Now that Stan Kroenke, the billionaire owner of the Los Angeles Rams and other major sports franchises, has joined Midway Rising as the lead investor in the former Sports Arena’s redevelopment, how will that impact the long-term project?

Little or no effect, claim both the City and developers, other than supporting ongoing efforts to successfully plan and finance a new modern, state-of-the-art 16,000-seat arena at 3500 Sports Arena Blvd.

“The addition of the Kroenke Group is as an equity investor and limited partner in Midway Rising,” said Tara Lewis, supervising PIO for the City’s Communications Department. “The addition of the Kroenke Group to the Midway Rising team does not change the terms of the City’s Exclusive Negotiation Agreement with Midway Rising that requires the proposed development to include certain elements, at a minimum, including ‘replacement of the existing Sports Arena located on the site.’ While the investment of equity into the project at this early phase significantly de-risks the project, it does not change the terms of the ENA, or the City’s approach to moving forward with the project.”

“The Kroenke Group is a leading national, privately held real estate developer, investor and property manager, with deep-rooted sports venue development and management experience, and the company’s involvement in the Midway Rising redevelopment project represents an exciting opportunity to grow its investment in San Diego and the greater Southern California region,” said Midway Rising Project Team spokesperson Jeff Meyer. “From a development standpoint, no aspects or details of the team’s project vision have changed. Day-to-day redevelopment operations will continue to be managed by the existing Midway Rising team partners – Zephyr Partners, Legends, and Chelsea Investment Corporation.”

“This project will have 2,000 affordable units and provide 8,500 jobs, many of them in construction, as well as having 20 acres of parks accessible to the public along with providing $7 billion in economic benefits to the region,” said Jim Andersen, chief development officer for Chelsea Investment Corp. at a February workshop. Anderson noted the housing element of the revamped site will have a total of 4,250 dwellings. Of those, he said 2,000 will be affordable units for those qualifying who make 30% to 80% of median County income. He added there will also be housing provided for families and veterans, as well as permanent supportive housing, to serve the unsheltered.

Midway Rising’s plans call for a projected 10-year build-out, with an anticipated groundbreaking in 2025, of a modern, state-of-the-art 16,000-seat arena as the anchor for a new, year-round entertainment district.

“Our team’s arena developer and operator, Legends, has a long track record of delivering dynamic and vibrant mixed-use districts, such as SoFi Stadium in Los Angeles and The Star District in Dallas,” said Meyer. “A modern arena will allow us to attract national events, such as the NCAA regional basketball or hockey tournaments, combat sports such as the UFC, or Professional Fighters League, and other exciting opportunities like the Academy of Country Music Awards. The proposed arena will be a flexible, multipurpose venue, capable of accommodating a variety of events while also providing future expansion opportunities.

Meanwhile, critics of the redevelopment, who oppose further densification in the area, as well as the lifting of Midway District’s 30-foot height limit accomplished by a recent voter referendum, won a recent court battle.

California’s Fourth District Court of Appeal has upheld a San Diego Superior Court judge’s earlier decision to invalidate the 2020 ballot measure that sought to lift the 30-foot height limit in the Midway District. The lower court ruled that the city did not properly analyze the environmental impacts of buildings taller than 30 feet, in violation of the California Environmental Quality Act.

The appeals court decision does not apply to the do-over ballot measure, or Measure C, which passed in November 2022 with 51 percent approval and is also being contested in court.

“The mayor and council have been determined to mislead the public in order to give away our prime coastal public land to their campaign contributors with the effect of blockading citizen’s access to the coast,” said John McNab, founder of Save Our Access, the plaintiff in the case. “Today the people won a major victory.”

KROENKE BIOGRAPHY

Born in 1947, Enos Stanley Kroenke is an American billionaire businessman and the owner of Kroenke Sports & Entertainment, which is the holding company of numerous major league sports franchises including the Los Angeles Rams, Denver Nuggets, and Colorado Rockies. The Nuggets and Avalanche franchises are held in the name of Kroenke’s wife, Ann Walton Kroenke, who is the daughter of Walmart co-founder James “Bud” Walton.

In 1983, Kroenke founded the Kroenke Group, a real estate development firm that has built shopping centers and apartment buildings. He has developed many of his plazas near Walmart stores. Kroenke is also the chairman of THF Realty, an independent real estate development company that specializes in suburban development. In 2016, THF’s portfolio was valued at more than $2 billion, including more than 100 projects totaling 20 million square feet, primarily in retail shopping centers.

In 1995, Kroenke helped Georgia Frontiere move the Los Angeles Rams from Anaheim to St. Louis by purchasing a 30% share of the team. In 2010, he became full owner of the Rams by unanimous consent of the NFL. In January 2015, the Kroenke Group built a 70,000-seat NFL stadium and venue in Inglewood, a suburb of Los Angeles On Jan. 12, 2016, the NFL approved the Rams’ application to relocate from St. Louis back to Los Angeles with a 30-2 vote.