San Diego · San Diego · SoCal

Midway Rising — Midway District Sports Arena Redevelopment

Stalled

3220 Sports Arena Blvd (Pechanga Arena site), San Diego, CA 92110

Project Type
Mixed-Use
Units Proposed
4,254
Date Filed
September 13, 2022
Delay
54 months

A proposed mixed-use redevelopment of 48-49 acres of city-owned land in San Diego's Midway District, centered on the site of Pechanga Arena. The Midway Rising development team — led by Zephyr Partners, with LA Rams owner Stan Kroenke as primary funder — was selected by the City of San Diego in September 2022. The plan calls for 4,254 apartments, a new modern arena, 14 acres of public parks, and retail. A critical requirement: the ability to build above San Diego's 30-foot coastal height limit, established by Measure D in 1972 to protect coastal views. In November 2020, San Diego voters approved Measure E (57% yes) to remove the height limit from the Midway District. Environmental nonprofit Save Our Access challenged this under CEQA; courts struck it down. In November 2022, voters approved Measure C (51% yes) using a revised EIR. Save Our Access sued again. California's Fourth District Court of Appeal struck it down in October 2025, finding the EIR inadequately analyzed impacts including "Peregrine falcons' ability to nest," air flow, and construction noise. The California Supreme Court declined review December 30, 2025. The 30-foot height limit was restored. As of May 2026, the Midway Rising team is pursuing a density bonus law workaround validated by HCD, and State Senator Akilah Weber Pierson has introduced SB-958 for a project-specific CEQA exemption. The project has been delayed at minimum 5 years. The Midway District's broader housing program — 10,000 homes in the community plan — is effectively blocked for all projects that cannot invoke density bonus law.

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Timeline

November 7, 197230-Foot Height Limit Passed (Measure D, 1972)

San Diego voters approve Measure D — the "Coastal Height Initiative" — by a 64% supermajority, limiting buildings west of I-5 to 30 feet to protect coastal views in Pacific Beach and Ocean Beach. The Midway District, an inland industrial area adjacent to but not on the coast, falls within the restriction's geographic scope because it is west of I-5. This vote — passed to protect ocean views in residential beach communities — will block housing development in an inland warehouse district for more than 50 years.

OB Rag
January 1, 2018Midway-Pacific Highway Community Plan Updated — 10,000 Homes Envisioned

The City of San Diego approves the updated Midway-Pacific Highway Community Plan, calling for major redevelopment of the Midway District and approximately 10,000 new homes. Most of the envisioned housing is not feasible under a 30-foot maximum building height.

Voice of San Diego
November 3, 2020Voters Approve Measure E — Remove Height Limit (57% YES)

San Diego voters approve Measure E, removing the 30-foot height limit from the Midway-Pacific Highway Community Plan area by approximately 57% in favor. Save Our Access immediately begins preparing a legal challenge.

OB Rag
January 1, 2021Save Our Access Sues — First Court Win: Measure E Struck Down

Save Our Access files a CEQA challenge to Measure E. A San Diego Superior Court rules in favor of Save Our Access, finding the city failed to comply with CEQA. Measure E is invalidated and the height limit is restored. The City of San Diego begins preparing a supplemental EIR to bring a revised measure back to voters.

OB Rag
September 13, 2022City Council Selects Midway Rising Team

After a competitive RFP process, the San Diego City Council votes unanimously to select the Midway Rising team — led by Zephyr Partners, with Stan Kroenke as primary funder — to redevelop the 48-acre Sports Arena site. Midway Rising's proposal includes 4,254 apartments (~2,000 affordable), a new modern arena, 14 acres of parks, and retail. The project offers the highest affordable housing commitment in the city's history for a private development.

SD Regional Chamber
November 8, 2022Voters Approve Measure C — Remove Height Limit Again (51% YES)

Using a revised Supplemental EIR designed to address the deficiencies found in 2021, San Diego puts the height limit removal before voters again as Measure C. Voters approve it 51% YES. Save Our Access files another CEQA lawsuit the same day.

CBS 8 San Diego
October 17, 2025Court of Appeal Strikes Down Measure C — Height Limit Restored Again

California's Fourth District Court of Appeal rules that Measure C also violated CEQA, finding the Supplemental EIR inadequate for failure to analyze the full range of environmental impacts of taller buildings — including effects on "air flow, construction noise and Peregrine falcons' ability to nest." The court directs reinstatement of the 30-foot height limit. Midway Rising developers claim density bonus law will allow them to proceed regardless.

OB Rag
November 18, 2025City Council Votes to Seek California Supreme Court Review

In a 6-2 vote, the San Diego City Council authorizes a petition to the California Supreme Court to review the Fourth District's ruling striking down Measure C.

OB Rag
December 30, 2025California Supreme Court Declines Review — Height Limit Definitively Restored

The Supreme Court of California formally denies the City of San Diego's petition for review. The Fourth District's ruling stands. The 30-foot height limit is restored in the Midway District. John McNab (Save Our Access): "I consider the end of round one." The broader Midway District housing program — 10,000 homes in the community plan — is effectively blocked for all projects that cannot invoke density bonus law.

NBC 7 San Diego
March 26, 2026SB-958 Introduced — Project-Specific CEQA Exemption for Midway Rising

California State Senator Akilah Weber Pierson introduces SB-958, which would exempt the Midway Rising project specifically from CEQA requirements — similar to the law passed for SoFi Stadium in Inglewood. Save Our Access has pledged to challenge any attempt to proceed, whether through density bonus law or legislation.

OB Rag
May 2, 2026HCD Validates Density Bonus Law Path — Project May Proceed

The California Department of Housing and Community Development sends a letter to the City of San Diego confirming that density bonus law overrides the local 30-foot height limit — voter-approved or not — and that Midway Rising can legally build above 30 feet under this framework. Voice of San Diego: "State Validates Midway Rising Theory." Save Our Access has pledged to challenge this route in court. As of May 28, 2026, the project's path remains contested but potentially viable. No groundbreaking date has been announced.

Voice of San Diego

Who Was Involved

Supporting
Zephyr Partners
Zephyr Partners (lead developer, Midway Rising team)
Lead Developer

"Midway Rising is moving forward as planned under state density bonus law that encourages affordable housing development. This recent court ruling does not affect mixed-use housing development projects, such as Midway Rising, which proceed under state density bonus law." (Jeff Meyer, spokesperson, October 2025). "Our project is predicated on state bonus density law, so the impact of the decision was minimal to Midway Rising." (Luke Termini, CEO, January 2026)

Todd Gloria
City of San Diego
Mayor of San Diego / Project Champion

"Failure is simply not an option, and we will get this done." "While we are disappointed that the Supreme Court declined to hear the City's appeal, this procedural decision does not change our commitment or our momentum to redevelop the Sports Arena site." (January 2026)

San Diego Voters / Electorate
San Diego County Registered Voters
Democratic Mandate (overridden twice by courts)

November 2020 (Measure E): ~57% YES to remove height limit. November 2022 (Measure C): ~51% YES to remove height limit. Both democratic expressions of preference for housing development were subsequently struck down by courts on CEQA grounds. San Diego voters also originally approved the 30-foot height limit in 1972 (Measure D, 64% yes) — but that measure was intended for the coastal communities, not the Midway industrial area.

San Diego Regional Chamber of Commerce
San Diego Regional Chamber of Commerce
Business Community Endorser

"Midway Rising, which is strongly supported by the Chamber and numerous other organizations, is poised to make affordable housing history in California, with 2,000 units planned for San Diegans most in need." (October 2025 after Fourth District ruling)

California Department of Housing and Community Development
State of California
State Enforcement Agency / Density Bonus Validator

In a letter to the City of San Diego, HCD confirmed that California's density bonus law overrides local zoning ordinances — including voter-approved ones — and that Midway Rising can use the density bonus law to build taller than 30 feet. This validation was seen as a significant win for the Midway Rising team's workaround strategy.

Opposing
Save Our Access
Save Our Access (environmental nonprofit)
Environmental Nonprofit / Lead Litigant

The EIR for Measure C was inadequate because it failed to analyze the full range of environmental impacts associated with taller buildings in the Midway District, including effects on air flow, construction noise, and Peregrine falcon nesting. The 30-foot coastal height limit is a legally protected voter-approved law. On density bonus law: "They can't use it. We'd also probably end up having to bring legal action." (John McNab, January 2026)

Peninsula Community Planning Board
Peninsula Community Planning Board
Community Planning Advisory Body

"That's a whole neighborhood being lifted up vertically. If we continue to densify our neighborhoods and not invest in those neighborhoods... we're going to continue to have issues with the infrastructure, with traffic, with environmental issues." (Mandy Havlik, PCPB)

Deciding
California Court of Appeal (Fourth District, Division One)
California Courts of Appeal
Appellate Court — Issued Height Limit Restoration Ruling

October 2025: found the Supplemental EIR for Measure C inadequate for failure to analyze effects of taller buildings on air flow, construction noise, and Peregrine falcon nesting. Directed reinstatement of the 30-foot height limit. California Supreme Court declined review December 30, 2025. Ruling is now final.

How It Was Obstructed

CEQACalifornia Environmental Quality Act
Invoked by Save Our Access · November 4, 2020

Save Our Access filed a CEQA challenge to Measure E (2020), arguing the city's EIR failed to adequately analyze the environmental impacts of removing the 30-foot height limit. The court ruled in Save Our Access's favor, finding the city violated CEQA. Measure E was invalidated. This required the City to prepare a supplemental EIR before putting another measure on the ballot — a 2-year process that delayed the entire Midway Rising program. FIRST OF TWO CEQA VICTORIES for Save Our Access.

SucceededAdded 24 months of delay
CEQACalifornia Environmental Quality Act
Invoked by Save Our Access · November 8, 2022

Save Our Access filed a second CEQA challenge to Measure C (2022), arguing the Supplemental EIR still failed to adequately analyze environmental impacts of taller buildings — specifying inadequate analysis of effects on "air flow, construction noise and Peregrine falcons' ability to nest." The California Court of Appeal (Fourth District) ruled for Save Our Access in October 2025. The California Supreme Court declined review December 30, 2025. The 30-foot height limit is definitively restored. The broader Midway District housing program (10,000 homes) is effectively blocked for projects without density bonus law eligibility. NOTE: this is the only case in the database where CEQA was used twice to override two separate voter-approved ballot measures.

SucceededAdded 36 months of delay
Height LimitHeight and Density Limits
Invoked by San Diego Voters (1972) / Save Our Access (enforcement) · November 7, 1972

The 1972 Measure D 30-foot coastal height limit — originally passed to protect coastal views in Ocean Beach and Pacific Beach — applies to the Midway District because it is west of I-5. Despite two voter-approved efforts to remove the limit from the inland Midway area (2020 and 2022), courts have upheld it on CEQA grounds. As of May 2026, the limit is in force. It prevents all Midway Rising buildings above 30 feet unless density bonus law or SB-958 successfully overrides it.

SucceededAdded 54 months of delay

Sources

State Validates Midway Rising Theory
Voice of San Diego2026

Most recent significant development: HCD officially confirmed density bonus law allows Midway Rising to exceed the 30-foot limit. Confirms SB-958 is also moving.

Bill Introduced in State Senate to Exempt Midway Rising Project From CEQA Review
OB Rag / Voice of San Diego2026

Confirms SB-958 introduction (State Sen. Akilah Weber Pierson, March 2026). Explains the SoFi Stadium legislative precedent.

What's Next for Midway Rising
Axios San Diego2026

February 2026 update. Confirms Stan Kroenke as funder and SoFi Stadium analogy. Contains Termini quote on density bonus law.

Court Restores Midway District's 30-Foot Height Limit
NBC 7 San Diego2026

Contains John McNab quote about "round one" and density bonus law challenge threat. Best source for confirming Supreme Court denial (December 30, 2025) and height limit restoration.

After Multiple Delays, State Housing Law Could Clear Path Forward for Midway Rising
KPBS2025

Best explanation of the density bonus law workaround and HCD letter confirming it applies. Contains full timeline of ballot measures.

How Midway Rising Developers Plan to Sidestep Requirements and Avoid the 30-Foot Height Limit
OB Rag / San Diego Union-Tribune2025

Best developer-perspective source explaining the density bonus law strategy. Contains Jeff Meyer spokesperson quote.

A History of the Fight for San Diego's 30-Foot Coastal Height Limit
OB Rag2025

Best historical narrative from the opposition perspective. Covers 1972 Measure D through 2025 Court of Appeal ruling.

Midway's Ambitious Redevelopment Plan Is Now a Massive Test of What State Housing Laws Allow
Voice of San Diego2025

Best single source for the post-Measure-C-ruling analysis. Explains the density bonus law theory and confirms 4,254 units and ~2,000 affordable in Midway Rising.

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