Mesa council hears Cul De Sac plan for Site 17; staff directed to finish purchase and development agreements

Cul De Sac, a developer best known for its Tempe project, presented a multi‑phase plan March 6 to redevelop Site 17 — a roughly 25‑acre city‑owned parcel at the southwest corner of University Drive and Mesa Drive — and Mesa City Council directed staff to finish the purchase and development agreements and bring them back to council for approval this spring.

The project team described a mixed‑use plan that would build as many as 1,000 residential units across the full Site 17 project with 25,000–50,000 square feet of retail and roughly the same amount for resident amenities. Phase 1 would include 40 for‑sale townhomes adjacent to the Wilbur neighborhood, about 800–1,000 parking spaces across the site and publicly accessible open space. The developer and staff said the approximate purchase price shown for phase 1 is $2,740,000 (amount will change as parcel boundaries are finalized) and that two independent appraisals of the full site produced different numbers used in negotiation.

Why it matters: Site 17 has been under city discussion and multiple solicitation efforts for decades. The council and staff framed the proposal as an opportunity to add for‑sale housing downtown, activate retail, and fund public improvements, while emphasizing protections for the adjacent historic neighborhood and a multi‑stage sale structure intended to reduce the city’s financial risk.

Cul De Sac cofounder Ryan Johnson told council the developer’s approach emphasizes “community, mobility, and open space,” describing how the company’s Tempe project used live‑work retail and plazas to attract both residents and visitors. City staff said the proposal is a three‑phase purchase and development structure: the city would sell parcels in stages and require entitlements and building permits for each phase before closing on the land. Under terms described in the presentation, Cul De Sac would have about 24 months after executing a phase purchase agreement to close on the land and then 12 months after closing to commence construction on that phase.

Key deal points and conditions discussed

- Phasing and purchase price: Staff said the phase‑1 purchase price is currently estimated at about $2.74 million; final numbers will be based on parcel boundaries and an agreed appraisal method (staff proposed using one of the existing appraisals or a blend with a CPI adjustment for later phases).

- Minimum project commitments: The development agreement would require a minimum of 1,000 units across the…