ASU proposes converting downtown Mesa post office into Creative Technologies hub; council asks for lease and ROI details
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Summary
ASU and city staff presented a feasibility concept to reuse Mesa's downtown post office as an ASU Creative Technologies facility; staff estimated conversion costs at about $25 million (plus a $5 million infrastructure placeholder) and proposed negotiating lease terms with ASU and USPS; council asked for lease terms, revenue comparisons and a clear ROI before approving commitments.
Arizona State University and Mesa staff presented a plan Feb. 23 to convert the downtown post office into an ASU Creative Technologies facility and to build a new standalone retail post office on the property.
Rick Namark of ASU described programmatic needs and campus outcomes: "We set a collective goal of having 750 students engaged at the center within 5 years... On a weekly basis, we have actually around 1,500 students at the mix," Namark said, citing Mix Center enrollment and community use as evidence of demand.
Staff presented cost estimates: "design and construction costs for a new standalone retail post office is approximately $3,400,000 and design and construction costs for ASU creative technologies... is approximately $25,000,000," staff said, noting a conservative $5,000,000 placeholder for potential public infrastructure work.
Council members pressed for baseline financials and comparatives. Council Member Taylor asked for historic lease revenue and current lease terms; staff said the city's current annual lease with the postal service is about $450,000 and that ASU pays roughly $100,000 annually for the Mix Center lease. Council member Adams emphasized the need to quantify return to taxpayers: "When we consider using taxpayer dollars... what's the return on investment?" he said.
Timing: staff said the current USPS lease terminates on 05/31/2028 and that design and preliminary work could be done beforehand so construction could begin promptly after termination; renovation of the existing building is estimated at 18 months to two years once construction begins.
Next steps: staff sought direction to negotiate lease terms with ASU and the United States Postal Service and to return to council within six months with detailed cost‑share proposals and ROI analysis.
Ending: Council gave direction for staff to proceed with negotiations and to bring back financial details before any binding commitments.
