Midway Rising, the professional team master planning the new housing and entertainment center to replace Pechanga Arena, recently visited both the Midway-Pacific Highway Community Planning Group and the City Council to update both on the status of the long-term project.
The Midway Rising group, which includes Zephyr, Legends, and Chelsea Investment Corp., entered into an exclusive negotiating agreement with the City in September 2022 to redevelop the 48-acre former Sports Arena site in the Midway District. Their redevelopment objective is to deliver new affordable homes and a brand new sports arena, as well as retail and park space upgrading the neighborhood.
Jim Andersen of Chelsea Investment Corp., and Shelby Jordan of Legends, which develops regional sports and entertainment facilities, clued MPHCPG in on the status of the project in January.
“We were one of several teams competing to redevelop the Sports Arena’s 48 acres and we were chosen as the preferred developer,” said Jordan, adding they’re planning to replace the old Sports Arena with a brand new 16,000-seat facility. “We’re going to keep the existing Sports Arena up and running while the new arena is under construction. Then we’re going to demolish the old arena and develop housing there,” he said.
“This project is being done under the (state) Surplus Lands Act that requires a minimum of 25% affordable housing,” said Andersen pointing out Pechanga’s redevelopment is “the largest single affordable housing project in the history of California, and something Californians need desperately.”
Andersen added the game plan now with the Sports Arena redevelopment is “not to create an island,” but rather to ensure that businesses involved “survive and thrive to make the whole neighborhood better.”
Midway Rising noted their original planning for the redevelopment has changed as a proposed hotel has fallen out of their plan.
Jordan added some of the original commercial components of the redevelopment project needed to be “downsized.” He noted Midway Rising is also being sensitive in retail planning to avoid “cannibalizing other businesses in the area.”
On Jan. 22, Midway Rising gave a similar update on the redevelopment to the San Diego City Council. After their presentation, Councilmember Dr. Jennifer Campbell, whose District 2 includes Midway, commented: “I’m pleased that we’ve finalized the analysis of the site. I look forward to the next steps, initiating the environmental impact report and filling out the final plans for Midway Rising. I am so proud that this is in my district and that we still have 2,000 units of affordable housing in the plans.”
Added Campbell: “There have been difficult issues raised by the onsite due diligence and by the overall economic environment. I appreciate that the Midway Rising team continues to do the outreach work to the communities, not only in District 2 but across our entire City.”
But Campbell cautioned, “We have a long way to go from these initial steps to the new arena and a finalized community. We must carefully assess each step along the way. So I look forward to further reports and next steps.”
Midway Rising estimates an eight- to 10-year build-out for the new sports arena once construction commences following completion of permit approval and environmental review. Their team said the new sports arena is planned to be built in the far eastern section of the City-owned property near the Salvation Army Thrift Store & Donation Center at 3240 Sports Arena Blvd.
Regarding timelines, Midway Rising’s reps said the goal now is for the City Council to approve environmental studies for the project by the “end of this year” with phased construction to begin sometime in 2025.
