Mesa Council reviews $6.36M tax incentive for Medina Station retail development

The Mesa City Council held a study session on June 12, 2025, focusing on the proposed development agreement for the Medina Station project. Economic Development Director Jay O'Donnell and Deputy City Attorney Kelly Whittemore presented details about the project, which aims to transform a 64-acre site located north of US 60 and south of East Southern Avenue into a mixed-use development featuring significant retail space.

The development plan includes approximately 228,000 square feet of anchor retail space, with major tenants such as Target, Dick's Sporting Goods, and Boot Barn. Additionally, the project will feature 33,000 square feet of full-service restaurants and over 21,000 square feet of smaller retail spaces, totaling around 328,425 square feet of commercial development. The overall capital investment for the commercial area is projected to be $117 million.

The proposed development agreement includes a retail sales tax incentive, allowing the developer to receive up to $6.36 million in reimbursements for public infrastructure costs. To qualify for these reimbursements, the developer must meet specific conditions, including obtaining building permits within six months and completing public infrastructure within a year. Notably, the agreement stipulates that Dick's Sporting Goods must open within 48 months for the developer to access the tax incentives.

The council discussed the importance of the project in attracting new businesses to East Mesa, an area that has historically struggled to draw major retail and dining options. Developer Josh Simon emphasized the need for incentives to compete with neighboring areas that offer a wider variety of dining and shopping experiences.

The council will review the development agreement further at their next meeting on July 1, 2025, where they will consider a resolution for approval and review an independent economic analysis of the project. This analysis will assess whether the anticipated sales tax revenues will exceed the incentives provided to the developer, a requirement under state law. The outcome of this agreement could significantly impact the economic landscape of East Mesa, potentially enhancing local retail options and generating additional tax revenue for the city.