Two state bills designed to insulate the Midway Rising mega project from legal challenges linked to California\u2019s environmental law received their final legislative approval and are headed to Gov. Gavin Newsom\u2019s desk.<\/p>\n
Senate Bill 958 and Senate Bill 344 \u2014 authored by state Sen. Akilah Weber Pierson, D-La Mesa, and sponsored by San Diego Mayor Todd Gloria \u2014 completed their trips through the state Legislature on Sunday, both passing 40 to 0 in the Senate, with the original chamber accepting bill amendments from the Assembly.<\/p>\n
If signed into law by the governor, SB 958<\/a> would prevent increased building heights from being considered significant impacts under California\u2019s Environmental Quality Act, or CEQA. It was originally written for Midway Rising, but was later amended to apply more broadly to all non-industrial, infill projects with a certified environmental impact report.<\/p>\n SB 344<\/a> is a special statute specific to Midway Rising and establishes that the project, upon certification of its environmental impact report, will have fully satisfied the requirements of the state\u2019s environmental law. The bill surfaced in the final stretch<\/a> of the state Legislature\u2019s regular session and includes an urgency clause, meaning its protections will take effect immediately if signed into law.<\/p>\n \u201c(The bills) provide greater certainty under California\u2019s environmental laws while preserving meaningful environmental protections and public review. Together, these bills will help prevent unnecessary litigation and years of delay from standing in the way of housing and infill development that has already undergone an extensive public planning process,\u201d Gloria said in a statement. \u201cI urge Governor Newsom to sign SB 958 and SB 344 into law so we can turn years of planning into real progress \u2014 and get to work building the homes, infrastructure and vibrant community San Diegans deserve.\u201d<\/p>\n The mayor\u2019s victory in the Legislature comes as the city and the Midway Rising development team prepare to wrap up a four-year negotiation period with a long-term ground lease for the city\u2019s real estate at 3220, 3240, 3250 and 3500 Sports Arena Blvd. in the Midway District. The proposed real estate terms for the development deal are expected to be discussed publicly for the first time at a City Council committee on Oct. 8.<\/p>\n San Diego City Council members first selected the Midway Rising development team to lease and redevelop the sports arena property in September 2022. The team is composed of market-rate housing developer Zephyr, affordable housing builder Chelsea Investment Corp., and sports-and-entertainment venue operator Legends. The Kroenke Group, a subsidiary of billionaire Stan Kroenke\u2019s real estate firm, is the entity\u2019s lead investor and limited partner.<\/p>\n The development plan for the 49.2-acre property, or what\u2019s known as the Midway Rising Specific Plan, calls for 4,254 total residential units, a 16,000-seat replacement arena, 130,000 square feet of commercial space, 8.1 acres of parks, and an additional 6.4 acres of plazas and public space. It memorializes the team\u2019s commitment to build 2,000 residential units for households earning 80% or less of the area median income, or what\u2019s considered affordable housing.<\/p>\n The city of San Diego completed an environmental analysis of the specific plan, or what\u2019s called the final subsequent environmental impact report, or FSEIR. The plan allows for a 250-foot residential building, 105-foot mixed-use buildings and a 165-foot arena. The analysis is awaiting certification by the City Council, which is expected to occur at the same time the council approves the real estate deal.<\/p>\n SB 344, if signed into law, will help shield the city and Midway Rising from lawsuits claiming that the project\u2019s EIR does not comply with CEQA, according to a bill analysis prepared for the Senate.<\/p>\n \u201cThe purpose of this bill is to essentially state that once the city has certified the EIR, which is generally the last step to CEQA, that it is CEQA compliant,\u201d Weber Pierson said last week at the bill\u2019s hearing in the Assembly Standing Committee on Natural Resources. \u201cIf they end up having to go through another round of litigation, it will help in the court system. It will not prevent people from being able to sue, because people can sue here for anything. But it will hopefully help and not delay it another four, five, 10 years.\u201d<\/p>\n The bill also appears to mark the first time the state Legislature has declared a specific project to be fully compliant with CEQA, which gave pause to Assemblymember Al Muratsuchi, D-Torrance, at the committee hearing.<\/p>\n Muratsuchi, who did not vote on the bill at the hearing or during the Assembly vote, said he was concerned that the state\u2019s legislative process was being used for something that should be left to the courts.<\/p>\n The Assembly member whose district includes the project area expressed a similar sentiment on social media.<\/p>\n