In a real estate race to lease and redo the City of San Diego’s 48-acre sports arena site, San Diego chose the winning development team to propose the most affordable residential units.
On Tuesday, city council members voted 7 to 1 to elect Midway Rising. The vote came after a sometimes heated debate that put the team, its partners, and potential subcontractors under the microscope on various topics, including allegations of deceptive labor practices.
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San Diego Mayor Todd Gloria said in a statement, “Today’s approval revitalizes the Midway neighborhood with much-needed, affordable housing, along with world-class entertainment and community amenities. “The Midway Rising team not only has the most compelling vision for reusing the site, but also has the experience and funding to execute it. I have.”
The council’s decision ends a nearly year-long contest and begins a new phase in efforts to reshape the Midway estate. The city and team will take about two years to hammer out the terms of the lease and development once an exclusive negotiation deal is signed, with staff providing quarterly updates to Congress and an independent budget analyst’s office. should be included in the discussion.
Midway Rising includes market-rate housing developer Zephyr, sports and entertainment operator Legends, and affordable home builder Chelsea Investment Corp. Affordable and low-income families averaged 48% of the regional median income.
The group’s plans also call for 250 middle-income residents, 2,000 market-price units, a new 16,000-seat arena, a 200-room hotel, and 4,500 parking spaces. The project includes 20 acres of open space and park space, including a 4.2-acre rooftop park.
“The Midway Rising team is grateful to the San Diego City Council for voting to move forward on the recommendation of Mayor Gloria and city officials,” said Bill Roda, project development executive at Legend. increase. “We are building a comprehensive and affordable community that includes 2,000 affordable homes, 20+ acres of new parks, 8,500 jobs for working families, and a modern sports arena for all San Diegans. We are committed to providing an economically vibrant community at an affordable price.”
This is San Diego’s second attempt to offload a sports arena site. The first attempt ran counter to California’s newly revised Surplus Land Law. The law is designed to maximize affordable housing on land no longer needed by local governments. Local agencies should give “first priority” to bidders proposing the maximum number of deed-restricted housing units for families earning her 80% or less of the regional median income.
“Resuming the previous administration’s sports arena process was a setback for the city, but today’s selection of the Midway Rising Team is a revitalized city where the San Diegans can live, work and play for decades to come. It’s a monumental step forward for the Midway area,” said Penny Mouse, head of the city’s real estate department.
The current real estate race began in earnest in October, when the city put Midway properties back on the market with a “notice of availability” mandated by law.
San Diego received seven responses during the required 60-day notice period, two of which were deemed non-responses. In December, the city began a 90-day “good faith” negotiation period with five remaining teams.In May, a member of the city council split the candidate field into his three teams: Midway Rising, HomeTownSD and Midway Village+. Narrowed down.
The real estate department then entered the due diligence phase, using JLL to scrutinize the team’s financial model and capabilities. Last month, Midway Rising was shortlisted by staff and the mayor.
This story is a work in progress.
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