Deal **Almost** Done!

The Midway Rising project, which aims to redevelop the city’s sports arena real estate in the Midway District, is still moving forward, although a final development deal won’t be considered until early 2025, according to San Diego Union-Tribune. This is a significant delay from the original goal of finalizing a deal by the end of this year.

Christina Bibler, the head of the city’s real estate division, recently provided an update to the City Council, highlighting a delay in hiring a consultant to evaluate the prospects of forming a tax increment financing district (EIFD) to help finance public facilities. This delay, along with the need to give the county time to explore an EIFD, has pushed the timeline for any final votes into early 2025.

The city and the development team, which includes Zephyr, Chelsea Investment Corp., and Legends, are still negotiating lease terms, with multiple term sheets exchanged between the parties. The proposed deal terms have not been made public.

While the Midway Rising project has been in the works for over 18 months, the affordable housing commitment, which was a key factor in the team’s selection, has proven challenging. The significant number of rent-restricted units makes financing the project more difficult. An EIFD could help offset construction costs and make the subsidized units possible.

An EIFD would capture the incremental growth in property tax dollars within the project’s boundaries, helping to pay for public facilities like parks and transit centers. However, there are concerns from some community members about the district’s boundaries and whether they should encompass the entire Midway community.

As a local Realtor, I am closely following the development of the Midway Rising project. I believe it has the potential to significantly impact the real estate market in the Midway District. It is important to stay informed about the project’s progress and any potential impacts on property values.

If you are interested in learning more about the Midway Rising project or the real estate market in San Diego, please visit my website at https://robertluiswallace.com/services/. I offer a wide range of real estate services, including market analysis, property valuation, and buyer and seller representation.