Midway Rising, the development team granted exclusive negotiating rights by the City to re-imagine the 48-acre former Sports Arena site’s redevelopment, just completed a second public workshop on May 18. That workshop appraised local residents of the redevelopment team’s current plans while soliciting public input.

The Peninsula Beacon conducted a Q&A after Midway Rising’s most recent workshop, to bring everyone up to speed on the project as it stands today.

Faro: What has changed since your last workshop in February about the Sports Arena redevelopment?

Ascenso a mitad de camino: Since our first workshop back in early February, our team has been busy conducting physical site due diligence of the Sports Arena. Due diligence is an important component of this redevelopment project because it allows us to better understand the various characteristics of the site as it stands today, such as existing infrastructure or geotechnical constraints. This work will help us shape a project description based on our vision and the initial proposal we submitted to the City. Site due diligence is expected to be complete in early summer 2023.

Faro: Where is the project now in the pipeline?

Ascenso a mitad de camino: In accordance with our Exclusive Negotiation Agreement with the City, our team is currently wrapping up physical site due diligence. In mid-summer, our team will provide the City with an updated and comprehensive financial feasibility analysis, pro forma, and financing plan to lay the foundation for our team’s project description in fall 2023.

Faro: What are the next steps in the approval process?

Ascenso a mitad de camino: With the City’s sign-off of our updated and comprehensive financial feasibility analysis, pro forma, and financing plan, we will be ready to proceed with our next ENA milestone in developing a project description for the CEQA environmental analysis. The CEQA environmental study and review period will occur in 2024.

Faro: Can you tell us something more about the plans for the site?

Ascenso a mitad de camino: Our plans call for a modern, state-of-the-art 16,000-seat arena as the anchor for a new entertainment district that would be open 365 days a year for all San Diegans. 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. 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. At this time, there are no plans to bring a professional NBA or NHL sports team to San Diego. However, the proposed arena will be a flexible, multipurpose venue, capable of accommodating a variety of events while also providing future expansion opportunities should the San Diego region attract the interest of the NBA, WNBA, and NHL.

Faro: Once the project’s design gets approved, then you have to go through an environmental review, correct?

Ascenso a mitad de camino: Correct. After submission of our updated and comprehensive financial feasibility analysis, pro forma, and financing plan, we will prepare a project description for the CEQA environmental analysis in fall 2023. The CEQA environmental study and review period will occur in 2024.

Faro: When will your plans for the redevelopment finally be approved/disapproved, and which legislative body will make that decision?

Ascenso a mitad de camino: Following the CEQA environmental analysis and review period, we anticipate going before the San Diego City Council in late 2024 to secure the final approval of a long-term ground lease.

Faro: How would you answer critics who say Sports Arena redevelopment will be “delayed to death” and will never come to fruition?

Ascenso a mitad de camino: San Diegans can rest assured that our team is working hand-in-hand with the City and Midway community to meet every milestone outlined in our ENA so that we can expedite the delivery of thousands of new affordable homes, a state-of-the-art arena and a dynamic, mixed-use entertainment district to San Diego.

Faro: How will this project be phased in?

Ascenso a mitad de camino: Our plans outline five separate construction phases over a projected 10-year build-out, with an anticipated groundbreaking in 2025. Starting in the very first phase of construction, our schedule is to deliver 300 to 500 units of affordable housing every two years. Additionally, we will begin immediately constructing the modern, 16,000-seat arena while the existing Sports Arena remains open and operational. This will allow for continued sports and entertainment events and resulting revenues for the City during the initial phase of construction. These details are subject to change once site due diligence is completed.

Faro: How would you answer criticism that the affordable housing component for this project will not be truly affordable?

Ascenso a mitad de camino: Our proposal includes 2,000 affordable units targeted for extremely low- and low-income San Diego families at 30-80% of the Area Median Income, as prioritized by the state’s Surplus Land Act. Affordable housing rent ranges are based on requirements set by the U.S. Department of Housing and Urban Development. Affordable units will be made available to working families, seniors, those with disabilities, veterans, and unsheltered individuals. Here’s a breakdown of bedroom unit types for the 2,000 affordable units included in our proposal: 1-bedroom units (49%), 2-bedroom units (27%), and 3-bedroom units (24%).

Faro: Realistically, when could this project be finished?

Ascenso a mitad de camino: Our plans outline five separate construction phases over a projected 10-year build-out, with an anticipated groundbreaking in 2025. Recognizing our region’s critical need for more affordable homes, our intention is to deliver each phase of construction as quickly as possible.