AB 2525: San Diego Lawmaker Moves to Block Housing in Mission Bay Park

What AB 2525 Does

The legislation would exempt from the Surplus Land Act all property included in the Mission Bay master plan, which encompasses more than 4,200 acres of public parkland bordering Pacific Beach and Mission Beach. Ward, who represents the 78th Assembly District, introduced the bill to "protect the public tidelines from undue development," according to reporting from the San Diego Union-Tribune.

The bill is awaiting referral and could be set for a committee hearing as soon as March 23, 2026.

Understanding the Surplus Land Act

California's Surplus Land Act (Government Code Sections 54220-54232) requires local agencies to offer surplus property first for affordable housing development before selling to other buyers. When a property is designated as surplus land, agencies must:

• Provide written notice to housing sponsors and public entities
• Give priority to entities proposing affordable housing
• Require at least 25% of units be affordable to lower-income households
• Wait for review from the California Department of Housing and Community Development (HCD)

This creates a pathway for housing development on public land—precisely what AB 2525 aims to prevent for Mission Bay Park parcels.

Commercial Parcels Affected

Three commercial parcels totaling approximately 28 acres have been at the center of recent redevelopment discussions: Marina Village (about 23 acres), Dana Landing (roughly 4.5 acres), and Sportsmen's Seafood (about 0.8 acres). These aging properties in southwestern Mission Bay Park could potentially be redeveloped, and the city has sought surplus land designation to renegotiate leases—typically required for hotel developments that need decades-long leases to secure financing.

If AB 2525 passes, these parcels would be steered toward hotels and conference facilities envisioned in the park's master plan rather than residential housing.

Implications for Pacific Beach and Mission Beach Builders

Mission Bay Park is bordered by Pacific Beach to the north and Mission Beach to the west. According to Wikipedia, the 4,235-acre park sits south of Pacific Beach and directly borders Mission Beach along its eastern edge.

For builders and developers in Pacific Beach, Mission Beach, La Jolla, Bird Rock, and Tourmaline areas, AB 2525 represents a clear policy direction: commercial and recreational uses will take precedence over residential development on Mission Bay Park parcels. This removes potential housing development opportunities but confirms the master plan's vision for hotels and public recreation.

Supporters say the change would preserve public recreation space. Housing advocates may view it differently, seeing the exemption as foreclosing affordable housing opportunities on public land during California's ongoing housing crisis.

What's Next

Builders and stakeholders should monitor the bill's progression through the Legislature. The potential March 23, 2026 committee hearing represents the first formal review. Community groups and City Council members have signaled they will press for robust public hearings if the bill advances.

For Pacific Beach and Mission Beach construction professionals evaluating project pipelines, AB 2525 clarifies that Mission Bay Park redevelopment will focus on hospitality and recreation—not residential housing—if the legislation becomes law.