Midway Village+ sports arena plan lands backing from key labor group

San Diego County Building and Construction Trades Council, which represents 30,000 construction workers, has endorsed the Toll Brothers-led team.

SAN DIEGO UNION-TRIBUNE

By Jennifer Van Grove

Jan. 13, 2022 1:03 PM PT

The Toll Brothers-led development team vying for San Diego’s sports arena holdings has signed on an important ally that could help sway city leaders tasked with picking a winning proposal.

Thursday, the San Diego County Building and Construction Trades Council announced a nonexclusive endorsement of Midway Village+, the plan that calls for remaking the city’s 48 acres in the Midway District with thousands of housing units, a new 15,000-seat arena, a 12-acre public park and a home for the San Diego Loyal soccer team. 

The labor organization, which represents 22 local unions and 30,000 construction workers, has also signed a contract with the development team, guaranteeing prevailing wages and providing other job-quality provisions for project workers.

“The Midway Village+ team and plan are truly exceptional,” said Carol Kim, who is the business manager for the council. “The council is very impressed with the team’s vision — one that demonstrates a deep and authentic commitment to generating thousands of high-quality jobs, new affordable housing, inclusive economic development and a community within Midway that truly works for all San Diegans.”

The endorsement comes as San Diego officials weigh their options for the city’s land at 3500, 3250, 3220 and 3240 Sports Arena Blvd. Five teams, including Midway Village+, are competing for a long-term ground lease. They are proposing dense, master-planned communities with an arena, housing, retail, office, park space and, in some instances, additional sports facilities or hotels. Each is also promising to set aside at least 25 percent of housing units for lower-income families. 

The competition, which is still in the early stages, is currently in a state-mandated negotiation period that runs through March 4. Teams are then expected to present their proposals to City Council members.

While not exclusive, the Building and Trades endorsement of the Midway Village+ plan sets a labor precedent and could provide a little political goodwill to the team’s proposal, as city council members often look more favorably on labor-supported deals.

Dike Anyiwo, who is vice-chair of the Midway-Pacific Highway Community Planning Group, said he was not surprised by labor’s endorsement of the Midway Village+ plan.

"(Midway Village+ project executive) David Malmuth and his team have been extremely intentional about taking feedback and guidance from the community,” he said. “It’s clear that the team understands that this development has the capacity to create high-quality jobs both in construction and in programming for the site, as well as a mix of housing types that all San Diegans would be proud to call home.”

The accord between the labor organization and the development team memorializes specific job conditions for tradespeople, most notably guaranteeing prevailing wage. 

Prevailing wages, set by the state, establish specific, minimum hourly rates and employer benefit contribution rates based on job type, and are a requirement of most city construction contracts. The current prevailing wage in San Diego for a forklift operator is $51 per hour for a standard, 8-hour shift with employers also required to pay another $30 per hour in benefit-related wages. 

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