The Soccer City redevelopment plan will move forward without the involvement of San Diego State University.
SDSU officials released a statement Tuesday saying the school is no longer in discussions with FS investors to partner on the project.
The site would include condos, apartments, retail and a river park plus a 30,000-seat stadium that had been proposed as a home to a Major League Soccer team and Aztec Football.
The university said that after more than a year of discussions for a fair, equitable, and transparent deal, one could not be reached.
Soccer City spokesperson Nick Stone was quick to respond.
"It's another sad chapter in the saga of departing university leadership moving the goal posts,” Stone said.
"Despite this announcement, we stand ready to work with new leaders at SDSU to support the long term goals of an institution we care about deeply," he said.
SDSU President Elliot Hirshman is leaving in June for another position.
FS intends to submit the plan to the City Council to be placed on the Nov. 7 ballot. From there, Major League Soccer (MLS) will decide whether to bring a team to San Diego.
Proponents have gathered enough signatures to get the Soccer City proposal in front of the San Diego City Council for consideration. The City of San Diego requires signatures from at least 5 percent of registered voters to get to this step. The registrar must also validate those signatures for it to get to the City Council.
The proposal, which is privately funded, is likely to face challenges from other developers and environmental groups.