Despite a recent California Supreme Court ruling, the $3.9 billion Midway Rising redevelopment project remains very much alive. And for investors and stakeholders tracking San Diego's housing and commercial landscape, the path forward is worth understanding closely.
The Project at a Glance
Midway Rising proposes to transform the aging Sports Arena site into a large-scale mixed-use development featuring thousands of apartments (a significant portion of them affordable) alongside retail, parks, and a new stadium. It ranks among the largest affordable housing initiatives in California history, and developer Brad Termini has estimated its economic impact could rival the three biggest events at the San Diego Convention Center combined, including Comic-Con. (Source: Axios, February 2026)
Why It's Been Stuck in Court
The site sits within a zone restricted by a 30-foot building height limit, and that single constraint has driven years of litigation.
Voters cleared a path in 2020, approving a ballot measure to exempt the project from the height restriction. A citizen group called Save Our Access promptly challenged the measure, arguing that environmental review had been inadequate. The city revised its studies and returned to the ballot in 2022 (voters approved the project again) but Save Our Access filed a second lawsuit, this time contending the city should have started its environmental analysis from scratch. Lower courts sided with the challengers, and last month the California Supreme Court declined to overturn those rulings. (Source: Axios, February 2026)
Why Developers and City Hall Aren't Walking Away
The legal setback hasn't stopped Mayor Todd Gloria or Termini from pressing forward. In his recent State of the City address, Gloria pledged to bring the project before the City Council for a public vote this spring. Termini, meanwhile, says the project was always structured with contingencies in mind.
The most immediate workaround: California's state density bonus law, which can grant height exemptions to projects meeting certain affordable housing thresholds. Termini has indicated Midway Rising was designed with that provision in mind, suggesting the Supreme Court ruling may have limited practical impact on the project's buildability. (Source: Axios, February 2026)
The city is also exploring dedicated legislation, a targeted exemption from state environmental review requirements similar to what Los Angeles Rams owner Stan Kroenke secured to build SoFi Stadium in Inglewood. (Source: Axios, February 2026)
What Comes Next
The project is expected to go before the Land Use & Housing Committee before advancing to a full City Council vote, both anticipated this spring. (Source: Axios, February 2026)
Source: Axios San Diego, "Midway Rising next steps after California Supreme Court height limit ruling," February 5, 2026.
