The Midway Rising project in California could generate almost $7 billion, it is being claimed, amid Arsenal owner Stan Kroenke's involvement.
Kroenke, who owns a number of sports franchises across the globe through his Kroenke Sports & Entertainment empire, has an enormous real estate portfolio that is said to be valued above $2bn.
Last month, it was confirmed that Kroenke had agreed to become the lead investor in a development being led by Midway Rising in San Diego. The project will include the construction of a 16,000-seat arena, a retail area of over 250,000 square feet, a park and hotel.
The announcement of Kroenke's investment had caused some doubts over the decision-making of the project. However, Tara Lewis of the City's Communications Department has provided an insight on how the Kroenke Group's investment will work.
"The addition of the Kroenke Group to the Midway Rising team does not change the terms of the City's Exclusive Negotiation Agreement with Midway Rising that requires the proposed development to include certain elements, at a minimum, including 'replacement of the existing Sports Arena located on the site,'" she said.
"The Kroenke Group is a leading national, privately held real estate developer, investor and property manager, with deep-rooted sports venue development and management experience, and the company's involvement in the Midway Rising redevelopment project represents an exciting opportunity to grow its investment in San Diego and the greater Southern California region," explained the project's spokesperson Jeff Meyer.
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"From a development standpoint, no aspects or details of the team’s project vision have changed. Day-to-day redevelopment operations will continue to be managed by the existing Midway Rising team partners – Zephyr Partners, Legends, and Chelsea Investment Corporation.”
The project has been predicted to provide a number of financial advantages by Jim Anderson, chief development officer for Chelsea Investment Corp. As well as 8,500 jobs, mostly in construction, $7bn will be provided in economic benefits to the California region.
A total of 4,250 places of residency will be made available, of which 2,000 will be affordable for individuals who make 30% to 80% of median County income. The total amount the project will cost is expected to be announced this month as the Arsenal owner looks for a return on a big investment.
Kroenke, who is overseeing a huge transfer window a the Emirates Stadium this summer, is on a role with his sports teams having just seen his Denver Nuggets side win the 2023 NBA championship. The 75 year-old is also relocating his Los Angeles Rams side to a more permanent training base.
