Mesa staff outline proposed Medina Station development agreement, $6.36 million tax reimbursement for anchors and restaurant row

City staff told the Mesa City Council study session Thursday that a proposed development agreement for the Medina Station commercial project would reimburse up to $6,360,000 of city sales tax revenue to the developer for public infrastructure if a set of milestones are met.

The agreement would apply only to the roughly 40‑acre commercial portion of a larger 64‑acre Medina Station site north of U.S. 60 and south of East Southern Avenue at Signal Butte Road. Jay O’Donnell, Mesa’s economic development director, said the commercial build‑out envisions about 328,425 square feet of retail including anchors such as Target, Dick’s Sporting Goods and Boot Barn, roughly 33,000 square feet of full‑service restaurant space and additional inline and pad retail.

City Attorney Deputy Kelly Whittemore said the reimbursement is split into two types. A one‑time construction sales‑tax reimbursement would return 100% of the city’s non‑dedicated 1.2% sales‑tax share collected from the project from the DA effective date through 60 days after Dick’s opens, provided the developer meets five conditions precedent. Separately, a retail sales‑tax incentive would return 50% of that non‑dedicated 1.2% for up…