San Diego formally declared the city-owned sports arena property surplus land, restarting the redevelopment process under California's Surplus Land Act.

The designation required the city to give affordable-housing developers an opportunity to compete for the 48.5-acre site. It followed the collapse of an earlier selection process and reopened debate over one of the region's largest public redevelopment opportunities.

The decision set the terms for proposals that would combine housing with a replacement arena, parks, commercial space and new streets in the Midway District.