In the real estate competition to contract and remodel the site of the city’s 48-acre sports stadium, San Diego decided as the winner the progression team that provided the most residential units.
City Council members voted 7-1 Tuesday to elect Midway Rising. The vote came after a heated discussion that put the team, its partners and even potential contractors under the microscope on a variety of issues, adding allegations of deceptive painting practices.
“Today’s approval is an important step in our purpose to revitalize the Midway District with much-needed housing, as well as a world-class entertainment venue and very good amenities for the community,” San Diego Mayor Todd Gloria said in a statement. “The Midway Rising team not only has the most compelling vision for repurposing the site, but also the expertise and financial means to execute it. “
The council’s action ends a nearly year-long festival and begins a new phase in the effort to rebuild the Midway District. Once the exclusive bargaining agreement is signed, the city and team will have approximately two years to define the terms of the lease. and development. Staff will be required to provide quarterly updates to the Board and come with the Office of the Independent Budget Analyst in discussions.
Midway Rising includes market-rate home developer Zephyr, sports and entertainment facility operator Legends and homebuilder Chelsea Investment Corp. Low-income families with an average affordability of 48% of the region’s median income.
The group’s plan also includes 250 homes for middle-income people, 2,000 homes at market price, a new stadium with 16,000 spaces, a hotel with two hundred rooms and 4,500 parking spaces. rooftop park.
“The Midway Rising team is grateful to the San Diego City Council for voting to move forward with Mayor Gloria’s council and city staff,” said Bill Rhoda, assignment progression manager at Legends. colorful network that includes 2,000 housing units, more than 20 acres of new parks, 8500 family jobs and a trendy sports stadium for all San Diegans. “
This is the time when San Diego tries to get rid of its sports arena site. The first effort opposed California’s recently amended surplus land law. The law is designed to maximize housing on land that municipalities no longer need. priority” to the bidder with the largest number of limited residential complexes for families earning 80% or less of the region’s median income.
“The previous administration’s restart of the sports stadium was a setback for the city, but the current variety of the Midway Rising team translates into a monumental step toward a revitalized Midway community where the citizens of San Diegan will enjoy living, working and betting for decades to come. “said Penny Maus, who heads the city’s real estate department.
The existing real estate festival began in October, when the city put its Midway District assets back on the market with a “notice of availability,” as required by law.
San Diego won seven responses in the required 60-day completion period, although two were found to be non-compliant. In December, the city began a 90-day “good faith” negotiation period with the remaining five teams, as also required by law. In May, City Council members narrowed the list of contenders to 3 teams: Midway Rising, HomeTownSD, and Midway Village.
The real estate branch then entered a due diligence stage and hired an outside real estate representative, Jones Lange LaSalle, to determine the financial models and team functions.
The general recommendation, which largely motivated Midway Rising’s affordable housing proposal, was criticized at Tuesday’s council meeting, with some members of the public urging elected leaders to slow down the process and avoid pitfalls from outside transactions.
“Are you sure you’ve completely reviewed this agreement, do you have the real estate skills and sophistication to prevent the city from being the dove in the real estate transaction?” said David Moty, a Talmadge resident. “Controversy is starting to emerge. ” It revolves around this, and genuine ownership is not the strong point of the city. So make sure.
The comments refer to a series of accusations made in recent days against Zephyr and its chief executive, Brad Termini, namely that the executive’s political contributions to Gloria give the appearance of an irregularity. at the sports arena site, it has also been criticized for its limited involvement in large-scale projects.
Team members of Rising’s now-eliminated rivals tried to draw attention to perceived flaws in the winning bid.
“I have no words to explain why we don’t ask tough questions about stadium proposals. A new stadium with 16,000 parking spaces (and) 4,000 new homes is not supported on this site. It puts 20 pounds of stuff in a 10-pound bag that will weigh on the Midway district and surrounding communities,” said Erik Judson, executive director of JMI Sports and a member of the HomeTownSD team.
Representatives from the San Diego Carpenters Union also accused the Midway Rising, Chelsea, homebuilder of working with drywall contractors who use hard-working agents and pay staff under the table. Union members doubled down on the allegations, which first surfaced at last week’s committee meeting.
Jesse Garcia, who oversees Local 619, affiliated with the Southwest Regional Council of Carpenters, said Chelsea works with drywall subcontractors with “a history of exploitation. “
“This recommendation does not allow Chelsea,” he said.
Board member Raul Campillo, the only one who voted against deciding on Midway Rising, questioned the alleged practices, but also expressed considerations about Legends Arena’s progression experience, monetary unknowns about the project and the verification of the plan.
“I need housing, and I need affordable housing as temporarily as possible,” he said. “But I have to be able to accept the proposal that is selected. “
However, Campillo rejected through his colleagues who voted to go ahead with Midway Rising after the developer made a series of promises, adding the company’s commitment to deliver 2,000 affordable units.
“Today, we settled for a team to start negotiations,” said Joe LaCava, a board member, noting that the board continues to oversee the long-term transaction. “It’s not a big package full of a big knot. (It is not) a yes or no (vote) that will consecrate us forever.
updates
18:41 September 13, 2022: This story has been updated with a quote from the mayor and more information.
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