In a real estate competition to rent and rebuild a 48-acre sports arena site, San Diego has chosen as the winner, the team of developers who propose the most affordable residential unit.
City Council members voted 7-1 on Tuesday to vote for Midway Rising. The vote comes after sometimes heated discussions that put the team, its partners and even potential subcontractors under the microscope on a variety of topics, including allegations of deceptive labor practices.
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“Today’s approval is a major step forward in our goal to revitalize the Midway District with much-needed affordable homes along with world-class entertainment venues and exceptional facilities for the community,” San Diego Mayor Todd Gloria said in a statement. “The Midway Rising team not only had the most compelling vision for reusing this site, but also the experience and financial means to execute.”
The council’s action ended nearly a year’s contest and began a new phase in the effort to remake Midway District properties. The city and the team will have, once the exclusive negotiating agreement is signed, approximately two years to finalize the terms of the lease and development. Staff will be required to provide quarterly updates to the board and include an independent budget analyst office in discussions.
Midway Rising includes market-grade housing developer Zephyr, sports and entertainment venue operator Legends and affordable housing builder Chelsea Investment Corp. The team proposes to expand ownership of a city sports arena with 2,000 deed-restricted units for low- and very-low-income families with an average affordability of 48 percent of the area’s median income.
The group plan also requires 250 middle-income units, 2,000 market-priced units, a new arena with 16,000 seats, a hotel with 200 rooms and 4,500 parking spaces. The project covers 20 hectares of square and garden space, including 4.2 hectares of rooftop gardens.
“The Midway Rising team is grateful to the San Diego City Council for voting to go forward with Mayor Gloria’s recommendation and city staff,” said Bill Rhoda, a project development executive at Legends. “We are committed to delivering an inclusive, affordable and economically vibrant community that includes 2,000 affordable homes, more than 20 acres of new parks, 8,500 jobs for working families, and a modern sports arena for all San Diegan residents.”
This is San Diego’s second attempt to dismantle its sports arena site. The first attempt went against the recently amended California Surplus Land Act. This law is designed to maximize affordable housing on land that is no longer needed by the city government. This requires local agencies to give “first priority” to bidders proposing the highest number of deed-restricted housing units for families earning 80 percent or less of the local median income.
“Restarting the previous administration’s sports arena process was a setback for the city, but today’s selection of the Midway Rising team results in a monumental step towards a revitalized Midway District where San Diegans will enjoy living, working and playing for decades to come,” said Penny Maus, who heads the city’s real estate department.
The current real estate competition kicked off in earnest in October, when the city returned its Midway District properties to market with an “availability notice,” as required by law.
San Diego received seven responses during the required 60-day notice period, though two were deemed unresponsive. In December, the city began a 90-day negotiation period “in good faith” with the remaining five teams, as also required by law. In May, City Council members narrowed the field of competitors to three teams: Midway Rising, HomeTownSD, and Midway Village+.
The real estate department then entered a due diligence phase and used outside real estate consultant Jones Lange LaSalle to examine the team’s model and financial capabilities. Last month, Midway Rising was recommended for final selection by staff and the mayor.
The recommendation for selection, driven in large part by Midway Rising’s affordable housing proposal, came under fire at Tuesday’s board meeting with some members of the public urging elected leaders to slow down the process and avoid the pitfalls of earlier deals.
“Are you sure you have fully reviewed this deal? Do you have the real estate skills and sophistication to keep the city from becoming a patsy in other real estate deals? said David Moty, a resident of Talmadge. “Controversy is starting to arise around this, and real estate is not the best in the city. So make sure.”
The comments refer to a number of accusations in recent days leveled against Zephyr and its CEO Brad Termini, namely that the executive’s political contributions to Gloria gave the impression of being inappropriate. The company, which will be responsible for building 2,000 market-priced units on the sports arena site, has also been criticized for its limited experience with large-scale projects.
Team members from now-eliminated rivals Midway Rising also attempted to draw attention to the perceived flaws in the winning bid.
“I’m confused why we didn’t ask tough questions regarding the arena proposal. The new arena with a capacity of 16,000 seats with parking (and) 4,000 new residential units will not fit in this location. This is putting 20 pounds of stuff into a 10 pound bag that will destroy the Midway District and the surrounding community,” said Erik Judson, who is CEO of JMI Sports and part of the HomeTownSD team.
Representatives from the San Diego carpentry union also accused affordable housing builder Midway Rising Chelsea of working with drywall subcontractors who used labor intermediaries and paid under-the-table workers. Union members doubled down on the allegations, which first surfaced at a committee meeting last week.
Jesse Garcia, who oversees union 619 Local, an affiliate of the Southwest Regional Carpenter’s Council, said Chelsea worked with drywall subcontractors with a “track record of exploiting workers.”
“This board shouldn’t allow Chelsea,” he said.
Board member Raul Campillo, the only voice against the Midway Rising election, took issue with the alleged practice, but also voiced concerns about the Legends arena development experience, the project’s financial ignorance and staff scrutiny of the plan.
“I want housing, and I want affordable housing as quickly as possible,” he said. “But I have to be able to trust the chosen proposal.”
Campillo, however, was turned down by his peers who chose to move forward with Midway Rising after the developer made a number of promises, including a firm commitment to deliver an affordable 2,000 units.
“Today we selected a team to start negotiations,” said Board Member Joe LaCava, emphasizing the board’s continued oversight of future transactions. “It’s not a pretty package wrapped in a nice ribbon on top. (Not) yay or nay (voice) that will bind us forever.”
18:41 September 13, 2022: This story is updated with a quote from the mayor and additional information.
18:41 September 13, 2022: This story is updated with a quote from the mayor and additional information.
What Indian owns Pechanga?
Pechanga Resort Casino is wholly owned and operated by the Pechanga Band of Luiseño Indians. Opened in 2002, Pechanga is the largest resort/casino on the West Coast and one of the largest in the country, with 200,000 square feet of gaming space.
What Indian tribes are in Temecula? A group of people now known as the Luiseño Indians have inhabited the Temecula Valley for thousands of years. We call ourselves Payómkawichum (People of the West), and we are made up of seven bands: Pechanga, Pauma, Pala, Rincon, San Luis Rey, La Jolla, and Soboba.
What is the Luiseno tribe known for?
The Luisenos family are hunter-gatherers, and often move from place to place as they gather food for their family. Luiseno’s men hunt deer, rabbits, and small game, and go fishing in rivers and seas. The Luiseno women collect seeds, nuts, beans, and fruit.
What happened to the Luiseño tribe?
During this period the Spanish missionaries bore the name San Luiseno to the natives of the country because of their proximity to the Mission. Many of the Ata’axm died from European disease, overwork, starvation, and lost their way of life due to relocation and conversion to Catholicism.
What did the Luiseño tribe trade?
The things they considered valuable were trading beads, items used in their ceremonies, eagle nests, and songs. Luiseño/Juaneño did not travel much for the purpose of trading with other groups.
How much money do the tribe members get from Pechanga?
The Cuevas operate the Pechanga Resort and Casino, the largest in California. By some estimates, he earns from $1-2 billion a year and pays each tribe member $300,000 or more a year.
How much do Pechanga natives make?
How much did each tribe member receive? According to court records, that’s about $13,000 per month, or, about $156,000 per year.
How much do Pechanga tribe members make a month?
Members of the Pechanga Band of Luiseno Indians recently received a spike in their monthly per capita payments from $22,431 to $30,000, CBS2 News reported.
Can you take a purse into Pechanga arena?
Clear Bag Policy Everyone and their bags will be searched. Clear tote bags (including handbags/wallets) made of clear plastic, vinyl or PVC and not exceeding 12” x 6” x 12” will be allowed in after inspection.
Does Pechanga require a vaccination card? Starting April 1, 2022, Pechanga will no longer require concert attendees to show proof of vaccination or a negative COVID-19 test.
Can you drink at Pechanga arena?
There will be a maximum of two alcoholic beverages sold to each Guest, per purchase, per valid ID. All Guests who appear to be younger than the age of thirty-five (35) will be required to present a positive ID before serving alcoholic beverages.
Can you smoke in Pechanga arena?
Am I allowed to smoke at Pechanga Arena San Diego? California law prohibits smoking, e-cigarettes, and vaping in public meeting facilities. Smoking is permitted in designated areas located outside each facility entrance.
How much is parking at Pechanga Arena Gulls game?
The daily rate is $20.00/24 hours.
What time do doors open at Pechanga arena?
San Diego’s Pechanga Arena doors generally open 60 minutes before the event’s start time, however they may open 90 minutes before the event’s start time or special events.
Can you smoke in Pechanga?
Pechanga Resort and Casino: Smoking is prohibited inside the casino, but smoking areas are offered outside, according to an emailed statement from a spokesperson. Soboba Casino: Smoking is prohibited inside the casino. However, a smoking area is available outside, according to an emailed statement from a spokesperson.
In which casinos can you smoke? Las Vegas, the nation’s largest gambling market, remains a casino smoking bastion; only one resort, Park MGM, bans smoking completely. New Jersey allows smoking up to 25% of the casino floor.
Is smoking allowed at Morongo casino?
Casino 95% smoke free.
Can you smoke in casinos in California?
Because Californian tribes are a sovereign state, they are not subject to many state laws, including California’s no-smoking regulations. They can set the rules for their casinos, and only three of California’s 69 tribal casinos are completely smoke-free.
Is smoking allowed in Pechanga casino?
Non-Stop Action Pechanga Resort Casino is one of the largest resorts/casinos in the United States. The large casino floor covers 200,000 square feet. The casino features 5,400 slot machines, 152 table games, a 38-table non-smoking poker room and an ultra-modern 700-seat bingo facility.
Can you smoke in Arizona casinos?
The Arizona Smoke-Free Act in the Grand Canyon State ensures most public spaces are free of second-hand smoke, but the law does not affect casinos. Tribal lands are exempt from law, and all Arizona casinos are under their jurisdiction.
Is smoking allowed at Desert Diamond casino?
Our Smoke Free Casino is smoke free! Smoking and vaping are not permitted in the casino.
Can you still smoke cigarettes in a casino?
People let loose on the dance floor, others spent too much on slots, and some lit a cigarette for the first time in centuries. That said, there are rules. So when people ask if you can smoke on the Las Vegas Strip, the short answer is yes. Smoking is allowed in open public spaces on the Las Vegas Strip.