The city council has chosen seven applicants to move on to the second phase of the City of Village's Pilot Village program, which aims to integrate housing, retail, jobs, schools and civic uses into communities with easy access to transit. Applicants participating in the second stage are required to submit a more detailed project proposal and implementation strategy by October 2003. Those proposals will then be reviewed by the city staff, which will then pass them on to San Diego's Planning Commission for consideration and recommendations. The winners are expected to be chosen in early 2004 and will go on to become actual pilot village demonstration projects. Implementation and building of the winning projects will take approximately three to five years.

The applicants that have been chosen to participate in the second stage of the Pilot Villages program are: Mi Pueblo by The San Ysidro Partnership, Mid-City Transit Interchanges Project by El Cajon Boulevard Business Improvement Association, Morena Vista Shopping Quarter by Linda Vista Civic Association/Linda Vista Community Planning Committee, The Edge! by American Assets Inc., The Paseo by the San Diego State University Foundation, and Village Center at Euclid and Market by Euclid & Market Partnership.