New analysis quantifies jobs, housing, other economic impacts for forthcoming Sports Arena redevelopment
A new analysis commissioned by Midway Rising and authored by San Diego Regional Economic Development Corporation (EDC) quantifies the projected economic and fiscal impacts of the Midway Rising redevelopment, which would revitalize nearly 50 acres of City-owned land in San Diego’s Midway/Sports Arena neighborhood.
With the addition of thousands of market-rate and designated affordable housing units, an entertainment district centered around a 16,000-seat facility, and a highly-amenitized urban park, EDC estimates Midway Rising will have a $285 million direct annual economic impact, equivalent to hosting another San Diego Comic-Con.
“This project is more than just a redevelopment—it’s a long-term investment in San Diego’s future,” said Mark Cafferty, President & CEO of San Diego Regional EDC. “As our region and state grapple with a dire affordability crisis, Midway Rising promises meaningful and accessible housing options, as well as a world-class tourism and entertainment hub that will add jobs. This is exactly the type of bold, private economic investment San Diego demands.”
Midway Rising’s more than $3.9 billion redevelopment will remake the nearly 60-year-old, City-owned Sports Arena facility and surrounding parking lot in the Midway neighborhood, and includes 4,250 new homes, a new 16,000-seat arena, and 130,000 square feet of retail space.
The EDC analysis also revealed other economic impacts to the City and neighborhood, including:
- 172% increase in housing stock in the Midway neighborhood.
- The building of 2,000 deed-restricted affordable homes below 80 percent Area Median Income, which is the single-largest affordable housing project in California’s history.
- The staffing of 3,100 permanent jobs paying 12 percent higher average wages relative to the site’s current retail mix.
- A doubling of arena visitor spending from $160 million to $344 million annually.
- $1.4 million in new tax revenues to the City and $3.9 million in new tax revenues to the County each year.
- Participation in the City’s Business Cooperation Program, which reallocates the full 1 percent sales and use tax directly to the City’s General Fund.
- Throughout the 10-year phased build-out, total construction activity is estimated to generate $3 billion in gross regional product and $94 million in tax revenues within the City of San Diego, while supporting the creation of 21,900 temporary construction jobs.
Selected by the City in late 2022, the Midway Rising team is made up of affordable housing developer Chelsea Investment Corporation, sports venue developer and operator Legends, market-rate housing developer Zephyr, and The Kroenke Group, a real estate investment company led by billionaire and professional sports team owner Stan Kroenke.
Midway Rising is anticipated to break ground in late 2026 pending City Council approval later this year.
The EDC assessment was commissioned by Midway Rising in Summer 2025. EDC currently does not endorse specific ballot measures or candidates. From time to time, we provide objective research on the economic impact of specific measures or proposals such as this to better inform the public and policymakers on a project’s potential economic impact. If you are interested in working with EDC on customizable research, contact us.