Midway Rising is the proposal to replace Pechanga Arena and turn the surrounding Sports Arena property into a new mixed-use neighborhood. The current plan covers 49.23 acres and includes 4,254 rental homes, a new 16,000-seat arena, 14.54 acres of parks and public space, and up to 130,000 square feet of shops and other commercial space.
For people who live in Point Loma, Loma Portal, Bay Park, or Old Town, this is one of the biggest proposed changes to the area in decades. It is also still a proposal. Several important approvals and agreements remain unfinished.
Where Midway Rising stands now
As of September 27, 2026, Senate Bill 344 has passed the California Legislature and is awaiting action by Gov. Gavin Newsom. He has until September 30 to sign it, veto it, or allow it to become law without his signature.
The bill is narrow and project-specific. If it takes effect, the City of San Diego could rely on the project's existing environmental report for California Environmental Quality Act compliance once the City Council certifies that report. The environmental mitigation measures would still become conditions of approval, with ongoing monitoring and annual compliance reports.
That does not approve Midway Rising by itself. The project still needs City Council action on its environmental report and land-use plans, along with approval of the long-term ground lease and financing structure. The city and development team are also working under an exclusive negotiating agreement that runs through December 4, 2026.
A Land Use and Housing Committee hearing has been reported for October 8, but it was not yet shown on an official posted agenda when this article was prepared. That date should be treated as expected, not final.
What is actually in the plan
| Piece | Current proposal |
|---|---|
| Rental homes | 4,254 total |
| Affordable homes | 2,000, restricted to qualifying households at or below 80% of area median income |
| Market-rate homes | 2,254 |
| Arena | A new 16,000-seat entertainment center |
| Parks and public space | 14.54 acres |
| Shops and commercial space | Up to 130,000 square feet |
| Site | 49.23 acres of city-owned land in the Midway District |
The development team includes Chelsea Investment Corporation for affordable housing, Zephyr for market-rate housing, Legends for the arena, and The Kroenke Group as an equity investor.
All 4,254 homes in the current proposal are apartments. This would add a large amount of rental housing, but it would not create new homes for sale.
Why the height issue matters
San Diego voters approved measures intended to remove the Midway District from the coastal 30-foot height limit in 2020 and again in 2022. Courts found the environmental review supporting those measures inadequate, and the 30-foot limit was restored.
That history is one reason SB 344 matters. The bill is designed to reduce the risk of another lawsuit over whether the project's environmental report is adequate. It does not erase the city's obligation to adopt and enforce the mitigation measures in that report, and it does not replace the approvals still needed from the City Council.
What nearby homeowners should watch
Nobody can responsibly promise that Midway Rising will raise or lower a particular home's value. The project has several moving parts, and they may affect nearby streets differently.
The pieces worth watching are:
- The final lease and financing terms. These will show what the developer must deliver, when it must be delivered, and what public funding may be involved.
- The affordable-housing schedule. The headline commitment is 2,000 affordable apartments. The final agreements and construction schedule will matter just as much as that total.
- Construction timing. The development team has publicly targeted a 2027 groundbreaking, but no work can begin on that schedule until the remaining approvals are complete.
- Traffic and access plans. Rosecrans Street, Sports Arena Boulevard, and Midway Drive already carry heavy traffic. Construction phasing and arena operations will shape the day-to-day effect on nearby residents.
- Parks and public connections. More than 14 acres of parks and public space could change how the district feels, but the details and delivery schedule matter.
If you plan to sell in the next year or two, you are selling into today's Midway District, not the completed version shown in a long-range plan. If you expect to stay for a decade, you may experience both years of construction and a substantially different neighborhood at the end of it.
What buyers should consider
Buyers looking in Point Loma, Loma Portal, Bay Park, Morena, or Old Town should treat Midway Rising like any other major planned development: understand what is approved today, what is still proposed, and how close a specific home is to the likely construction and event traffic.
Before making an offer, consider:
- Whether your daily route uses Rosecrans Street, Midway Drive, or Sports Arena Boulevard.
- How close the home is to arena traffic, parking activity, and future construction.
- Whether the planned parks, restaurants, and public spaces would be useful to you.
- Whether your timeline is short enough that the construction period matters more than the finished project.
The San Diego Communities Guide can help you compare the surrounding areas, and the Point Loma and Bay Park guides go deeper on the neighborhoods closest to the site.
Frequently asked questions
What is Midway Rising?
Midway Rising is the proposed redevelopment of the 49.23-acre, city-owned Sports Arena site. The current plan includes 4,254 rental homes, 2,000 of them affordable, a new 16,000-seat arena, 14.54 acres of parks and public space, and up to 130,000 square feet of commercial space.
When will Midway Rising break ground?
The development team has said it hopes to begin in 2027. That is a target, not a guaranteed start date. The project still needs final City Council approvals and completed lease and financing agreements.
Did Gov. Newsom sign SB 344?
Not as of September 27, 2026. The Legislature passed the bill, and the governor has until September 30 to sign it, veto it, or allow it to become law without a signature.
How many homes would Midway Rising build?
The current City of San Diego project documents call for 4,254 rental homes: 2,000 affordable apartments and 2,254 market-rate apartments.
Will Midway Rising affect home values in Point Loma or Bay Park?
It may influence buyer perceptions and daily life over time, but there is no reliable way to assign a future dollar amount today. New rental supply, parks, arena activity, construction, traffic, and the final public improvements could pull in different directions.
Curious what your home near the Midway District is worth in today's market? Email me for a San Diego home value, and I will build the estimate around recent nearby sales rather than a future project rendering.