San Diego Released Midway Rising Project Documents

The city’s proposed lease agreement includes plans for 4,254 residential units and significant affordable housing.

Updated on Oct. 10, 2026 in Apartments

Isometric editorial illustration showing a dense urban model of modular residential buildings and public park areas, representing a large-scale urban development project. — San Diego officials have released the proposed lease agreement for the Midway Rising redevelopment, a project set to add thousands of homes and a new arena to the Midway District. AI Illustration. Upload story photo >

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Should your local government prioritize public benefits over maximizing rent revenue in land development deals?

San Diego officials have published proposed transaction documents for the Midway Rising redevelopment, a major project featuring a 16,000-seat arena and thousands of new homes. The deal includes requirements for 2,000 affordable housing units for residents earning 80% or less of the area median income.

Why it matters

The city has structured the lease to prioritize public benefits like affordable housing and new parks over maximizing immediate cash revenue. This move shapes the future of the local rental and home-buying market in the Midway District for the next several decades.

The project includes 4,254 residential units, with 2,000 designated as affordable housing for qualifying households. The total lease lifetime rent is projected at $896.3 million, though its net present value is estimated at $23.2 million.

The players

Land Use & Housing Committee

A local legislative body responsible for reviewing municipal development projects and land-use policies.

City of San Diego

The local municipal government overseeing the redevelopment of the Midway District site.

The details

The development utilizes a participation rent structure where the city earns a percentage of project revenue rather than a flat fee. Developers will operate under a 15-year horizontal ground lease, followed by 85-year vertical ground leases for specific building pads. The plan also proposes an infrastructure financing district that could generate $1.16 billion to offset the $462 million in estimated infrastructure costs.

March 2025: The land fair market value was established at $75.6 million.
October 16, 2026: The Land Use & Housing Committee will review the transaction terms.
2029: Construction is expected to begin.
2032: The new arena construction is anticipated to start.
2050: The entire project is expected to reach completion.

Money Landscape

The Midway Rising redevelopment project serves as a cornerstone for current local efforts to address the region's long-term housing supply constraints. This proposal marks the formal introduction of the project's lease terms into the municipal review process.

Local residents should track the upcoming October 16 committee review to understand how potential affordable housing mandates might influence future rental availability in the area. For questions regarding how these development plans impact your household budget or housing search, consult a qualified real estate or tax professional.

The takeaway

The city’s shift toward prioritizing affordable units over immediate cash rent signals a long-term change in local land development strategy. Residents should follow the committee’s October 16 meeting for updates on how the project’s progression may impact future local housing supply and infrastructure planning.