Special Land Use and Housing Committee Meeting: Midway Rising DDA and EIFD

The Special Land Use and Housing Committee of the San Diego City Council met on October 16, 2026 (Chair Lee presiding) to consider the disposition and development agreement (DDA) for the Midway Rising project on the Sports Arena site and the related Enhanced Infrastructure Financing District (EIFD). The committee heard extensive public testimony and received presentations from city staff and the Independent Budget Analyst (IBA). Both items were unanimously approved for forwarding to the full City Council.

Consent Calendar

The committee unanimously approved the consent agenda (4-0), including approval of prior meeting minutes, acceptance of endowment funds for the Clayton Vernal Pool Preserve, acceptance of 8.56 acres of land in East Elliott from the Mission Trails Regional Park Foundation, the declaration of city-owned property at 4069 30th Street as surplus land (with Councilmember Whitburn noting it was requested to prioritize affordable housing development on the site), and a 25-year franchise agreement with Jet Infrastructure Holding IA LLC.

Public Comments & Testimony

Consent Agenda: Public commenters raised a range of issues. One speaker urged government shutdown. Others expressed support for the land donations and the surplus land declaration.

Discussion Items (Items 6 & 7): The committee heard approximately 70 speakers spanning several hours of testimony.

• Supporters: A large coalition of labor unions (IATSE Local 122, Carpenters Union, Laborers Local 89, Unite Here), affordable housing developers and residents (Chelsea Investment, Pacific Southwest CDC, Serving Seniors, San Diego Regional Center), pro-housing advocates (YIMBY Democrats, Build SD, Circulate SD), the San Diego Regional Chamber of Commerce, the Midway Pacific Highway Community Planning Group, and other community organizations argued the project would deliver urgently needed housing (especially the 2,000 affordable units), create thousands of good union construction and permanent jobs, revitalize a blighted area with parks and infrastructure, and was a fair deal for the city.
• Opponents and Concerns: Several residents voiced strong opposition or serious concerns. They cited significant environmental risks, including the site's location on a floodplain, sea level rise, high groundwater, and soil contamination from toxic waste. Speakers argued the long-term financial return to the city was insufficient, the 85-year lease was too long, the risk of off-siting affordable housing was not adequately addressed, traffic gridlock was unmitigated, and the project would primarily benefit developers. Michael Aguary specifically called for a Project Labor Agreement before approval.

Discussion Items

• Midway Rising DDA (Item 6): Christina Bibler (Economic Development) presented the $4.2 billion project, including 2,000 affordable housing units (at 30-60% AMI), an expansion-ready 16,000-seat arena, 14.5 acres of parks, and 7,000 parking spaces. The developer assumes all construction and financing risk. The city retains land ownership under 85-year ground leases. Revenue to the city includes ticket fees on arena tickets (starting year 11) and participation rent from market rate housing, projected to be between $880 million and $1.2 billion in nominal value ($23-69 million in present value).
• Enhanced Infrastructure Financing District (Item 7): Richard Eyre (Finance) explained the EIFD would capture $1.2 billion in future property tax increment (city and county shares) over 45 years to reimburse the developer for approximately $370 million in eligible upfront public infrastructure costs (roads, parks, utilities). The IBA noted this functions as a low-interest (3%) financing mechanism for the city.
• Independent Budget Analyst (IBA) Presentation: The IBA concluded the agreement represented a "fair and reasonable balance of risks, financial returns, and public benefits." They noted the developer bears the primary risk but flagged potential vulnerabilities in the affordable housing tax credit market and the long-term reliance on EIFD revenue.

Key Outcomes

• Item 6 (DDA) – Approved 4-0: The committee approved the DDA with an amendment proposed by Chair Lee and seconded by Vice Chair Rivera. The amendment requires the DDA to be revised to prohibit Midway Rising's 2,000 affordable units from serving as receiver sites to satisfy other projects' affordable housing requirements unless all other available funding options for gap financing have been pursued and exhausted, as verified by the city.
• Item 7 (EIFD) – Approved 4-0: The committee approved the resolution of intention to form the Midway Rising Enhanced Infrastructure Financing District.
• Post-Meeting Referrals:
  • Councilmember Whitburn requested the IBA provide an analysis to the full City Council on the potential scope of affordable units that could be offsited to Midway Rising under current rules.
  • Councilmember Rivera requested city staff (Economic Development) work with the committee to bring forward a Land Development Code amendment restricting city-owned or city-leased sites from serving as receiver sites for another development's offsite affordable housing obligation.