City partners with Soul Trust Maine to revive mixed-use Grid project after bankruptcy

In a recent Mesa City Council study session, significant discussions centered around the future of a mixed-use development project known as "The Grid," located at 233 East Main Street. The project, which faced bankruptcy in March 2024, has now transitioned to a new developer, Soul Trust Maine Q O Z B LLC, following a thorough selection process overseen by a bankruptcy court-appointed trustee.

The city of Mesa, as the property owner, played a crucial role in the transition. After the previous developer's bankruptcy, the city ensured that $1.7 million was set aside to cover potential project failures. This financial safeguard allowed the city to complete necessary public improvements, including street restoration and landscaping, following the project's collapse. The city’s proactive measures have been praised as beneficial in negotiating with the new developer.

Soul Trust, which has a proven track record in the area, is now tasked with revitalizing the project. The new development agreement will allow Soul Trust to lease the property during construction, with an option to purchase it at an appraised value of approximately $2.985 million upon completion of each phase. The project is set to unfold in three phases, starting with 76 micro-units and commercial space, followed by townhomes in subsequent phases.

Council members expressed optimism about the new developer's capabilities, citing Soul Trust's ongoing investments in design and engineering for the project. The city anticipates that the development will not only enhance the local economy but also improve the vibrancy of the area, which has struggled with underutilization and safety concerns in nearby parks.

Additional discussions during the meeting highlighted the importance of community engagement and the need for a competitive bidding process for future developments. Council members emphasized the lessons learned from the previous developer's shortcomings and the necessity of thorough vetting for any new proposals.

As the city moves forward with this project, the anticipated benefits include increased housing options, improved public spaces, and a revitalized neighborhood that aligns with Mesa's broader development goals. The next steps involve finalizing agreements and obtaining necessary approvals from the bankruptcy court, paving the way for construction to commence.