San Diego Mayor Todd Gloria gave his annual State of the City address recently where he laid out several priorities likely of interest to the business community.
The mayor said his top priority this year will be pursuing the Midway Rising project, a mixed-use development that aims to put 4,200 new homes, 14 acres of new parks and a new arena on the existing sports arena site. The project has stalled with a host of legal challenges.
His other priorities included redevelopment in the Civic Center area of downtown, a proposal to spend $118 million over the next five years on modernization and upgrades to the city’s waterfront Convention Center, and continuing with neighborhood growth blueprints.
Question: Are Mayor Gloria’s priorities in 2026 on the right track for the economic health of San Diego?
Economists
James Hamilton, UC San Diego
YES: Mayor Gloria is focusing on the right issues of building more housing, addressing homelessness and addiction, and staying within our budget. I also appreciate his leadership on the Midway Rising project. But I would support stronger efforts to identify the areas in which city spending has skyrocketed and bringing those budget items under control. We also need to focus on the problems we can solve ourselves instead of looking for help from everybody else.
Kelly Cunningham, San Diego Institute for Economic Research
YES: At least in pursuing the Midway Rising project, which exemplifies the incoherent nature of California governance. The state mandates more affordable housing to be built in high-density areas near mass transit lines, yet court actions hinder development from taking place fulfilling the directive. The Sports Arena project, ripe for redevelopment, follows the mandate, and even approved by San Diego City voters twice but stopped by lawsuit technicalities that state law SB 79 was intended to overcome.
David Ely, San Diego State University
YES: For the housing priority. The increase in housing permits, updating of community plans, incorporating housing in the redeployment of surplus city-owned properties, and the Midway Rising project are positive steps in support of new housing production. However, following the restoration of the Midway District’s height limit, this project needs to be put back on track. Also, greater attention on repairing streets, sidewalks and streetlights are welcome steps toward the priority of infrastructure maintenance.
Executives
Phil Blair, Manpower
YES: Being mayor of a large American city is a big challenge. Layer on budget deficits and a lack of support for tax increases. Then, add the influence and volatility of state and federal funding and court decisions, and it’s a real quagmire. Mayor Gloria is focusing on housing, homelessness, safety and development. All the backbone of a healthy economy.
Gary London, London Moeder Advisors
YES: All of those projects are on the right track. But think bigger, Mr. Mayor! Allowing more housing density throughout San Diego would bring in huge new property tax revenues, over time, sufficient to cure fiscal woes. Massive redevelopment of the Civic Center site can change the trajectory of downtown. The Midway Project is the anchor to redefining the Midway District. Try again to lift the height limit and aggressively replan that convoluted neighborhood.
Bob Rauch, R.A. Rauch & Associates
NO: The city’s Economic Development Strategy emphasizes streamlined permitting and support for business expansion; those goals aren’t reflected in the city’s budget priorities. San Diego’s key economic drivers, life sciences, defense and technology, depend on faster permitting, additional lab-ready space, expanded workforce housing and transit improvements. Meanwhile, homelessness continues to worsen. San Diego would benefit from a more assertive pro-business approach like San Francisco’s transformation: reducing regulatory barriers, strengthening public safety and cleaning up the streets.
Austin Neudecker, Weave Growth
YES: Expanding housing, revitalizing the civic area, and upgrading the convention center seem directionally correct. Midway Rising’s 4,200 units and Civic Center area improvements will reinvigorate these neighborhoods adjacent to jobs and transit. Modest convention spending should protect key visitor revenue. The primary risks are execution and litigation, not strategy. I would appreciate intergovernmental alignment to select developers, hold them to milestones, expedite approvals, and handle obstacles to keep projects on track.
Chris Van Gorder, Scripps Health
YES: I think the No. 1 priority needs to be stabilizing the city budget. I’m in agreement with any effort to support business growth in the city, which would increase tax revenues. I have no problem with the Midway Rising project as it adds needed housing and hopefully has a business development component.
Not participating this week:
Jamie Moraga, Franklin Revere
Norm Miller, University of San Diego
Alan Gin, University of San Diego
Caroline Freund, UC San Diego School of Global Policy and Strategy
Ray Major, economist
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