It’s Midway Rising Week

New Update with IBA Report (see below)

From Voice of San Diego / October 12, 2026

With fewer than two months left in the exclusive negotiating agreement between the city of San Diego and the Midway Rising development team, the City Council will begin discussing the actual deal staff has hashed out.

The Land Use and Housing Committee will consider the proposed lease and details of the deal at a special meeting Friday, Oct. 16.

Friday, October 9, city staff released its report on the proposal, which you can read here. The city claims it will be the largest affordable housing project in the state of California.

The U-T has an early story on the deal, focusing on the finances. The city is forgoing significant rental payments on the property in exchange for the affordable housing, parks and infrastructure investments. However, over time it will share in the rental income of the market-rate housing and, after 10 years, it will take a small share of the tickets sold at the new arena.

Tax-increment is back: The report also provides the first details from the ongoing negotiations about the Enhanced Infrastructure Financing District, or EIFD. In short, the city and county would agree to forego future increases in property tax collections in the area and the money would go to the developer. Midway Rising is putting in $400 million for infrastructure and hoping to recoup 28 percent of that through this financing.

Still to come: The Council insisted its independent budget analyst, Charles Modica, be part of the city’s negotiating team. His report is expected Monday. We will have more on that and the deal in coming days

UPDATE from Voice of San Diego on Tuesday, Oct. 13

IBA on Midway Rising: ‘A Fair and Reasonable Transaction’

The city of San Diego has had some putrid real estate transactions and in 2022, led by then Councilmember Monica Montgomery Steppe, the Council insisted that for the redevelopment of its nearly 50 acres of land at Sports Arena, the Council’s independent budget analyst, or IBA, would be part of the negotiations.

It was unprecedented for the Council to have a representative at the table. Now, Charles Modica, the IBA, has released his report on the proposed deal.

He’s into it: “Overall, our Office believes the proposed agreement represents a fair and reasonable transaction for the City. The agreement requires the Developer to undertake a substantial financial investment to redevelop 48.5 acres of City-owned property that has remained largely unchanged since the 1960s, while providing significant new housing, entertainment, and commercial opportunities.”

The Council will begin discussing the proposed deal Friday at its Land Use and Housing Committee.