‘Failure Not an Option’: Gloria vows to press on after court setback on Midway Rising

Despite a Court of Appeals ruling once again denying the city of San Diego the ability to lift a 30-foot height limit in the Midway District, Mayor Todd Gloria said Monday the fight wasn’t over.

In a ruling issued Friday, the 4th District Court of Appeal determined the city hadn’t done its due diligence in completing an environmental study on the plan to raise the height limit in the neighborhood — part of an effort to greenlight the nearly $4 billion Midway Rising project.

This is the second time a court has overturned a voter-approved ballot measure to lift the coastal 30-foot limit for new construction in the area on a procedural technicality. San Diego’s voters approved “Measure E” to raise the limit in 2020 by a 13-point margin, 56.6% to 43.4%.

“The city attorney and I disagree strongly with this ruling and will be asking the City Council to appeal it to the California Supreme Court,” Gloria said Monday in a statement. “In addition to the appeal, city staff have identified multiple paths to keep the redevelopment of the city’s sports arena property moving forward.

“I will not allow San Diego to miss out on an opportunity that holds massive benefits for San Diegans, including thousands of permanent new jobs, affordable homes, a new entertainment center and billions in economic activity. Failure is simply not an option, and we will get this done.”

As a result of the ruling, Gloria on Monday also extended the exclusive negotiating agreement with Midway Rising project leaders to give more time for council review of the project. That review had been scheduled for later this year, but the extended deadline is now Dec. 4, 2026.

The ruling comes just weeks after the project cleared a major hurdle by getting San Diego Planning Commission approval.

As proposed, Midway Rising would allow the developers — housing developer Chelsea Investment Corporation, sports venue developer and operator Legends, market-rate housing developer Zephyr and equity investor The Kroenke Group — to construct 4,254 housing units, including 2,000 affordable units, 8.12 acres of public parks and 6.42 acres of public space, a 16,000 seat, multi-purpose Entertainment Center, and 130,000 square feet of commercial space.

The affordable apartments would be dedicated to households earning 80% of the area median income or below. A family of four with an annual household income of up to $132,400 would qualify to rent an affordable home for 30% of their annual income.

As for the legendary but 59-year-old Sports Arena, now known as Pechanga Arena, it would be replaced with the entertainment center and seat 2,000 more people than the current structure, according to the developers.

Additionally, sustainable features for all buildings are part of the proposal, as well as infrastructure improvements on- and off-site, including roadways, bike paths and transit facilities.

“The economic potential of redeveloping this site is tremendous,” said Economic Development Director Christina Bibler in September. “This project will generate thousands of jobs, significantly boost local revenue and unlock the value of underutilized city-owned land. By creating such a large volume of new housing opportunities — especially affordable homes — we’re not only addressing a critical need but also laying the foundation for long-term neighborhood economic vitality.

“Revitalizing this area, which hasn’t seen major investment since the 1960s, will create a sustainable economic engine for generations to come.”

The road to this point started in 2021, when the city council declared the site surplus land and requested proposals to redevelop the area. A total of five proposals deemed good faith came in, and a competitive selection process began. Those five were shortlisted to three by the city in agreement with the state’s Department of Housing and Community Development. In 2022, the council selected Midway Rising, which offered the highest total number of affordable housing units.