Key facts
- California Governor Gavin Newsom signed two bills, SB 344 and SB 958, to streamline housing development.
- The legislation aims to reduce the impact of lawsuits filed under the California Environmental Quality Act (CEQA).
- SB 344 specifically addresses the $3.9 billion Midway Rising project in San Diego.
- SB 958 statewide prevents added building height from being a primary environmental impact factor for infill projects.
- The Midway Rising project plans to deliver over 4,000 new homes, including 2,000 affordable units.
- Opponents plan to continue their legal and public challenges to the Midway Rising project.
California Governor Gavin Newsom has signed two new bills, Senate Bills 344 and 958, designed to accelerate housing development by limiting the use of environmental lawsuits. These measures build upon previous reforms aimed at reducing regulatory hurdles in a state struggling with an affordable housing shortage.
SB 344 specifically targets the $3.9 billion Midway Rising project in San Diego, which redevelops the Sports Arena site. This bill will halt further challenges under the California Environmental Quality Act (CEQA) once the city certifies the project's environmental review. SB 958, applicable statewide, prevents additional building height from being considered a significant environmental impact for qualifying infill projects.
The legislation was spurred by years of litigation against the Midway Rising project, where opponents like the nonprofit Save Our Access sued the City of San Diego twice. Their arguments, based on CEQA, focused on the alleged failure to adequately study the environmental effects of taller buildings on airflow, traffic, and wildlife. Court rulings had previously invalidated ballot measures that sought to lift the city's 30-foot height limit, threatening the project's taller structures.
San Diego Mayor Todd Gloria, who sponsored the bills along with Senator Akilah Weber Pierson, stated that the legislation provides certainty to move forward with the long-awaited transformation of the Midway District, which is expected to deliver over 4,000 new homes, including 2,000 affordable units, and a new arena.
However, opponents like Everett DeLano, attorney for Save Our Access, view the legislation critically, questioning the irony of using a bill related to human remains disposal as a fast-track mechanism for the project. They plan to continue their opposition, citing concerns about congestion and coastal access, while Point Loma residents also maintain that the environmental report is deficient, particularly regarding traffic impacts.
The Midway Rising project, a 49.2-acre development chosen by the City Council in September 2022, is projected to take 14 years to complete. Billionaire Stan Kroenke became its chief financial backer in 2023. The project's ground lease terms are scheduled for review by a council committee on October 8, preceding the City Council's final certification of the environmental review and approval.