San Diego is currently grappling with a critical need for more housing, but local officials are fighting to ensure that a prized piece of the city’s waterfront remains undeveloped. City leaders are now enlisting state assistance to ensure that housing development off Mission Bay Park does not become a reality, as they seek a legislative workaround to protect the public space while still allowing for commercial revitalization.
At the center of this effort is Assembly Bill 2525, introduced by Assemblymember Chris Ward. The legislation, which is currently moving through the California State Legislature, aims to exempt the city-owned Mission Bay Park from the state’s Surplus Land Act (SLA). If passed, the bill would protect more than 4,200 acres of land within the Mission Bay master plan from the requirements of the state law introduced on February 20.
The tension arises from a desire to modernize aging infrastructure without triggering state mandates that prioritize residential construction. Mayor Todd Gloria has identified several areas in need of redevelopment, including the Marina Village Conference Center—which is described as having a “ragged roof” and “broken beams”—as well as the Dana Landing Marina and the land surrounding the Sportsmen’s Seafood Restaurant on Quivira Road.
The city’s strategy shifted after a previous attempt to use the Surplus Land Act to renegotiate leases sparked significant backlash. Under the SLA, public property deemed “surplus” must first be offered for affordable housing. This created a legal vulnerability that local leaders and environmentalists feared would lead to high-density residential projects on protected parkland.
The Conflict Between Housing Mandates and Park Preservation
The Surplus Land Act was amended in 2020 to aggressively promote homebuilding by requiring that unneeded public property be made available for affordable housing according to legislative records. While this policy serves a statewide goal, San Diego leaders argue This proves incompatible with the specific legal status of Mission Bay Park.
Mayor Gloria previously proposed using the SLA to facilitate the redevelopment of commercial properties, but the idea was dropped after it became clear that housing developers would be given first priority. This risk was not theoretical; the city has already received an offer to construct 900 homes on the property, a proposal that the mayor and community members have resisted.
The legal hurdles are substantial. Mayor Gloria’s office noted that converting Marina Village to private residential use would require an amendment to City Charter Section 55, a move that necessitates a two-thirds vote of San Diego voters—an outcome the Mayor’s office describes as neither feasible nor supported by the community.
Revitalizing Waterfront Commerce
While the city is adamant about blocking residential “people warehouses,” as one local manager described them, there is strong support for commercial modernization. The goal is to replace decaying structures with new retail stores, restaurants and business areas that maximize public enjoyment and economic vitality.
On March 6, 2026, the City of San Diego issued a request for proposals (RFP) specifically targeting the lease, renovation, and operation of two key waterfront properties as reported by Inside San Diego:
- Dana Landing: Located at 2630 Ingraham St., this site includes a marina facility, retail space, and a 152-space parking area. The city is seeking an operator to enhance the four on-site buildings and develop a one-acre parcel at the northern boundary.
- Quivira Way Restaurant: The city is seeking an innovative operator to modernize the restaurant located at 1617 Quivira Way, which features outdoor dining and a boat dock with 17 slips.
Local business stakeholders, such as Robert Newton, a manager at Dana Landing Market for over a decade, have expressed support for this commercial-only approach. Newton has stated that the area is a designated aquatic park and should remain an open space, asserting that residential homes have no place in the park.
What This Means for San Diego’s Urban Planning
The battle over Mission Bay Park highlights a broader struggle in California urban planning: the collision between urgent statewide housing quotas and the preservation of historic or environmental public assets. By seeking a specific legislative exemption via AB 2525, San Diego is attempting to carve out a “special statute” for the park.
For the global business community and urban developers, this case underscores the importance of local charter protections and the volatility of state-level land-use mandates. The outcome of AB 2525 will determine whether the city can successfully modernize its waterfront economy without compromising the land’s status as a public recreational resource.
Key Takeaways of the Mission Bay Proposal
- The Goal: To redevelop aging commercial sites (Marina Village, Dana Landing, Quivira Way) without allowing residential construction.
- The Legal Hurdle: The state’s Surplus Land Act (SLA) prioritizes affordable housing for surplus public land.
- The Solution: Assembly Bill 2525, which would exempt the 4,200+ acres of Mission Bay Park from the SLA.
- The Risk: Without the exemption, the city could be forced to accept housing projects, such as a previously proposed 900-home development.
The next critical steps for the proposal are immediate. The San Diego City Council is scheduled to vote on a resolution this Tuesday, April 14, 2026, to formally declare the city’s support for AB 2525 per recent reports. Following this, the bill will face its first state committee vote in Sacramento on Wednesday.
We invite our readers to share their perspectives on the balance between urban housing needs and public park preservation in the comments below.