Midway Rising moves to full council for approval, with some changes

Midway Rising, the largest affordable housing project in state history, is headed to the San DIego City Council for final approval in the coming weeks.

On Oct. 16, councilmembers on the Land Use and Housing Committee approved moving the project to redevelop the 48.5-acre city-owned Sports Arena property, with some concerns and changes the committee wants billionaire developer Stan Kroenke to make before the final vote.

Approximately 50 residents, supporters and opponents, spoke during public comment. The supporters praised the project for the number of housing units and the jobs the project brings, while opponents focused on environmental hazards and the site’s potential for flooding. Many also spoke on the city’s past real estate blunders as evidence of a potential bad deal.

The four councilmembers on the committee had their own concerns, and they centered on an excerpt missing from the Development Disposition Agreement, which requires that all 2,000 affordable housing units be built on the site and not included in surrounding projects, as reported by Voice of San Diego.

“One of the key issues that I believe many on the council have noted over time with our vision for Midway, and that I think we just saw reflected in reporting in the last 24 hours, is to ensure that, with the 2,000 affordable housing units that we deliver, the production of new affordable units through this project,” said Councilmember Kent Lee. “So I’ll start by sharing that I strongly believe that it’s in the city’s best interest to ensure that our vision for Midway to produce new affordable units is actually met.”

Lee’s fellow committee members, Sean Elo-Rivera, Vivian Moreno and Stephen Whitburn, agreed and directed staff to look into

Regarding the environmental hazards, Councilmember Elo-Rivera said redeveloping the parcel and getting the infrastructure updates proposed by Kroenke’s team will benefit the entire community.

“The Sports Arena site is basically a fast lane for chemicals and toxins to pollute our rivers, beaches, and bays,” said Elo-Rivera. “What we will have is a modern system that will capture and clean runoff, and will make the entire city healthier. That’s a win, especially from an infrastructure perspective.”

After voting to move the Midway Rising project to the city council for final approval, with the change to the affordable housing requirement, the committee voted in favor of establishing an Enhanced Infrastructure Financing District to reimburse the billionaire developer Kroenke for the new infrastructure.

The infrastructure district uses property tax revenues in a given project area, Midway in this case, to reimburse a developer for infrastructure investments. When property tax revenues increase, the new money, above the initial amount set at the time of formation, goes to the developer rather than going into the city and county budgets

San Diego’s Office of the Independent Budget Analyst estimates that the developer will be reimbursed up to $378 million of Kroenke’s $460 million investment on infrastructure.

The committee vote to establish the financing district will move to the city council and then the county for final approval.

The council is expected to vote on Midway Rising in the coming weeks,