AB 2525: San Diego City Council Backs Bill to Protect Mission Bay Park from Housing Development

What Is AB 2525? Understanding the Legislation

Assembly Bill 2525 is state legislation that would exempt lands within Mission Bay Park from certain requirements for the disposal of surplus land—regulations governing how local government agencies sell or lease excess property. The bill addresses a fundamental conflict between two legal frameworks:

• California's Surplus Land Act: Requires local agencies disposing of surplus land to prioritize affordable housing development
• San Diego City Charter Section 55: Prohibits housing development on dedicated Mission Bay Park lands without approval by two-thirds of San Diego voters

According to NBC 7 San Diego, "Converting Marina Village to private residential use would require amending San Diego City Charter Section 55—an action that must be approved by a two-thirds vote of San Diego voters."

By exempting Mission Bay Park from the Surplus Land Act, AB 2525 resolves this conflict and provides clarity that the park's 4,235 acres—roughly equal parts land and water—must remain dedicated to recreational uses rather than residential housing.

Key Provisions of AB 2525

The Surplus Land Act: What Builders Need to Know

Understanding California's Surplus Land Act is essential for anyone involved in development or construction on public lands. The law, significantly strengthened in 2020 through AB 1486, fundamentally changed how local governments must handle underutilized property.

How the Surplus Land Act Works

The Surplus Land Act dates from the late 1960s but was substantially amended in 2020 to address California's housing crisis. According to the California Department of Housing and Community Development, the law requires local agencies disposing of their surplus land to prioritize affordable housing development.

Key requirements include:

• Priority Offerings: Surplus land must first be offered to affordable housing developers, park and recreation agencies, and school districts
• Affordability Covenants: If 10 or more residential units are constructed, at least 15% must be sold or rented as affordable housing
• Expanded Definition: "Local agency" now includes sewer, water, utility, park districts, joint powers authorities, and other entities
• Enforcement Penalties: Violations result in penalties of 30% of final sale price (first violation) or 50% (subsequent violations)

Why Mission Bay Park Became a Flashpoint

In July 2025, the 28-acre Marina Village site became what inewsource described as "the flashpoint over several related issues: a half-century old state law reconfigured to push local governments to build more affordable housing, skepticism over the city of San Diego's real estate dealings, and the future of Mission Bay parkland."

Mayor Todd Gloria's administration initially sought to declare Marina Village and two other Mission Bay properties—Dana Landing and Sportsmen's Seafood—as surplus land, opening them to redevelopment. A development group comprised of Suntex Marinas and the Monarch Group proposed a project that would bring a large hotel, revised marina, and as many as 900 housing units to the Marina Village site.

However, this proposal immediately ran into the San Diego City Charter prohibition on housing in Mission Bay Park. The conflict between state law requiring affordable housing prioritization and local charter protections created legal uncertainty that AB 2525 aims to resolve.

Mission Bay Park: A 4,235-Acre Aquatic Treasure

To understand the significance of AB 2525, it's important to appreciate what's at stake. According to the City of San Diego, Mission Bay Park is "the largest aquatic park of its kind in the country," consisting of over 4,235 acres in roughly equal parts land and water.

Park Features and Recreation

Mission Bay boasts 27 miles of shoreline, 19 of which are sandy beaches with eight locations designated as official swimming areas. The park provides extensive recreational opportunities including:

• Sailing, kayaking, paddleboarding, and windsurfing
• Swimming at eight designated beach areas
• Picnicking in developed areas with facilities
• Walking and cycling on miles of paved paths
• Playgrounds, volleyball courts, and open grass areas

From Tidal Marsh to Recreation Landmark

What's now a premier recreational area has humble beginnings. According to the City's park information, Mission Bay was once known as "False Bay," a tidal marsh that served little recreational purpose. Between the 1940s and 1960s, an ambitious transformation took place, with workers moving 25 million cubic yards of sand and silt to sculpt the landscape that exists today.

The park was dedicated as public parkland in 1962, and the Mission Bay Park Master Plan—most recently revised in 1994—governs how the park's land and water areas can be used. This master plan specifically designates certain areas for recreational-commercial uses like hotels and marinas, but prohibits residential housing.

The City Council Vote: Unanimous Support for Park Protection

On April 21, 2026, the San Diego City Council unanimously voted to support AB 2525, sending a strong signal to state lawmakers that the city stands behind parkland protection. According to Times of San Diego, "The Mayor's office issued a statement saying: 'With the support of the City Council, the Mayor is sponsoring this legislation and appreciates Assemblymember Ward's leadership in authoring it.'"

This unanimous support represents a significant shift. Earlier in 2025, Mayor Gloria's administration had explored declaring portions of Mission Bay Park as surplus land, potentially opening them to housing development. However, intense community opposition and the legal complexities created by the City Charter led to a different approach: state legislation to permanently exempt the park.

Community Opposition That Changed the Trajectory

The path to AB 2525 was shaped by vigorous community advocacy. On August 5, 2025, the Mission Bay Park Committee voted 7-2-1 against the city's surplus-land proposal following extensive public testimony opposing housing development on parkland.

Community leaders like former City Councilmember Donna Frye were instrumental in mobilizing opposition. According to OB Rag, Frye urged residents to "Take Action Now to Support Legislation to Exempt Mission Bay from the Surplus Land Act," arguing that "Mission Bay Park is dedicated public park land" that must be protected for future generations.

Impact on Pacific Beach and Mission Beach Development

For Pacific Beach and Mission Beach property owners, builders, and developers, AB 2525 has several important implications that extend beyond Mission Bay Park itself.

Clarifying the Coastal Development Landscape

Mission Bay Park borders Pacific Beach to the north and Mission Beach to the west. The 4,235-acre park represents a massive portion of the coastal geography, and uncertainty about potential housing development created questions about future development patterns, property values, and neighborhood character.

AB 2525 removes this uncertainty by making clear that:

• Parkland Stays Park: The 4,235 acres will remain dedicated to recreational uses
• No Residential Density Increases: There will be no addition of 900+ housing units along the Mission Bay waterfront
• Commercial Uses Continue: Hotels, marinas, restaurants, and conference facilities remain viable on designated lease sites
• Voter Control Preserved: Any future changes to allow housing require two-thirds voter approval

What This Means for Builders and Contractors

If you're a builder or contractor working in Pacific Beach or Mission Beach, here's what AB 2525 means for your business:

1. Stable Regulatory Environment: The legislation creates certainty around land use in the Mission Bay area, which helps with long-term planning for construction projects in adjacent neighborhoods.

2. Focus Remains on Private Development: With Mission Bay Park protected from housing development, the region's housing needs will continue to be addressed through private development, ADUs (Accessory Dwelling Units), and infill projects in established neighborhoods like Pacific Beach and Mission Beach.

3. ADU and Remodel Opportunities: As coastal San Diego continues to face housing demand without the addition of 900 Mission Bay units, property owners in Pacific Beach and Mission Beach may see increased interest in ADUs, home expansions, and renovation projects to maximize existing residential parcels.

4. Understanding Development Constraints: AB 2525 demonstrates the complex interplay between state housing mandates and local land use controls—knowledge that's valuable when advising clients on coastal construction projects.

Property Value Considerations

While AB 2525 doesn't directly affect private property development rights, it may have indirect effects on property values in Pacific Beach and Mission Beach:

• Park Access Premium: Permanent protection of Mission Bay Park preserves the recreational amenity that contributes to high property values in adjacent neighborhoods
• View Protection: Properties with Mission Bay views won't face potential obstruction from high-rise residential development
• Limited Supply: Without the addition of 900+ housing units in Mission Bay, coastal San Diego's housing supply remains constrained, which may support continued price appreciation

Legislative Timeline and Next Steps

Understanding where AB 2525 stands in the legislative process helps builders and stakeholders know what to expect and when potential changes might take effect.

Timeline of Key Events

What Happens If AB 2525 Passes?

If AB 2525 successfully navigates the legislative process and is signed by the Governor, the practical effects would include:

• Immediate Exemption: Mission Bay Park lands would be exempt from Surplus Land Act requirements
• Lease Certainty: Long-term leases for commercial properties (hotels, marinas, restaurants) could proceed without affordable housing mandates
• Charter Protection Reinforced: San Diego City Charter Section 55's prohibition on housing would be aligned with state law rather than in conflict
• Master Plan Implementation: The Mission Bay Park Master Plan could be implemented without state law conflicts

What Happens If AB 2525 Fails?

If the legislation doesn't pass, the legal uncertainty returns:

• Future lease renewals exceeding 15 years could trigger Surplus Land Act requirements
• The conflict between state and city law would persist
• Any housing development on Mission Bay Park would still require two-thirds voter approval under the City Charter
• Potential litigation over competing legal requirements could delay park improvements and lease renewals

The Broader Context: Housing vs. Parkland Preservation

AB 2525 exists at the intersection of two critical California priorities: addressing the severe housing shortage and preserving public parkland. Understanding this tension provides important context for builders and developers.

California's Housing Crisis

California faces an acute housing shortage, with San Diego particularly affected. According to various housing studies, the San Diego region has a deficit of tens of thousands of housing units, with median home prices exceeding $1.1 million in coastal areas like Pacific Beach.

The Surplus Land Act was strengthened in 2020 specifically to address this crisis by ensuring that underutilized public land becomes available for affordable housing rather than sitting vacant or being sold without housing consideration.

The Case for Park Protection

However, as NBC 7 San Diego reported, community advocates argue that Mission Bay Park serves a different critical need: public recreation and open space in an increasingly dense urban environment.

Key arguments for exempting Mission Bay Park include:

• Dedicated Parkland: The land was specifically designated as park in 1962 and developed with public funds for recreation
• Irreplaceable Resource: Once parkland is converted to housing, it's essentially impossible to reverse
• Voter Intent: San Diego voters approved City Charter Section 55 to protect parkland from conversion
• Alternative Sites: San Diego has other surplus properties more suitable for housing development

Finding Balance

AB 2525 represents an attempt to balance these competing needs by:

• Protecting unique, irreplaceable parkland from housing mandates
• Allowing the Surplus Land Act to continue functioning on other public properties
• Preserving local voter control through the City Charter
• Permitting appropriate commercial uses (hotels, marinas) that serve recreational purposes