San Diego will move forward with three of the five teams in the running to lease and remake the city’s 48-acre sports arena site in the Midway District.
Monday, City Council members voted unanimously in favor to continue negotiations with development teams Midway Rising, HomeTownSD and Midway Village+, as recommended by the mayor and the city’s real estate department.
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The decision, which departs from an April vote by the city’s Land Use and Housing Committee, appeared to be primarily based on guidance from California’s Department of Housing and Community Development. The state agency requires the city to prioritize teams with the greatest number of residential units reserved for low-income families, as defined by the recently amended Surplus Land Act.
“It seems clear to me that we want to make sure to avoid the missteps of the past,” said Council President Sean Elo-Rivera.
“The prioritization put forward is aligned with what (HCD’s) expectations are. Any member of the public, or even a member of the council, may take exception to whether or not those are the right priorities, but these are the priorities that HCD has told us that we have to consider,” he said. “Any deviation from the process that they’ve laid out leads us into very, very murky waters.”
With the vote, San Diego will soon begin a deep dive into team financials and project feasibilities, as well as review each developer’s track record. Penny Maus, who heads the city’s real estate department and is leading negotiations, said she expects to bring a recommendation for selection to the council before the end of the year.
At stake is the city-owned real estate at 3220, 3240, 3250 and 3500 Sports Arena Blvd., which has been on and off the market since February 2020. In its second attempt to offload the site, the city’s real estate department is following the Surplus Land Act by the book.
Currently, the Midway Rising proposal from Encinitas-based Zephyr Partners includes the most affordable units offered to the lowest income levels — or 2,000 deed-restricted units with an average affordability of 40 percent of the area median income.
HomeTownSD and Midway Village+ — with 1,726 and 1,610 affordable units, respectively — were also recommended for the short list so that the city could have options as it performs due diligence on the teams.
City Council’s decision to approve the short list came despite objections from community members, some union leaders, and representatives from the two teams that did not make the cut. Public speakers, including Kobey’s Swap Meet Vice President Chuck Pretto, argued that it is premature to cut any teams, especially without understanding how the projects will be financed.
“I have mixed feelings. It’s not the outcome we came here asking for. But I would say, based on what we learned from HCD … I have a lot more confidence in the overall process,” said Dike Anyiwo, who chairs the Midway-Pacific Highway Community Planning Group. “We do eventually have to get down to one group, and this is the process and mechanism by which we get there.”
This story is developing.
