no upfront cost to the City. The Midway Rising development team plans to use considerable private capital investment to construct the site and fully improve the adjacent public spaces.
“The opportunity to transform this site carries catalytic economic promise,” said Economic Development Director Christina Bibler. “This project will create thousands of jobs, generate substantial new local revenue and unlock the potential of long-underused City-owned land. By delivering a significant number of new homes — particularly affordable options — we are not only addressing a critical community need but also setting the stage for long-term economic vibrancy in the neighborhood. Revitalizing an area that has gone without major investment since the 1960s will establish a sustainable economic engine that benefits San Diegans for generations.”
Rather than a single agreement with Midway Rising for the entire redevelopment, the City’s Economic Development Department is proposing a combination of leases and transactions to establish legal, financial and operational requirements that provide the City with long-term oversight and protections to ensure obligations and milestones are met. These real estate agreements include the DDA, a horizontal ground lease for site-wide infrastructure improvements, various vertical ground lease(s) for proposed building use types, and a master rent administration agreement.
The project will be developed in multiple phases over many years. Demolition of the current Pechanga Arena will not take place until the new entertainment center is fully built and ready to open, ensuring there will be no gap in scheduled events.
Since submitting its development proposal, Midway Rising conducted extensive community outreach seeking input and feedback from residents in the Midway-Pacific Highway community and surrounding neighborhoods, and across the rest of the city. More than 70 outreach events and meetings were held, along with community workshops in each Council District.
The Midway Rising team includes affordable housing developer Chelsea Investment Corporation, sports venue developer and operator Legends, market-rate housing developer Zephyr and equity investor The Kroenke Group. Midway Rising has held more than 70 outreach events and meetings, including community workshops in every Council District, to gather input from residents across San Diego.
Of the five proposers seeking to redevelop the Sports Arena site, Midway Rising offered the highest total number of affordable housing units. City staff also recommended selecting Midway Rising based on the team’s collective development experience and financial capabilities. The project has an estimated construction cost exceeding $4.2 billion. If the Land Use and Housing Committee advances the proposed Disposition and Development Agreement (DDA) and Resolution of Intent to Form an Enhanced Infrastructure Financing District (EIFD), both will go before the full City Council for consideration in November.