[{"_1":2,"_111":-5,"_112":-5},"loaderData",{"_3":4,"_26":27},"root",{"_5":6,"_17":10,"_18":19,"_20":21,"_22":10,"_23":-5,"_24":-5,"_25":10},"user",{"_7":8,"_9":10,"_11":10,"_12":-5,"_13":-5,"_14":15,"_16":-5},"roles",[],"isAuthenticated",false,"isPremium","planName","subscriptionStatus","featureFlags",{},"insightsBudget","isDevelopmentHost","userPreferences",{},"recaptchaSiteKey","6LcvOJcUAAAAAHsB-gPGfGktcRlKpH7OTIU_dMTD","isImpersonating","impersonation","affiliateStatus","isFreedomPortal","routes/v2/article/layout",{"_28":29,"_30":31},"notFound",true,"relatedArticles",[32,75,87,99],{"_33":34,"_35":36,"_37":38,"_39":40,"_41":42,"_43":44,"_45":46,"_47":48,"_49":50,"_51":52,"_53":54,"_55":56,"_57":58,"_59":60,"_61":62,"_63":64,"_65":66,"_67":68,"_69":70,"_71":68,"_72":73,"_74":73},"mediaId",6220504,"mediaKeyId","3617300-e3aa85232f0b16794773a5890c88779b","parentId",3617300,"title","Council to Consider Ground Lease and Purchase Option for The Grid on Main After Bankruptcy Sale Approval","audioSeconds",1188,"startMs",73000,"endMs",1261000,"viewUrl","/Search/View?dp=1&key=3617300-e3aa85232f0b16794773a5890c88779b&start=73&end=1261","thumbnailUrl","https://assets.pipeline.soar.com/3617300-e3aa85232f0b16794773a5890c88779b/thumbnail_73000.jpg","articleUrl","/articles/6220504/Mesa/Maricopa-County/Arizona/Council-to-Consider-Ground-Lease-and-Purchase-Option-for-The-Grid-on-Main-After-Bankruptcy-Sale-Approval","mediaUrl","https://secure.pipeline.soar.com/6220504-9254d68a0bf46891ed0bbdabca74649b/orig.mp4?Expires=1776580247&Signature=ErSj9RmBSKMO-b3FsZK2QY55hz6EWDkumuhN9v8n9b~p~~Z4x226Y2Q9M5hzdgk4KxDFLdiNEFNGTGuX5aqtXkgDe~GeaJC1dYTXjUORjJeGjP-95EV99CnCDGMGSD4X2K1sxrkfmWat4GpmjoKPwI7NVv3dodulU19ZF4aSBNwJ5x11podPp6GUNrlIIuTqIy~QqiVHQ6F5ku3v3bJqn-FoHXXNUmBCegsoYYPbI-Ut27zflx9uxzQxboLXDrpVDDdk8caDnJIh9OewAtu2DhTwlqt0gF4W0uELDNumGHlRTtX2mPw0MiRGbPsBUrReYSqaFmC8y9Am8-g~5vxGzQ__&Key-Pair-Id=KUT5TJCACFTXG","author","Mesa City, AZ ","date","2025-05-29T17:34:18Z","article","City staff briefed the Mesa City Council on May 29 on proposed ground-lease and purchase documents that would follow the bankruptcy-court-approved sale of The Grid on Main to developer SoulTrust and would be presented for council action at the June 2 meeting. Jeff McVeigh, manager of urban transformation, said the bankruptcy court approved the sale last week but the sale is contingent on council action on Monday.

The matter matters because the developer proposes to finish a partially completed mixed-use building downtown, triggering deed restrictions, parking licenses and city-funded electric work. If the council approves the lease and option to purchase, city staff said, SoulTrust would complete phase 1 under a construction schedule and then have a limited window to close on purchase of that parcel; phases 2 and 3 remain subject to amendment based on future feasibility and density studies.

McVeigh outlined the city’s role and what the proposed agreements would require. The lease would cover three project parcels labeled phases 1 through 3. Phase 1 is the existing building; phase 2 is the dirt lot between phase 1 and the garage; and phase 3 is a narrow strip wrapping the Palmer Garage. Under the proposed agreement, SoulTrust must complete phase 1 construction within nine months of lease execution and then has six months after completion to close on purchase of the phase 1 parcel. If the phase 2 amendment is not completed by the phase 1 close date, phases 2 and 3 would revert to the city and the city could seek other developers.

McVeigh said the lease contemplates flexibility for phase 2 and phase 3: the MOU originally envisioned lower-density townhomes for phase 2 (12 units), but that plan “does not support or justify” the purchase price established by the city appraisal. The lease allows future amendments to increase density, heights and unit counts for phases 2 and 3 to achieve feasibility; the city manager would have authority to approve such amendments without returning to council, according to McVeigh.

Financial terms flagged in the briefing included a nonrefundable deposit required at lease execution, described by staff as $2,285,000, and a stated need to offset approximately $283,000 of unfinished electric work the city must complete to serve phase 1. McVeigh also said the city previously received $1,700,000 that had been escrowed to restore the site if the original developer failed; that restoration work is complete and Main Street and Pomeroy are open.

Staff described a construction-lease rate of $5,000 per phase during construction (below market) intended to reflect the city’s decision not to transfer fee title until completion. McVeigh also described a parking license for use of Pomeroy Garage spaces tied to each phase: phase 1 would require a minimum of 76 spaces (about one space per unit) with a maximum of 1.5 spaces per unit; phase 2 (as proposed assuming a 12-unit townhome product) would require a minimum of 24 spaces. The parking license term would be 50 years with an initial 10-year rate of $10 per space per month, then switching to whatever council-adopted rate applies (staff noted the current adopted rate is $45 per space per month).

Staff said the city will complete electric infrastructure work estimated at about $283,000 to serve phase 1; those transformers and primary feed lines will also serve later phases. McVeigh reported the city held roughly $774,000 in monetary claims against the bankruptcy estate (including about $500,000 for public electric infrastructure work) and that the settlement package resolved most subcontractor claims and required dismissal, with prejudice, of lawsuits against the city arising from the project as part of the bankruptcy resolution.

Council members asked for timing guardrails for phase 2. Council member Adams asked whether completion would be defined by certificate of occupancy; staff confirmed it would. Adams also asked about force majeure clauses addressing supply-chain or labor disruptions; McVeigh said modern lease forms now address broader force majeure risks. Council member Duff and others emphasized speed but also urged realistic timing given market conditions; staff said SoulTrust has signaled it wants to open a ground-floor restaurant tenant (Crest Italian eatery) and target an October opening for the restaurant.

At the study session no formal council action was taken; staff asked council to consider the lease and related resolutions at the June 2 meeting. The lease and option to purchase will be presented to council for approval on Monday, June 2, or the bankruptcy sale will not proceed under the trustee’s current order, staff said.

Sources: Presentation to Mesa City Council study session, May 29; remarks by Jeff McVeigh, manager of urban transformation; follow-up questions from council members.","mediaType","Video","parentTitle","Council Study Session - 5/29/2025","oneSentenceSummary","City staff briefed the Mesa City Council on May 29 on proposed ground-lease and purchase documents that would follow a bankruptcy-court-approved sale of The Grid on Main to developer SoulTrust and are scheduled for council action June 2.","taxTitle","Mesa, Maricopa County, Arizona","taxId",2210,"location","headline","","shortSummary",{"_33":76,"_35":36,"_37":38,"_39":77,"_41":78,"_43":79,"_45":80,"_47":81,"_49":82,"_51":83,"_53":84,"_55":56,"_57":58,"_59":85,"_61":62,"_63":64,"_65":86,"_67":68,"_69":70,"_71":68,"_72":73,"_74":73},6220490,"Mesa Plans $3 Million in Initial Opioid-Settlement Spending; $1 Million Set for Community Grants and $1 Million for Prevention Campaign",472,2768000,3240000,"/Search/View?dp=1&key=3617300-e3aa85232f0b16794773a5890c88779b&start=2768&end=3240","https://assets.pipeline.soar.com/3617300-e3aa85232f0b16794773a5890c88779b/thumbnail_2768000.jpg","/articles/6220490/Mesa/Maricopa-County/Arizona/Mesa-Plans-3-Million-in-Initial-Opioid-Settlement-Spending-1-Million-Set-for-Community-Grants-and-1-Million-for-Prevention-Campaign","https://secure.pipeline.soar.com/6220490-2090dd0e94281dbbf742d53cea18cb98/orig.mp4?Expires=1776580247&Signature=BtiQHUbvkHNf5phjP3dPcdDz9pqlJEo822q9-Dc2lR7mlflAn8nt85QldzCRr5hDXxwiiQUAItoGigRb6C4Z~JrycH3kRqNwkuyve2o93420t24VZbtkmP6dosrX7j5dB0UGJEzfDkaXeKOT34MX1q4-f-H03a3cBYflWhFPL9sRaibyvw290cYaNa2bmfW8XOAzUo5Eedj~gWtISe4p9GGeFIDh6M04PNpe~7lJqiqM8TZPDs7Hi2FDozbNpKdXOsQYCFn2nIakojXeenZOvq~-UfiGqAs5didpBvJtSvET-2UD78Zp1al~VQNvLpgjVFFN8DAJk1T~C-kT7qs1xg__&Key-Pair-Id=KUT5TJCACFTXG","Mesa staff presented proposed uses of opioid-settlement funds at the May 29 study session, recommending an initial phase focused on prevention, public-safety support and community grants. The city has received $4.5 million to date under the statewide opioid settlements and is proposing to allocate $3 million in the near term: $1 million for a citywide education and outreach campaign focused on youth, $1 million for public-safety opioid-related initiatives, and $1 million for a community-grants program to fund nonprofit prevention, treatment and recovery services that serve Mesa residents.

Lindsay Balenke, deputy director of community services, said settlement funds flow from national settlements into Arizona, then to Maricopa County; Mesa’s share of the county distribution is 6.06 percent. Balenke said the county has provided a needs assessment and that Mesa staff coordinated with the county and regional stakeholders to avoid duplicating services.

Diana Lopez, a city human‑services coordinator, described the community‑grants process. Staff opened a notice of funding availability in February, received 27 applications and invited 26 eligible applicants to present in April; total requests exceeded $4 million. Lopez said staff are recommending funding for programs in three focus areas: neonatal care, school‑based prevention and community‑based prevention and recovery services. Recommended awards (one‑year grants) include Jacobs Hope ($215,000) and Hushaby Nursery ($100,000) for neonatal-family supports; Community Bridges ($193,226) and The Be Kind Project ($15,000) for school‑based resiliency programs; and Big Brothers Big Sisters ($100,000), Boys & Girls Clubs of the Valley ($83,862) and Not My Kid ($100,000) for community‑based programming. Lopez said awards were selected for alignment with stated priorities, existing capacity and geographic coverage across Mesa.

On prevention and outreach, staff described a planned digital education campaign targeted at K–12 students, parents and postsecondary audiences using existing platforms and partnerships with Mesa Public Schools, Mesa community colleges, Benedictine and Arizona State University. Staff said they would develop age‑appropriate digital content over the summer and aim to launch in fall 2025.

For public safety, staff said Mesa Police Department plans to purchase a drug incinerator and a body scanner and is exploring other options; specific public‑safety program details will be returned to council when available. Lopez said the grants will be one‑year awards, agencies were informed they cannot assume continued funding beyond the contract term, and staff will require reporting to measure outcomes. Council members emphasized the importance of evaluation, Narcan availability and coordination with schools and colleges; staff said Narcan distribution and training are already integrated into some programs and that Mesa Fire Medical and police carry Narcan operationally.

Staff requested council direction to proceed with the recommended awards and for a June 2 resolution to authorize distribution of funds to the nonprofit grantees; contracts would be executed in June if council approves.","Mesa staff proposed a phased use of opioid‑settlement funds at the May 29 study session, recommending $1 million for youth-centered outreach, $1 million for public-safety initiatives and $1 million for a community grants program focused on prevention and recovery.",{"_33":88,"_35":36,"_37":38,"_39":89,"_41":90,"_43":91,"_45":92,"_47":93,"_49":94,"_51":95,"_53":96,"_55":56,"_57":58,"_59":97,"_61":62,"_63":64,"_65":98,"_67":68,"_69":70,"_71":68,"_72":73,"_74":73},6220494,"Mesa Proposes No Change to Secondary Property Tax Rate; Median Homeowner Increase About $8",743,3865000,4608000,"/Search/View?dp=1&key=3617300-e3aa85232f0b16794773a5890c88779b&start=3865&end=4608","https://assets.pipeline.soar.com/3617300-e3aa85232f0b16794773a5890c88779b/thumbnail_3865000.jpg","/articles/6220494/Mesa/Maricopa-County/Arizona/Mesa-Proposes-No-Change-to-Secondary-Property-Tax-Rate-Median-Homeowner-Increase-About-8","https://secure.pipeline.soar.com/6220494-1e12e494035bcd93e6213b67498069bc/orig.mp4?Expires=1776580247&Signature=KYHu0UQqXu1MxXR~ViSnW4u6AlpnpgQAAxraJQepHcSqe75W3BzC1nqC7dX1Z~yzbp~Rt-3zsUiJbx4Cp4okoThTTiEIJUHTvTW5K6quAx7ybKy~J00cMKzbfr-X848fHIBYQ-O3Syo7SyLkEX7s4tJiyeHii1xVfdFhJ0PsrdJAlWAnH0JkeIU-HWJO0nh3ARTKum3F-pXmHa2HBXfNMUuMZp1v7c5iD9JX7DO-U72dtXXCtl1cz3ueG52MnVvzn3cXMxexFM2ddzcf5oyqXee8hYt1HlFDcBvJi6e9IRilmFG8XqdEbJWaiX~oEfOyX8S8rswSnnj2F7UfaUayuw__&Key-Pair-Id=KUT5TJCACFTXG","The city presented its proposed secondary property tax levy for fiscal year 2025–26 at the May 29 study session and recommended maintaining the current secondary property tax rate. City Treasurer Mark Hoot told council the proposed unchanged rate would result in a levy of about $44.3 million and would mean an estimated $8 annual increase in the secondary property tax cost for the median Mesa homeowner.

Hoot said the city’s total taxable property value increased about 5.5% this year to roughly $52 billion (limited property value used for levy calculations), and he explained the difference between limited property value — the statutory taxable value that generally may not rise more than 5% per parcel per year — and full cash value, which reflects market value and establishes long-term capacity. He noted the limited property-value growth arises from both new property added to the tax rolls (about 44% of the increase) and appreciation of existing property (about 56% of the increase).

The treasurer’s presentation reviewed bond-authorized uses of the secondary property tax (voter-approved general obligation bonds for public-safety and parks/culture projects) and a 10-year history of Mesa’s taxable values. Hoot said the proposed levy and unchanged rate reflect the city’s plan to smooth levy requirements over time to fund debt service for voter-approved projects; the city intends to consider final adoption of the levy at a June public hearing and a subsequent formal levy adoption two weeks later.

Council members asked clarifying questions about how the rate is derived and what the median homeowner figures represent. Staff said the $160 annual cost to the median homeowner is based on the parcel’s limited taxable value and noted that last year’s comparable figure was $152. City staff also said the tax rate has been steady for several years and that using increased limited values can allow the city to hold the rate steady while generating the needed levy for debt service.

No formal approval of the levy occurred at the study session; staff said a public hearing on the budget and property-tax levy will be on the June 2 council meeting agenda, with final levy adoption expected two weeks later.","City treasurer presented fiscal-year-2025–26 secondary property tax proposal: no change in tax rate, projected levy of $44.3 million, and an $8 annual increase for median homeowner driven by rising taxable values and new property additions.",{"_33":100,"_35":36,"_37":38,"_39":101,"_41":102,"_43":103,"_45":104,"_47":105,"_49":106,"_51":107,"_53":108,"_55":56,"_57":58,"_59":109,"_61":62,"_63":64,"_65":110,"_67":68,"_69":70,"_71":68,"_72":73,"_74":73},6220499,"Mesa to Adopt PSPRS Funding Policy Aimed at 25-Year Amortization, Stable Annual Contribution",1182,2146000,3328000,"/Search/View?dp=1&key=3617300-e3aa85232f0b16794773a5890c88779b&start=2146&end=3328","https://assets.pipeline.soar.com/3617300-e3aa85232f0b16794773a5890c88779b/thumbnail_2146000.jpg","/articles/6220499/Mesa/Maricopa-County/Arizona/Mesa-to-Adopt-PSPRS-Funding-Policy-Aimed-at-25-Year-Amortization-Stable-Annual-Contribution","https://secure.pipeline.soar.com/6220499-ee56c712108a94fb32dcdd219384f554/orig.mp4?Expires=1776559375&Signature=Mp~GKm~VW0DPo2KVDkpr3Yd0agch9fmUqBtshOes8NnNoQeF1wOQ3AxgtWFMTJ6ZzSYOWe-vLDg7llB62eoMkX3OA83uDgBYxv3N47r1nbzJI79R-6lZADXhF9zlIMBmJGPFEaQUmG6lllhUqXXnuuAZziqYWMAkXMAb6lGlprLlgvRvYh3Q7XCJFnOX1X0B2sAkgixP48Ixr3g10igoPSw8~pdS3pw15NHAXjzqoxUEpLBVq-Pd2cMKI-TtAleAn~DqO5kXdnNKxvoncH-KJ5qrPnVHyuC~R9HgLNH79OjQzm964jdQeU9Jw0zYErgOhKnQRgp9K9xXlDdRsBo3Qg__&Key-Pair-Id=KUT5TJCACFTXG","Mesa staff presented an annual update on the Public Safety Personnel Retirement System funding policy at the May 29 study session, urging council to adopt a policy to stabilize contributions, meet actuarial requirements and reach full funding of the city’s tier 1 and tier 2 PSPRS liabilities by June 30, 2042.

Sam Schultz, assistant director with the Office of Management and Budget, told council the city had chosen a 25-year amortization schedule for tier 1 and tier 2 liabilities and is pursuing a stable contribution approach that front-loads funding to earn investment growth earlier. The city also plans to cap a pension stabilization reserve at $20 million, which staff expect to reach in fiscal 2025–26.

Staff described three funding strategies: stabilizing contribution levels (a roughly $102–$103 million annual contribution in the FY25–26 budget projection), using the marijuana excise tax revenue (about $3.7 million projected this year) toward the contribution, and maintaining the $20 million pension stabilization fund as a reserve to absorb actuarial shocks or investment shortfalls. Schultz and other presenters said these measures aim to reduce volatility in the city’s required annual contributions while meeting the actuarial required contribution each year.

Schultz explained that the city’s PSPRS exposure stems from legacy tiers established before the 2017 Tier 3 reforms; the presentation focused on tier 1 and tier 2 unfunded liabilities. Staff noted the PSPRS board lowered its assumed investment return (discount rate) from 7.3% to 7.2%, which raised liabilities even without local contribution changes, and staff said Mesa’s approach is conservative and designed to meet the state’s amortization timelines.

Council members asked about implementation details. Council member Adams asked whether the PSPRS board — not the city — makes investment decisions; staff confirmed the PSPRS board sets investment policy and contracts with consultants, and municipalities do not control those investment decisions. Several council members thanked staff for building a stable contribution into the city forecast and for creating the stabilization fund. Staff said they will post the adopted policy online and notify PSPRS that Mesa has accepted its assets and liabilities under the chosen funding approach.

Staff requested formal council action to adopt the funding policy at the June 2 meeting; no vote was taken at the study session.","City staff urged council to adopt a public-safety pension funding policy for Tier 1 and Tier 2 liabilities that locks in a stabilized annual contribution and builds a $20 million pension stabilization fund; staff said the plan aims for full funding by 2042 under a 25-year amortization option.","actionData","errors"]

Article not found

Council to Consider Ground Lease and Purchase Option for The Grid on Main After Bankruptcy Sale Approval

Mesa Plans $3 Million in Initial Opioid-Settlement Spending; $1 Million Set for Community Grants and $1 Million for Prevention Campaign

Mesa Proposes No Change to Secondary Property Tax Rate; Median Homeowner Increase About $8

Mesa to Adopt PSPRS Funding Policy Aimed at 25-Year Amortization, Stable Annual Contribution