City Releases Midway Rising Deal Terms Ahead of Oct. 16 Committee Vote
The City of San Diego on Monday, Oct. 12, 2026, released the proposed real estate agreements for Midway Rising, the planned redevelopment of the 48.5-acre Sports Arena site in the Midway District next to Point Loma. The package centers on a Disposition and Development Agreement, or DDA, between the city and Midway Rising, LLC. The city said the DDA and a resolution of intent to form an Enhanced Infrastructure Financing District will go to the City Council's Land Use and Housing Committee on Friday, Oct. 16, for a recommendation to the full council, which is expected to consider it in November.
What the deal includes
According to the city, the plan includes at least 2,000 affordable homes with average affordability not above 60% of Area Median Income, including at least 200 permanent supportive housing units, plus about 2,250 market-rate apartments. The city's Independent Budget Analyst lists 2,254 market-rate units, for 4,254 homes in all. The plan also calls for a 16,000-seat entertainment center to replace Pechanga Arena, 14.5 acres of parks and public spaces, and about 130,000 square feet of shops and restaurants. The city said the arena would not be torn down until the new venue is ready to open. The estimated construction cost is more than $4.2 billion.
Times of San Diego reported the DDA includes $548 million for the affordable units, $520 million for the arena, and $400 million for streets, parks, and pedestrian improvements. The city said the developer would front the cost of public amenities valued at about $460 million at no upfront cost to the city. Instead of a single contract, the city is proposing a set of agreements, including a horizontal ground lease for site-wide infrastructure, vertical ground leases for buildings, and a master rent administration agreement, with the city keeping ownership of the land.
The budget analyst's view and the opposition
The Independent Budget Analyst concluded the deal represents a fair and reasonable transaction for the city. KPBS reported the IBA estimated the city could receive about $884 million to $1.23 billion in ticket fees and rent over the roughly 105-year life of the agreements. Timelines differ by source: the IBA estimated about 20 years for full buildout, while KPBS reported the development team expects to break ground by early 2028 and build over 10 to 15 years. Save Our Access, which has sued over the project before, still opposes it, KPBS reported.
Why it matters
- Thousands of new rental homes next to Point Loma would be a large supply change for the area, but buildout would take many years.
- The Oct. 16 committee action is a recommendation only. The full City Council vote is the decision that counts.
- Nothing in the agreements creates new for-sale homes, so this is mainly a rental and neighborhood story for nearby owners.
Sources: City of San Diego, Inside San Diego (Oct. 12, 2026); IBA review of the proposed Midway Rising project; Times of San Diego (Oct. 13, 2026); KPBS (Oct. 13, 2026).
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