OPENPUBLICA · PUBLIC MEETING RECORD
Record of Proceedings

Mesa City Council Study Session – October 2, 2025

Council Study SessionsThursday, October 2, 2025
BodyMesa, Arizona
SessionCouncil Study Sessions
DateThursday, October 2, 2025
StatusFILED
Video Record

STREAMING COPY IN PREPARATION — RECORDING AVAILABLE FROM THE ORIGINAL SOURCE

Transcript — Verbatim
0:01

Good morning.

0:04

Welcome to the Mesa City Council study session for October 2nd, 2025.

0:10

Most of our council are present.

0:17

So he is excused for this meeting today.

0:20

Other all other council members are present.

0:22

Item number one on the agenda today is to review and discuss items on the agenda for October 6, 2025.

0:36

And while we while you do that, I see we have three E as a recommendation from denial on a uh liquor license.

0:43

Yeah, Vice Mayor and Council, why don't we have Leanne come up?

0:46

There's been some procedural changes at the state that may lead you to see more recommendations for denial, but Leanne can talk through that and tell you why you may be seeing more of those.

1:04

Good morning, Vice Mayor Council.

1:06

We do have one for denial.

1:08

Um this time we're expecting them to withdraw because the liquor license applicant is a different entity than who is operating here in Mesa with all their other licenses and permits.

1:20

We're trying to get it cleared up, but they haven't had a chance to yet.

1:24

And they've told us they were gonna withdraw this.

1:26

They haven't as of today.

1:28

So it is still up for denial for this one.

1:32

In addition, the reason why we're seeing more of initially incomplete information, possible denials when it's initial on your um the agendas is because the Arizona Department of Liquor Licenses and Control, which is known as the DLLC, in the past has allowed us to request a up to six month extension on allowing the applicant to get us the information that we require.

2:02

Currently, the it provides a 60 days only, and they're holding us to the 60 days.

2:08

Okay, does that change anything for the from a council's perspective?

2:12

Other than we're gonna probably see more denial.

2:15

Yeah, and more that might start as a denial and flip and if they get it into us by the day of canceling.

2:21

Once they fix it.

2:22

Yeah, so you'll just see more inconsistency on that.

2:24

I thought I saw an earlier um version of our agenda where 3G was a denial too.

2:30

Did that work through its process or is that a very that could very well be the case, especially when we do get you the agendas so early?

2:38

Sometimes you'll see, you know, when it's 10 days before the actual meeting, uh Leanne and her office will be.

2:44

Which I very much appreciate, but I know you do.

2:47

So uh that that is one of the one of the things that represents a bit of a challenge because you you see a lot of movement in those items over the that 10 day period.

2:56

So yeah, but however, 3G is good to go.

2:58

They have provided us everything.

3:00

And that's what I would expect for the most of these when they if they're missing the paperwork, don't check all the boxes, they're gonna get a recommendation denial that they can fix.

3:08

Yes.

3:08

As they go through.

3:09

It was just odd because Walmart failing to get their boxes checked in time is a little odd.

3:15

That's why they had an outstanding bill of us.

3:18

Clearly, they have gotten it together already.

3:20

They're just a little late.

3:22

So uh, yeah, and we do make uh constant connection with these applicants to encourage them and what they need to do from all the different departments.

3:33

So that's fantastic.

3:36

That's good to know.

3:37

Clearly, it won't change it from our perspective, and sounds like we'll just be able to get those fixed before they get to the state board.

3:44

Yes.

3:46

Uh any items, yes, ma'am.

3:49

Um, I just have like some pretty simple quick questions, but that I wasn't able to call and talk to the right person yesterday.

3:57

But on 4C.

3:59

So I don't know if who's here from Arts and Culture.

4:02

I was just wondering.

4:04

Um, this is probably just more of a matter of I don't know how things work, but I feel like the um the shows that come to the Mesa Arts Center would do this kind of stuff.

4:14

So I'm I just am kind of trying to figure out what the contracts look like or what that looks like when we're I mean it things like makeup and hair, like I would just think that all the shows would do that themselves.

4:28

So can you just kind of explain how that works?

4:31

Yeah, good morning.

4:32

Uh this is I'm gonna just be in the acting director from the rights and culture and with me here.

4:36

Is Robbie Elliott from uh Mesa Arts Center in charge of theater operations?

4:42

Um, yeah, so uh vice mayor and council.

4:46

Um it sort of depends really.

4:49

Some of the shows we provide the labor for, some of them they provide the labor for.

4:53

Um tours, they usually travel with 10-ish people, and then we have to supplement labor.

5:00

So that's where we see we don't really know what our crew calls are gonna be.

5:03

Do they pay for those services to be done then?

5:06

So we're you're you're getting money to pay for the services, but then they're paying us for the case.

5:12

Yeah, we're sort of a pass-through.

5:13

We actually make a little bit of revenue off of this labor contract.

5:17

Okay, that's I I guess I wanted to understand that because it seemed weird that we would be paying for their productions or whatever, so that makes sense.

5:24

So if the show doesn't happen, we don't spend the money on the labor.

5:27

Okay, okay, that makes sense.

5:29

All right.

5:30

Right.

5:30

So this is just the authority to go out, spend the money, but we recover those costs through our arrangement with the tour with the show.

5:40

Does it say that any?

5:42

I've looked through the materials, like that just wasn't clear to me.

5:45

I don't know if maybe I should just know that already, but I I didn't that wasn't clear in these.

5:51

We'll look at that.

5:52

Thanks for going.

5:53

That was it.

5:54

Thank you.

5:54

Thank you.

5:55

My next question is um just curious on 5B with the micro shelters.

6:02

Are these the micro shelters we have talked about in the past?

6:05

We've seen pictures of them, or is this something different?

6:08

No, yes, may or vice mayor, council member Swillsbury.

6:12

This is the micro shelter.

6:13

There's an example of one.

6:14

The only one that's out there right now is out here at Center and First that was put in as part of this construction project.

6:20

Okay.

6:21

So what happened was in um the 20 fiscal year 23 budget, we got funding to build some additional micro shelters out there.

6:31

We in the meantime, our congressional delegation put in some additional funding for us into the fiscal 23 federal budget.

6:38

We've just gone through the process with FTA now to be able to spend that money.

6:43

So this is just the pass-through agreement with the city of Phoenix so that we can move forward with that.

6:48

And we so this is the only one we currently have done.

6:52

Yes.

6:53

But is it I'm remembering a uh presentation we had was it about these?

6:58

Yes.

6:58

Did you you showed us this idea?

7:00

Also in a previous budget year, we did two different things.

7:03

We had a shade study of all of our bus shelter, all of our bus stops to see what the shade coverage was.

7:10

And then we also had a project where we designed these micro shelters, and they're designed in such a way that they're modular.

7:19

So as ridership grows, we can expand that that footprint.

7:24

Our challenge right now with being able to add shelters is we don't have we have right-away challenges because we don't have the space for a full-size shelter.

7:32

So this will allow us to add some kind of shading structure at stops that don't have right-away.

7:38

Maybe they have a wall right behind it that prohibits that.

7:41

Are there still some places that there's just not even room to put a micro shelter?

7:46

There are some places like that.

7:48

And we've we we're very um stri we've been very strategic on how we look at putting this so with the shade study identified places where we have trees, which are a good option for that.

8:00

So we're we're doing our best to find out like a shelter might not be the best option for a lot of places.

8:06

So where we can, we're supplementing trees.

8:08

We're looking at do we get shade from an adjacent building that that covers that?

8:12

So um we're trying to provide some kind of shade covering it, most of our bus stops.

8:17

Okay, and do you have uh there it says 40 to 50 of these micro shelters?

8:21

Do we have a map somewhere that we could see?

8:23

Sure, I can get it.

8:24

We can get a map for where we're we're looking at that.

8:26

Okay, and so the goal is to try to get some sort of shade at all of our bus stops if we can.

8:32

Yes, and this by doing this, because we don't know exactly how many we're gonna get with pricing right now.

8:37

We uh estimate we should have slightly over 80 percent of our shelters should have some kind of or of our stops should have kind of some kind of shade structure, shade covering in some way.

8:47

Great.

8:47

Yeah, and that that's uh mayor and advice mayor and council.

8:50

That's a lot of progress that transit has made over the years to get up to that 80%.

8:55

So we're we're moving in the right direction.

8:57

And this has taken a while, but that's the good thing is 80% now of this is paid for by the feds instead of locally.

9:03

So um, so even though it has taken us longer than we would have liked, the fact that we were able to get a federal earmark on this to pay for this portion uh allows um allows more funding from the federal government to pay for it.

9:17

Okay, great.

9:18

Thank you.

9:18

Council member Duff.

9:20

No, Julie did have a good job in discussing that.

9:23

I have one more question, so I don't know if you have um it's for her.

9:27

Okay, a lot of my questions.

9:29

Yeah, just another thing.

9:30

Okay, I didn't know if um one more question I have, um Eric, or is yeah, sorry.

9:37

So 6A.

9:38

I don't know why I'm saying sorry.

9:39

This was your job, right?

9:40

Sorry.

9:41

Okay, so um uh on six A, I just I was driving down extension a couple days ago, and so I just was curious.

9:51

I know this is about the speed limit.

9:54

Um there's just it feels like there's maybe some different things going on in extension.

10:00

So the project that we just approved recently with the bike lanes, is that what's currently being done on extension?

10:06

Vice Mayor.

10:06

And is that the reason for the speed limit change?

10:09

Sure.

10:10

Uh Vice Mayor, Councilmember Summers, let me answer that last question first.

10:14

Yes.

10:15

Okay.

10:15

Um there is a lot going on in extension.

10:18

And um, when I when we came in the spring to discuss the the bike lane project, um, we were tying it on the back end.

10:26

We we have a major maintenance project out there right now.

10:28

So um crews have been out on extension for a few months now working on the the concrete to upgrade all the ramps and curbs that that were broken.

10:39

Um they're starting next week on paving.

10:45

And we're doing the whole section between baseline all the way up to university, is getting a mill and overlay.

10:51

Okay.

10:51

Um, and after all that is done and we have this brand new clean surface.

10:55

Uh our the the crews will out there be done to be doing the striping and delineator delineators for the bike lane project.

11:02

As part of the bike lane project, and we have one section of our project between baseline and southern that was at 40 miles an hour.

11:10

Since we're reducing the northbound direction to one lane, we also felt it was appropriate to then have a speed limit of 35 miles an hour on that section of road.

11:19

Okay, so what's being done right now is just that mill and overlay getting the street done.

11:25

Correct.

11:25

But we will well, it will then be re-striped with for the bike lanes and all that.

11:30

Correct.

11:31

Okay.

11:32

So there's no there's no tearing up the street that has to be done with that project that we approved in the spring.

11:38

Uh no.

11:39

Councilmember, I think that's the beauty of tying it on to a maintenance project is we don't have to do any other work because we have a clean surface to to do all the restriping that that we need to do.

11:50

Did we make a decision on the delineators?

11:53

Do we know what we're putting in?

11:54

Yes.

11:56

Can you tell me?

11:58

Oh, it's that was a yes-no question, right?

12:01

No.

12:01

Um I want to know the color of the size, how far apart they are.

12:06

So the the delineators um are going to be similar to the they're the same delineators we have on First Avenue.

12:14

Um they'll be white instead of green.

12:16

And the spacing, I believe we're doing it at uh uh 25 to 30 foot spacing.

12:22

And then there'll be obviously where there are driveways or or other openings, uh there'll be space back from there.

12:29

And the delineators are between where and where is why um so the bike lane project, and there'll be a um buffered bike lane between baseline and Broadway.

12:42

Okay, and then up to Main Street, we'll have a a smaller, smaller buffer.

12:48

Um, and then north of Main Street, it'll be how it is today.

12:53

Okay.

12:54

All right, that's all for me.

12:55

Thank you.

12:57

Very good.

12:58

Council, any other questions on the agenda for Monday?

13:02

All right.

13:02

And then we we'll have uh an executive session on one of those items and further discussion on Monday.

13:07

I see.

13:08

Correct?

13:08

Yeah, that's right, Vice Mayor.

13:10

Yeah, we uh we have our early start time on Monday, so we can dedicate some time to um items 9A and B on Monday.

13:16

Very good.

13:19

Seeing nothing else, we'll move on to item two A, a presentation on the sale of three city owned residential properties in the Washington Escobito Heritage neighborhood.

13:29

And uh proposed revitalization program in partnership with habitat for humanity.

13:37

Feels like we'll run on centers.

13:43

We have an entourage for you today, Vice Mayor.

13:46

Good morning.

13:47

Yeah, go.

13:52

All right.

13:53

Uh Vice Mayor Council, we're we're really excited to be with you today.

13:56

My name is Jeff Robbins.

13:57

I am the redevelopment administrator for the city.

14:00

Joining with me today is the CEO of Habitat for Humanity Central Arizona and his team who'll be uh coming up to discuss this project with us, and Cynthia Escura, our community engagement administrator.

14:13

Um when we began the redevelopment program a year ago, one of the first exercises we undertook was to look at all the city-owned property through a redevelopment lens to see if we had any redevelopment potential with what we already controlled.

14:26

And three of the properties that we analyzed were within the Washington Escobado neighborhood.

14:31

So today we are here to um present a proposal to develop these properties into uh owner-occupied housing.

14:43

Let me bring up my slide deck, that may help.

14:45

Excuse me.

14:52

All right, Washington Escobado is located along University Drive between Center Street and Mesa Drive.

15:00

We'll be discussing primarily the western half of this neighborhood, which is where you see the single family detached homes.

15:06

Back in the mid-1980s and 1990s, the city led a revitalization effort in this area, and the city purchased 54 parcels.

15:16

And the intent of the purchase was expressly for single family homes.

15:22

Through that effort, because the city is not a developer, we partnered with developers such as Habitat for Humanity.

15:29

And if you drive through that neighborhood today, many of the homes that you would see were constructed as part of that partnership between the city and Habitat for Humanity.

15:40

As we were analyzing and thinking of the highest and best use for these properties, that history and the historic partnership between Habitat was a major reason for why we engaged Habitat to see if they wanted to essentially finish the project that we had both begun together 40 years ago.

15:58

This is also the uh Washington Escapado neighborhood is the first designated uh heritage neighborhood.

16:05

So this is a neighborhood that doesn't have historic buildings anymore, but it does have a unique history that we want to recognize, and it also has a unique infill district overlay.

16:15

And the intent of that and why council approved it in 2019 was to ensure that we are protecting the character of the neighborhood and any new developments that come into the neighborhood.

16:26

So on your screen, these are the three properties that we are discussing.

16:29

One of them is uh just west on the west side of North Sarine.

16:33

There's a property on the southeast corner of East Fifth Place and North Sarine, and then a third property on the northeast corner of North Lewis and East Fifth Street.

16:43

These are fairly narrow, small parcels.

16:46

Uh, we suspect that part of the reason they were never developed as part of the initial 54 parcel purchase is because they were so thin, and back then they may not may not have the capacity to build a building um thin enough to make it work.

16:59

But we uh we've we've progressed in 40 years, and now it's uh it's uh possible to build quality housing on a property of these size.

17:07

These are vacant um and they do attract nuisances.

17:10

We've heard this from the community that sometimes there's a legal dumping, and that dumping then when the wind picks up, it blows trash to the neighborhood and becomes a real nuisance.

17:18

So this is one of the reasons why the community has been supportive of this initiative.

17:22

And Cynthia will dive into more of the details later in this presentation.

17:28

Yes, Councilmember Spielsbury.

17:30

Can you remind me?

17:31

Um, I know when you met with us about this, you went over this, but who owns the north and south sides of that lot one?

17:37

They are two private property owners, um different different owners, and we have tried to reach out to them to find out if they would like to assemble to create a larger project.

17:46

Uh it would be very nice, right, to build all of these out, and we received no response to that inquiry.

17:52

We know who they are, like the are they they're still the owners and all that.

17:56

We as far as the uh mayor uh council member Shillsbury, as far as the uh tax records and and uh uh the um Maricopa um uh recorders office and then the data tells us yes, as far as we know, those are still the owners to the best of our knowledge.

18:14

Because it seems like if the empty lots are causing problems, you're still gonna have large empty lots right there.

18:20

So but you've tried.

18:22

Okay.

18:23

Yes, uh, mayor council member spillsbury correct.

18:25

I think that we would love if all of these would develop.

18:29

Um, unfortunately, we can only control this point what we have.

18:32

So we're we're we're doing what we can now, and we're gonna continue to try to work with private property owners to figure out if there's other ways to um drive investment to these other vacant parcels.

18:42

Yes.

18:45

Excellent.

18:46

Yes, sir.

18:48

Property taxes are being paid currently, or are they in in arrears, or do we know that?

18:53

Um, mayor, council member uh vice mayor, councilmember Adams.

18:56

I I don't know that for sure.

18:57

I can look into that and get back with you.

18:59

Is that that may answer the question whether you have an engaged owner or someone that's left the state or no longer interested in the property?

19:06

If you got several years of unpaid property taxes, that might be uh an indication as to why there's no level of interest.

19:14

Just a suggestion.

19:15

Might be worth looking into.

19:17

Thank you.

19:19

Yeah, thank you.

19:20

I was I was thinking about that too.

19:24

Any other questions?

19:28

Any other slides?

19:29

Yes.

19:30

Yes, Vice Mayor, we do.

19:31

We have those in spades.

19:33

Uh uh, so Vice Mayor Council, this project is uh essentially about home ownership.

19:41

That's why we're doing it.

19:42

We're taking a two-pronged approach.

19:43

We've discussed the first prong, which is constructing new housing on uh the city-owned properties in this neighborhood, but the second prong also involves how do we help existing homeowners to stay in their homes so that we can stabilize the neighborhood and and continue to have quality home ownership.

20:00

So to discuss what is being proposed on the city properties and um the plan for existing homeowners.

20:06

Um I'm gonna turn it over to Todd Rogers and his team.

20:09

They will be stepping up to address different um parts of this project.

20:13

So Todd.

20:15

Vice Mayor Council, it's a delight to be with all of you this morning.

20:19

And uh I just wanted to give you just a bit of background and then introduce two of my team members, and we will be our do our very best to respect all of your time.

20:29

Um Central Arizona Habitat for Humanity has been in the valley for about 40 years, and I've been with Habitat for 18 of those 40 years.

20:36

And during that time, we have um built 1243 homes and done uh excuse me, about 4600 between those last two categories of home repairs.

20:49

Total serving 5800 families in total uh throughout the valley.

20:55

During that time, 44 homes have been built in the city of Mesa, 14 of which were in the Washington Escapado community.

21:03

And we've also partnered with the City of Mesa to uh serve 18 families through the Love Your Neighborhood campaign of 2018.

21:11

Uh our project proposal is uh three to six single family units, owner occupied that uh depending on how much we can fit on the on the properties there and partnering with the neighborhood as well as the city on the setbacks and the easements as well as any type of uh site preparation, whatever whatever we can do to figure out the best way to maximize those lots.

21:40

But we build uh high quality infill, and one of the reasons that we are so focused on the high quality is we're transitioning to a new product called lasting affordability, so that we saw the issue where these homes get built on an affordable homes and then they sell, and after they sell, now they're at market value and they're no longer affordable.

22:01

So this is called lasting affordability, and habitat would guarantee to buy back these homes every single time the families wish to sell them.

22:11

And that way we can put another uh family um seeking attainable housing, and they could move into those homes.

22:20

And because of that, that means that we're interested in long-term durability, minimal maintenance, high quality products.

22:28

Uh, we follow green building standards with Energy Star and LEED, and we prioritize families that are well, virtually all the families we serve are between 30 and 80 percent of area median income.

22:40

And if you need any data on that, we we have some, but to keep things moving, I would like to introduce Deborah Bradley, who's our chief operating officer.

22:49

Uh she's been with the organization just a mere 31 years.

22:53

So she's pretty new.

23:00

Thank you, Todd.

23:01

Mayor, um, Vice Mayor Council, good morning.

23:04

Thank you for the opportunity to be here and talk to you about Habitat for Humanity and the wonderful things that we do in the community.

23:12

Uh so I am gonna talk about lasting affordability and why we are moving towards that and kind of our journey to get here this morning.

23:21

This is a term many of you may know as restall resale restricted homeownership.

23:26

Um the the bottom line is is that it is home ownership, it's attainable, it's affordable, and it shall remain that way into the future, many years to come.

23:36

So we do this in uh a couple ways in the homes that we sell in the beginning that we build uh with habitat for humanity, utilizing volunteers for many of the components.

23:48

We then sell to a home buyer who the payment will not exceed an affordable amount of their yearly income.

23:56

And then the that buyer knows and understands that they're buying the house at a below market value, and that and for intern for that.

24:07

When they decide to sell down the road, they will sell it back to Habitat for Humanity for a restricted amount of money.

24:14

And then Habitat will turn around and re-renovate that home and refurbish that home if needed and put in or look for another qualified buyer for that home.

24:24

So it will remain affordable, home ownership into the future and not uh go to the open market and to investors or become a rental.

24:35

And so this is done through a ground lease mechanism.

24:39

So the ground the lease is retained by Habitat for Humanity, and there is a ninety-nine renewable ground lease placed on the land.

24:47

Uh the buyers will build equity over time.

24:50

And there is a very specific amount of one and a half percent simple interest of home of equity over the years.

25:00

And then the homes will continue as I already mentioned, remain affordable throughout throughout the life of that home.

25:06

And the equity that they build is not only the one and a half percent, but Habitat for Humanity is known for their zero percent interest mortgages, and so that also helps to build that equity faster within the home ownership.

25:21

So basically, here's a graphic design of that, which is lower price initially, lower price at resale when they decide to sell and move on.

25:28

Should they decide to do that?

25:29

And that just continues to happen again and again.

25:34

One question before we go forward.

25:36

Um Mr.

25:37

Roger Todd had mentioned is it did you say 30 to 50 percent AMI?

25:42

Where's the target?

25:43

30 to 80 percent up to 80% AMI is the the target.

25:48

Okay, thank you.

25:49

Thank you.

25:50

So there's a number of reasons why we're doing this.

25:52

There have been many habitat for humanities who've done this across the country, mostly in areas that maybe maybe would make more sense to you.

25:58

Uh thinking about New York City, uh, areas like Portland, Oregon, San Francisco have moved to this model many years ago.

26:06

We have been focusing on this for over two years now, working with the data and working with other habitats across the country to make sure that we come up with a mortgage structure that makes sense for our homeowners here in our demographic in our region of the country, and also makes sense for the affiliate and our habitat affiliate central Arizona.

26:26

So it does protect the donor long-term investment.

26:29

Once you make an investment in a an affordable home with habitat for humanity here in this valley, then that will remain your donation will continue to move forward and serve families going for many many years to come.

26:41

Uh it breaks the cycle, it helps not break the cycle, it helps create affordable home ownership for many generations to come, not just one family, one home, um, one affordable home.

26:51

And then there still is equity building and wealth building through the ownership of the home because of the low interest, zero interest and the one and a half percent of appreciation.

27:01

And with that, do there are any questions for me on lasting affordability?

27:06

Yes, yes.

27:09

So how I'm just curious.

27:10

So, how do you value the home when you res when you sell it again?

27:14

I mean, it's not market value.

27:16

It is not market value, which is a big change for us because we've always sold our homes at market value.

27:21

So, mayor, um I'm sorry, council.

27:23

We don't do this every day.

27:25

No worries.

27:27

It's really the 32nd year where you start to get in.

27:30

Is that is nobody told me that.

27:34

Nobody told me that.

27:35

And I please forgive me for the dry mouth and the rest of this.

27:40

So you're a council member.

27:41

Go for it.

27:42

Thank you for the question.

27:44

Can you repeat it?

27:45

Oh, please.

27:48

How I I'm wondering how you value the homes when you go to resale.

27:52

It is not market value, right?

27:54

So for that, we we have a uh it is all based on the family size and the affordability of that family.

28:02

So the first family based on the house, uh, the how the number of bedrooms, which is also based on the number in the family and the area median income.

28:11

It's a very detailed calculation that that homeowner will purchase that home that is affordable to them.

28:18

And then the next home buyer, there is a the resale buyback formula already exists, and so we already know the next amount to the next buyer, depending on the number of people in their family.

28:31

Okay, so there's there's a formula.

28:33

There's a it's all formula, formula based.

28:35

It is not market value based.

28:36

Okay.

28:37

And that one and a half percent equity that they're um that they're earning is does it matter on again?

28:44

I imagine does it matter how long they're in the house?

28:48

You know, does it build over time?

28:50

Is it if they move out two years?

28:52

It builds over time, so it's one and a half percent simple interest, and it builds over time to the payoff of the to the payoff of the mortgage.

29:01

And they homeowners is welcome.

29:03

Uh, should they need to sell if they outgrow that home?

29:07

Uh you know, like life happens, so maybe a job change or uh different reasons for other family commitments they need to move on.

29:13

They can sell that home any with any time within any time that they live in that home.

29:19

Do they commit to any amount of time when they purchase the home?

29:23

Yes, thank you.

29:24

Uh council member spillsbury.

29:26

Yes.

29:26

Yes, they commit to 400 hours of sweat equity where they hopefully they will build their home or their own uh neighbors' homes.

29:34

There's other opportunities for sweat equity.

29:36

Should their home already be, they be the repurchaser of this home in our restores on other habitat homes and other projects.

29:42

So 400 hours of sweat equity, they also have to qualify because there is a mortgage to be repaid.

29:48

And then they have to demonstrate the need for affordable housing.

29:51

So they're either living in overcrowded conditions, other places falling apart, or they're paying more than 30 percent of their income on rent.

30:00

Do they have to stay there for a year or two years or anything like that?

30:02

They they they really don't.

30:03

There's Council Member.

30:05

Sorry, there's no thank you.

30:08

There is no limit of how long they need to stay in the home.

30:11

However, if there's other down payment assistance type funds or anything like that on the home, if there's grant requirements, they would have to comply with those requirements.

30:19

Individual requirements.

30:20

Okay.

30:21

Thank you.

30:21

Thank you.

30:23

Okay.

30:24

All right.

30:24

So next uh is Mirabella Sasedo, and she will be talking about our home repair program.

30:30

Thank you so much.

30:36

Hi, good morning.

30:38

Um council, uh Vice Mayor and Council.

30:42

Sorry again, Deborah alluded to we don't do this every day, but I wanted to take an opportunity to talk about the home repair um aspect of this partnership.

30:51

Um so habitat um operates a neighbor, it's called neighborhood revitalization.

30:56

And through that program, what we do is we serve existing homeowners.

31:00

And what we do for them is we provide affordable repairs, typically focused on health and safety.

31:07

Um in this particular specific area, it has been deemed by the census track low to moderate.

31:15

So that would mean that the individuals or the homeowners living in the area would automatically qualify for the services that we provide.

31:23

Um so they would just basically need to contact Habitat, let us know what the repairs um are, what repairs are needed.

31:30

We would go out and assess the repairs, and then we would enter into an uh contract to do the repairs for them.

31:37

Um this particular area, depending on the model that we adopt, there could be a small financial um responsibility from the um homeowner themselves.

31:48

But sticking to our hand up model, they would uh participate in our sweat equity program where they would work alongside us to complete the repairs.

31:59

And so um things like roofing, HVAC, electrical, plumbing paint, um, it's all to support the neighborhood and to uh beautify the neighborhood as well.

32:12

Very good.

32:12

Questions on that excellent.

32:16

Thank you so much.

32:18

Deal structure.

32:19

All right.

32:20

Um we will go right into this.

32:23

Um, before we get into the numbers, there's a few things we wanted to um make sure we we brought to your attention.

32:28

There are no restrictions or other encumbrances on this land, so the council does have the authority to um sell it and do what you we wish with it.

32:36

Um we mentioned earlier that there's an infill development uh district and what uh we've we've reviewed what they'd like to build here, and it fits within what the overlay supports, so we so we know it's possible from that angle.

32:49

And because of the history that we mentioned with Habitat for Humanity Um from the 1980s and 1990s, we are proposing a direct uh negotiated sale from council to um habitat for these properties.

33:01

Um also we wanted to um look at what the community wants, of course, and they have created their own quality of life plan for Washington Escobedo, and this project uh fits within some of their key strategies, specifically creating new housing and improving existing housing.

33:18

So there's three different uh funding components that make the project possible.

33:22

The first is the negotiated sale of the three parcels.

33:25

Uh we've negotiated 40,000 per parcel to habitat for humanity.

33:30

And then what the city would do is we would take them those funds and we would reinvest them into the neighborhood revitalization program that Miraville um explained.

33:38

So this would be a cash neutral deal, but it's not necessarily benefit neutral.

33:41

Um they would still collect uh construction sales tax on these buildings and having new residents in the area.

33:47

Um there would also be a uh home funding of 400,000.

33:52

And we we did mention I want to make this clear that it could be somewhere between three to six units.

33:57

We don't know exactly until we go through the entitlement process of what's gonna work.

34:00

Um, but I want to make it clear that Habitat would not be coming back asking for additional funding beyond the the 400 uh because it's more efficient for them to construct two units on a single parcel.

34:11

Uh they they can make it all work whether it's three or six with the four hundred thousand.

34:16

Um so going down to the habitat contribution, the purchase price, um so there's uh a uh expense to habitat of one hundred and twenty thousand.

34:25

Uh they believe it will um cost about one million two hundred to construct the the units, and then when we factor in the four hundred thousand dollars habitats uh investment in Mesa and investment in this neighborhood is estimated to be about nine hundred and twenty thousand dollars.

34:44

Questions on that?

34:47

Yes, sir.

34:48

Mr.

34:48

Adams?

34:49

Um okay, you have construction costs for three to six.

34:54

I assume the million two is for six, and if there were three, it would be half, or am I making a false assumption?

35:00

I'll bring up Todd to answer that question.

35:01

Kind of a big spread there, so you know, half as many or or twice as much.

35:07

Vice Mayor Council and Councilmember Adams.

35:11

Uh that's a great question.

35:13

And the 1.2 is actually for the six homes.

35:16

I'm sorry, for the three homes.

35:18

And if we were to build six, if we were able to do that, we would come up with all the additional funding for that.

35:23

And so that's just uh a benefit to us to not have to buy additional land to do that.

35:29

Uh so that's we were experiencing costs when we were creating this of close to 380 to 400,000 when you do land infrastructure, all in construction, and so that's where you're getting close to that 400,000.

35:42

But it might end up being a little bit less.

35:44

We're hoping that we're able to with zoning and a potential rezone to be able to build more.

35:51

And so anything above that 1.2 million, we would be paying out of from habitat, all would come from habitat.

35:58

So, what would the average square footage of one of these dwellings be?

36:04

Councilmember Adams, uh another great question.

36:09

We would work with the City of Mesa to maximize the density and how much we can put.

36:13

Our current homes range anywhere from 1,600 square feet down to 1200, depending on the lot size.

36:20

So if we're able to get two, and and depending on the setbacks that were required on the narrower lots, it would just depend um on what we could get through with the city and uh the approval part.

36:32

Does that make sense?

36:33

No, it certainly does.

36:34

I'm just I I'm a bit surprised at 400,000 a piece for the the size and type of dwelling, but maybe I'm out of touch with cost of construction these days.

36:45

Thank you.

36:45

Well, then you got the land cost on top of it.

36:48

Might explain the affordability issue of housing if it costs that much to build a small house.

36:55

Councilmember Spillsbury.

36:56

I was just curious.

36:57

So even the thought of a duplex on that land, it's just so skinny and narrow.

37:02

So is I'm assuming it's not front to back, is it on top of each other?

37:05

Like how are you how are you envisioning duplex on that thin of a piece of land?

37:10

Councilmember Spoilsbury, it would depend on which of the three lots because some are the same.

37:15

Oh, I just map so then you could have it side side.

37:19

I was just thinking of that one in between those two lots.

37:22

Right.

37:22

I don't I can't envision a duplex, but that would be the council member suppose that would be the most challenging year, absolutely right.

37:30

Okay, but the other ones are situated where you could have a duplex side by side, potentially.

37:35

Potentially.

37:36

That makes sense.

37:36

And Vice Mayor, Councilmember Spielsbury, I think if I if I could bring up a map of the area, I'm gonna zoom back real quick.

37:42

There are alleys in this neighborhood.

37:45

You can see um the alley cutting between lot one and lot three, and then there's an alley behind um lot two.

37:52

So that but but our one thing we don't know until we go through the entitlement process is can we have an access coming off of the alley?

37:58

And so we need to go through that process with the planning department and talk through those things, which is why um till we go through it, we're saying three to six.

38:05

We we just we don't know.

38:09

So talking about entitlement, do you really have to go through the process, which is time and money?

38:17

Would it be possible just to do under current zoning, which I assume is single family and do attached and detached ADU type situations to add density without having to go through entitlement?

38:33

Uh so uh Vice Mayor, Councilmember Duff, and I may lean on Mary to speak on this, but um the it's it's entitled for uh single family residential.

38:42

One of the things that uh we we believe to be true from our research is that an SCP would be required to go to two stories.

38:48

That's also a conversation with the neighborhood, and so um if we're able to go to two stories, we can get more square footage, we can have larger families, but it's it's it's a discussion with with planning with the neighborhood with habitat and exploring that to figure if we need that extra special use permit for the extra density.

39:06

So an SUP for a second story, I thought on residential single family residentials, a two-story wasn't allowed.

39:14

Thank you, Mary.

39:15

You're welcome, Jeff.

39:17

Um Vice Mayor Council.

39:20

Washington Escobado has an ID2 district over it, so they have their own zoning that's been developed for this area.

39:28

And in looking at at the uh ID2, the second story looks like it would require the SUP.

39:35

So that's been written into the ID two.

39:38

If they meet all of the requirements of setbacks, front back, um, they would be able to go right to permit, but we'd have to see what the layouts look like.

39:46

If they do do a two-story and they're looking at ownership, then we've got to look at what that looks like in terms of how that would be platted.

39:53

So they're without knowing what these buildings are gonna look like, it's hard to say what that process might like might be.

40:03

Sorry.

40:07

Okay, any other questions on the numbers?

40:10

Community engagement.

40:12

All right, uh we turn it over to Cynthia.

40:15

One of the um comments that came up frequently as we briefed the council was the importance of understanding what the community thinks about this project, how they feel, and so uh we reached out to Cynthia and she led a great engagement effort with the community, and so she'll talk a little bit about what we did to reach out to the maximum number of the community members, make sure that they understood um what was happening and then the feedback we received from them.

40:38

Thank you.

40:39

Good morning, Vice Mayor, Council members.

40:41

Cynthia Scura, community engagement administrator with the community services department.

40:46

The community engagement division was asked to support this initiative by leading the outreach, sharing best practices based on our knowledge and experience of working with neighborhoods.

40:57

We have a long-standing relationship with the Washington Escavelo neighborhood, and so we knew that we had to be strategic on the outreach portion.

41:06

So we immediately contacted the point of contact for the neighborhood to let them know about this um Habitat for Humanity initiative, that we were gonna have an upcoming meeting, and to help us let the rest of the neighborhood know.

41:21

Um the outreach and engagement piece to any project or initiative is very important.

41:28

Um it you know, it helps connect um uh we connect with the point of contact and it helps provide insight of what the project did, and it also helps them be well informed of the project, and they have a clear understanding and uh of the project and a meaningful opportunity to feel heard and to provide any feedback to the project.

41:52

So, and this was also very important for the Washington Escabito neighborhood.

41:58

So, some of the outreach efforts that we did was we emailed the residents um on the invitation for the August 28th meeting.

42:07

We helped design the flyers, both in English and Spanish.

42:11

We distributed the flyers door to door to each of the homes.

42:15

We sent text reminders about the upcoming meeting, and we coordinated Spanish translation services for the meeting itself.

42:24

We also helped provide a quick survey at the meeting to engage the residents and to get um their support and to find out if they had any comments and to get their feedback on how they felt.

42:36

Sounds like you took a page out of Dr.

42:37

Apaya's uh dissertation on how to engage a community.

42:43

Um, some of the comments that we got back from the neighborhood was great.

42:48

I'm glad that Happy T Habitat for Humanity is coming back to the neighborhood.

42:53

I strongly approve this project.

42:55

Awesomeness, wonderful.

43:00

So at the meeting, there was about 20 residents, and at the end of the meeting, we had them fill out this three question survey.

43:09

And so there were families there, so some of them filled out the survey together.

43:13

Um, and the first question was asked which best describes your support for habitats proposal to develop three vacant parcels for owner-occupied homes.

43:23

And as you can see here from the survey, there was an overwhelmingly response to strongly support the project.

43:31

There was a somewhat support and a neutral there, um, but we didn't receive any opposition, as you can see from the this survey.

43:39

On the second question, which best describes your support for habitats neighborhood revitalization program, which funds repairs for owner-occupied homes, and once again, uh, they strongly supported um this.

43:55

And then the third question was how would you describe the importance of any new homes remaining financially attainable for home buyers?

44:03

And this was very important for them, and it was one neutral, but as you can see from these surveys, the neighborhood was strongly in support of this project.

44:14

Um, it helped to meet with them.

44:17

They were very appreciative, appreciative, and the um whole meeting and everything was well received.

44:28

Okay, council member Spielsbury.

44:31

So um, I probably should have asked this when when you were up, but the do we know yet the needs of the repair program and if that was like an exciting thing to the neighbors and if they were already bringing up different things they wanted done?

44:46

Councilmember Spielsbury, great question.

44:49

Um, I think that's one of the things that piqued their interest.

44:52

This is why they came out to the meeting.

45:00

Um they didn't share exactly what they needed, but um this was when hearing from the point of contact, said this was going to be great for overall for um the neighbors to hear, and so this is why we felt that was we had such a good um show of residents at the meeting.

45:14

So I I know the people who are like getting the work done or who are getting the houses put in the sweat equity.

45:20

Is it also the opportunity for like the neighborhood to come together to do like a service project for their neighbors?

45:25

Is that kind of how you guys go about it?

45:27

Councilmember Spielsbury, when the time comes, we definitely want to involve the neighborhood because feeling part of the process is very important to them, especially for Washington Escabelo.

45:37

So we definitely want them to get involved, and we want the youth in the neighborhood to get involved as well.

45:42

Awesome.

45:42

I know I saw that like maybe there would even be opportunity for City of Mace employees to go help with projects and stuff too, but I just love the idea of the whole neighborhood working together on neighbors' houses to make it better.

45:54

So okay, great.

45:59

Yes.

46:00

Um, I'm just curious how many people live in that area.

46:03

Do you know?

46:05

Great question, council member go forth.

46:08

There are about when we did the door-to-door flyers, there are about 150 homes.

46:14

Um, you know, uh single family homes that are there.

46:18

Um we also uh did some outreach to um the uh apartment complex apartment complexes nearby, because in case any of them wanted um in the future to buy or have you know the opportunity to purchase a home.

46:33

So but we did the outreach to about 150 homes.

46:36

And I can't remember, was the door you went door to door and to give information or to to drop off information to let them know about the meeting?

46:45

Is that council member go forth?

46:46

We went door to door to hand out flyers, um both in English and Spanish to invite them about uh to the meeting.

46:53

Okay.

46:54

Because I Mike, I know it's hard to get people to come, so I was just kind of wondering if you thought 20 people out of the 150 homes was enough, you know, engagement.

47:04

Councilmember go forth.

47:05

Um, with our experience of working with Washington Escabito and helping parks with the former Washington Activity Center, this is about the norm.

47:15

And so this particular neighborhood likes to take things back to the rest of the neighborhood.

47:21

Um and if they feel it's an you know this is something that they would have interest in, particularly, they'll show up.

47:26

But this is this is the norm for the neighborhood.

47:29

Okay.

47:30

And they do have a board as well.

47:32

They do have a board representing that brings information in.

47:35

Oh, that's good, and they participated.

47:37

Yes, they were there as well.

47:39

Vice Mayor, Councilmember Gilforth, I might jump in as well.

47:42

Um, there's I think questions going to the point of do we know if there's going to be needs for the revitalization program?

47:48

One of the analyses we did at the beginning of this project was to go through and evaluate how many homeowners actually are there, and is there enough for habitat to to do work?

47:58

And uh if you look at the entire part of the entire tract, it is about one-third ownership.

48:03

But if you go down to just that piece of the neighborhood, it's actually majority ownership based on on the tax records.

48:10

And so we have had this discussion with Habitat, and we are gonna go out, um, provided we receive direction from council to do so to do an evaluation.

48:18

If we are not able to find enough needs in the neighborhood, um then we've talked about how it about extending the search area to areas around for other needs until we've um exhausted any any funds and labor.

48:31

So even if the um it sounds like two-thirds is renters in that area.

48:38

Can you go after the owners?

48:40

Like, can we reach out to owners and see what owners might need help too so that the rental properties don't continue to be bad?

48:47

Or are we not doing that?

48:49

Vice Mayor, Councilmember Spoilsbury, the we only uh work with home owner-occupied homes.

48:56

Owner occupied homes.

48:56

So all the repairs will be based on the people who who own the homes in the in the neighborhood.

49:01

Okay, it seems like some of the neighborhoods by me, the bad ones are the ones that are renters that the owners aren't taking care of, so then what do we do about those?

49:10

But okay, thanks.

49:13

Quick question.

49:14

Yes, Mr.

49:15

Adams.

49:16

Um my recollection over the years is that this is a very tightly woven community, much like Lehigh is another example.

49:23

I'm just curious, did anyone object?

49:26

Did you receive any negative or was it all positive reinforcement that that you've received in terms of feedback?

49:32

Councilmember Adams, the feedback and what I heard directly from the residents was um they think this is a good idea, they were in support of it.

49:42

This is a community that will let you know when they're not, and so this was well received.

49:49

Uh they had the opportunity to ask a lot of questions.

49:52

We wanted to make sure that all their questions were answered at the meeting.

50:00

We gave opportunity and we communicated via email as well, and they had the opportunity to ask any questions along the way.

50:04

Um if they had any other questions.

50:06

So all in all, they're all in support.

50:10

Good.

50:10

I think that's uh based on these numbers and what you just described is about 150 homes.

50:15

That that's a pretty good ratio compared to some other uh community meetings that I've been aware of.

50:21

So good.

50:21

Thank you.

50:22

Appreciate it.

50:23

If I can just jump in on that.

50:25

And in my experience of um working with this neighborhood, there's been another project.

50:30

Um we're working on uh with a property and what to do with it in there in a community project.

50:36

But um they're very engaged, like you said, and I think the number one overall concern I've heard from them is watching the development a downtown and feeling like they're gonna be gentrified, they're gonna be priced out and they're gonna be pushed out.

50:53

Um they want you know, some help and and and fixing homes, especially some seniors.

50:59

Um, but you know, these empty lots, they want people who are homeowners in the neighborhood, they are and they want to the neighborhood to be able to kind of you know be revitalized in the in the real estate without pushing them out.

51:20

And this is a way of keeping that community intact by offering that lasting afford affordability, and I look at all the the um excaved uh apartments there, there's a lot of them, and there's a lot of people there are maybe ready to make the next step and are already part of the neighborhood.

51:40

Thanks.

51:43

Uh next steps speaking on next steps.

51:46

Uh so Vice Mayor Council, if uh it is the direction of council that we move forward with this, we would begin drafting a development agreement um to uh define the terms of our partnership with Habitat for Humanity and also a purchase and sale agreement.

51:58

We would bring those back to council.

52:00

We anticipate early next year uh for year review, and if you were to take action on those to approve and to make the sale, um habitat would immediately begin.

52:09

Uh we talked about some of the entitlement entitlement work that needs to occur, uh, habitat would begin on that, and we anticipate that can cons construction would begin um as early as late next year into 2027.

52:22

All right.

52:23

What does it take so long to get from right now until the you know the real estate NDA, which is a year out?

52:35

Uh so from now until early 2026, is that the uh winter 26.

52:41

The first for construction.

52:44

Uh oh, I I'm gonna look at at Todd.

52:47

Is there I mean, I don't know if it's necessary.

52:49

We want to take our time to go through the process and do that well.

52:51

Um and Mary, maybe you'll we wanted to give some flexibility as we think things through um to make sure we're doing it the right way.

53:00

But um Todd, is that is that a realistic question?

53:03

Council, those are great questions.

53:04

We experienced this uh working with municipalities across the valley and just any rezoning process, any part of uh dividing land uh to try to maximize what we can do in the impact and how to really create more homeownership in the in the neighborhood.

53:21

Just the process takes a while.

53:23

It's not because it takes us longer to build.

53:25

We have to it's it's the engineering architecture, everything to to go through all those steps and make sure that we're in compliance with all uh the codes of the city and and uh the setbacks.

53:37

That takes a year before you get to the entitlement step.

53:42

You know, just preparing.

53:43

Yeah, Vice Mayor uh Jeff, I think on the second box winter of 20.

53:49

You're talking about just a few months from now.

53:51

Yes, okay.

53:52

Yes, I'm I'm saying we we can come back early.

53:54

Uh so that should be early 2026.

53:57

So yeah, yeah.

53:59

December January.

54:00

Yeah, you're no thinking January, February.

54:04

Okay.

54:04

You know, I'm gonna start using months from now on, specific months instead of these uh uh my my apologies, council for the confusion.

54:12

We're we're coming back with the DA in in a matter of months.

54:16

So go back and do it all again.

54:18

Yes, yes, sir.

54:20

I got second.

54:21

Well, Mr.

54:22

Robbins, I think you were probably just testing us to see if we were but uh because I was gonna say, Todd, welcome to the Mesa Way.

54:30

We don't need a year.

54:32

Um couple quick questions though.

54:34

If uh I'm assuming remind me how long we've owned these three lots.

54:39

Uh we purchased them.

54:41

I I don't have the exact date, but I know that we went through the redevelopment initiative starting in the mid-1980s.

54:47

I believe they were purchased about 1985, so about four years.

54:49

Yes, yes, comment.

54:50

So we've had this real estate asset for 40 years.

54:53

Have uh I I'm assuming that the development community or other uh investors or others have not been knocking your door down trying to buy these lots.

55:02

Um I I'd have to refer to our real estate um office to see if they've had any inquiries.

55:06

I I can say personally I have not, but I've I've been doing this for about a year.

55:10

All right, you know, the real estate or anything else is worth what the market determines it's worth, and I would say if we've not been approached time and time again with folks who want to buy these to build something there, then I think that's an important piece here.

55:25

It's a it's a non-performing asset.

55:28

So I I'd like to know a little bit more about that.

55:30

Have we have we had offers?

55:32

If we've had them, why have we turned them down?

55:34

I suspect we haven't, but that information would be helpful to me because um, you know, again, you can you can appraise a piece of real estate all day long, but if nobody's willing to offer that, is it really worth it?

55:49

So I'd like a little more information about that, but to me it seems like a um a worthwhile thing for us to pursue, particular to this neighborhood.

55:59

The neighborhood is interested, they're supportive.

56:02

Uh I'm glad we cleared up this business from fall of 25 to winter to to early spring of 26.

56:09

That makes sense.

56:10

So uh if you could give me that information, I just I just appreciate that.

56:14

Yes.

56:14

Councilmember Spillsbury.

56:16

I mean, my understanding is that we didn't really even we weren't aware that these existed until you found them.

56:21

So I I guess I'm just wondering if people my guess is that we could totally sell these for way more money to investors, and we wouldn't have the affordable, uh, what do you call it?

56:34

The perpetual lasting affordability to it.

56:38

We wouldn't have the money going back into the community.

56:40

Like this to me, this is a decision about what's best for the neighborhood and how the city can help what's best for the neighborhood and not a money thing.

56:48

If it was a just a money thing, I don't think this is probably the best decision.

56:52

But that's to me, that's not what this is about.

56:55

Vice Mayor, uh council member, I I might tweak that uh interpretation a little bit.

57:00

We we keep very uh very meticulous records of all of our property.

57:04

I mean, we we know they're there.

57:05

I I think what may have changed is that with the prioritization of council towards redevelopment, we had a new lens to look at properties with and a new mandate from council.

57:16

And so we we approached it from a different way.

57:19

Um I don't think we we found them, but um, but it was looking at them and saying, okay, we you know now we have this new priority, what can we do differently?

57:27

And so with that shift, it it gave us uh kind of a new impetus to to reach out and try to make something happen.

57:34

And Vice Mayor, I I think and Cynthia alluded to this earlier.

57:37

I mean, I think we just have always felt we need to be very good stewards of any property in that particular neighborhood.

57:43

We're we're sensitive to to the ideas of like you said, you you might be able to sell it to a developer um for a different price point, but what how invested is that developer in the community and the fears about uh being priced out, gentrification, other things that could happen in in a neighborhood that's got a lot of history in the city.

58:04

I think there's that sensitivity that comes along with making sure that we have um trustworthy partners who um care about the community and and and the long-term success of the community.

58:15

Council member Duff.

58:16

Yeah, and I just want to mention on our balanced housing plan, of course, the you know the lower income area very difficult to find projects to satisfy that need, and that's our biggest area of need is on the lower income.

58:30

So this really helps us at least take some steps and preserves the neighborhood at the same time.

58:37

Very good.

58:38

I think there there'll be more opportunities for folks to weigh in on this sometime in the early spring of 2026.

58:47

Uh but uh I think most people are familiar with the work that your organization does and pretty supportive of it, and this certainly meets a need in our community for for housing.

58:58

So I'm looking forward to uh seeing the details soon.

59:02

Any further questions or comments from council staff?

59:06

Vice Mayor, I have one more slide, and this is uh I I know, and I was my apologies, Vice Mayor.

59:12

I interrupted you.

59:13

No, go ahead.

59:14

All right.

59:15

That uh now that I've preempted the Vice Mayor.

59:17

Um we uh we we did want to put this out, and I believe I believe Councilmember Spills, you saw this um as you're reviewing the deck.

59:24

Uh we are excited about this, and you know, our why, why public servants exist is to serve our residents, and and we all get a lot of satisfaction out of doing that, but it's a lot more fun when you get a swing of hammer doing it.

59:34

And so we've um worked with Habitat.

59:37

One of the ways that they fund their projects is by having corporate teams come out and they'll volunteer to do framing or different pieces of a project.

59:43

And they typically pay a charge to to do that to help support the um the property.

59:48

And because of the level of partnership that the city would be entering into, um, they've offered up some of those team build slots to the city, so different departments or professional organizations inside the city could volunteer to build together teams and like we're getting set up.

1:00:05

Yes, uh Vice Mayor.

1:00:07

If you need a big truck, I know a guy.

1:00:11

It's not that big.

1:00:14

It's not like a still have a tool, though.

1:00:20

Uh oh.

1:00:21

Vice Mayor, I think council would make a great team.

1:00:24

I have a feeling this might happen.

1:00:27

Um but again, then this would be uh not only just working side by side with our colleagues, but also side by side with community members as they put in those 400 hours and a great way to build relationships in this community and to build it up together.

1:00:38

So we're we're excited about this extra kind of cherry on top of this project.

1:00:43

So with that council, um, we will conclude and uh entertain any questions or uh direction that you have for us.

1:00:51

Okay, any more questions or comments?

1:00:53

Seeing none, I would suggest no nail guns, hammers, or ladders for council, anything floor level.

1:01:01

Nothing good stains.

1:01:03

All right.

1:01:04

Thank you so much.

1:01:06

Moving on to item three is to acknowledge received a minutes.

1:01:10

Do I have a motion?

1:01:12

Motion by Councilmember Spillsbury, second by Mr.

1:01:15

Adams.

1:01:16

All in favor say aye.

1:01:17

Aye.

1:01:18

Aye.

1:01:18

Any opposed?

1:01:21

Me.

1:01:22

Uh current events and conferences attended.

1:01:27

We both have a line.

1:01:29

It's been a well, we didn't have study session last week, so we've been saving.

1:01:33

So get comfortable.

1:01:34

All right.

1:01:34

No, I don't have too many things, but um Councilmember Spielsberg.

1:01:39

Council Member Heredia and Duff and I all attended the peace poll dedication over at MCC.

1:01:44

Um, that was a beautiful event with um lots of people coming together to celebrate the International Day of Peace.

1:01:51

Um we yesterday I attended Coffee with a Cup over in my district at OSG Cafe on Maine in Power.

1:01:58

I want to thank all of our police officers and residents that attended there.

1:02:02

And then I wanted to announce that tonight is um Mesa's domestic violence awareness night, and it will be from 5:30 to 6:30.

1:02:10

A domestic violence survivor is the keynote speaker, and there will be information booths providing resources and information.

1:02:16

So and it's at the post at okay, it's at the post from 5:30 to 6:30.

1:02:22

That's it.

1:02:23

Wow.

1:02:25

Council member Dove.

1:02:25

I'll do a little fill-in.

1:02:28

Uh-oh, okay.

1:02:30

Um last week I attended the Arizona Refugee Fundraiser Gala at the Bright House.

1:02:36

Um, Councilmember Swillsbury was there too.

1:02:39

And they do amazing work connecting refugees to resources and jobs.

1:02:43

Um I last week also attended a um local first Arizona business community activation at Empower Coffee that's at Gilbert Road and Hampton.

1:02:56

Uh so uh it's a way of bringing together business owners at a business owners and talk about um you know business stuff and in a local first way.

1:03:07

Umpower actually roasts their own brand, their own coffee beans, and they have an inviting and friendly environment, and they're gonna have a coffee tasting event.

1:03:16

I've done beer events, I've been wine events, but you know, the other necessity of life is the coffee, so I'll definitely be watching for that.

1:03:23

Um on Saturday, I attended the um oh council member Goforth was there.

1:03:31

Uh the Arizona Natural History Museum Rock the Rock Fundraiser, and it had live music, amazing food, and it was a great time, and uh the museum is just doing more and more incredible work.

1:03:44

I invite everybody to go check it out and be part of their future.

1:03:50

Um then yesterday I attended oh uh um coffee with a cop at Starbucks at Country Club in Southern.

1:04:00

Um thank you to everyone at uh Fiesta PD and Central PD, along with a lot of other staff members who are gathering with the community.

1:04:07

Uh Commander Troth and uh community action officer Chacho.

1:04:13

They were had their apron on and they were serving customers and you know, so it so it was really cool to see them in service of the community, literally.

1:04:23

Um and then yesterday I attended also the women leading Mesa, harnessing the strategic power of storytelling, and um many uh Anna Anna Pereira, I know um she was uh one of the panelists as well as Sarah Lippich of the Library.

1:04:46

Um Mary Kaproski Brown, our planning director, she was on there, and Danica Marlin with the Mesa Arts Center and Mabel.

1:04:55

So um it was really I enjoy their events.

1:05:00

Uh it's really great hearing from some of our own within the city, uh, the things that they're doing uh in order to um empower and inspire each other as well as elevate Mesa.

1:05:09

Thank you.

1:05:10

Councilman.

1:05:13

Excuse me.

1:05:14

Last Saturday uh along with the museum event, I also participated in a walk for alopecia.

1:05:20

One of my constituents, a young man was diagnosed with alopecia when he was young, younger.

1:05:26

Um, and uh, and so he organized the walk for alopecia to raise money and awareness for uh people who are diagnosed with it.

1:05:35

So we had a great turnout.

1:05:36

We did walk in the rain, which was pretty nice actually.

1:05:40

Um and then yesterday we had the renaming of uh Mountain Vista Medical Center.

1:05:44

Um it's been acquired by Honor Health and it's now four peaks on our health.

1:05:48

So we're excited about that.

1:05:50

Barry Mr.

1:05:52

Adams.

1:05:53

Um I I barely missed Councilmember Duff at the Starbucks uh coffee with a cop yesterday, but uh uh my district coordinator Tanya and I went down there, and it was it was great to see the level of community support offered by Starbucks and their people, in addition to uh our officers there.

1:06:13

So uh, you know, uh shout out to Starbucks.

1:06:17

I think that that level of support is great, especially for our police department, and uh those are great events, and uh uh this one was uh I thought well attended, and I I did see uh the new commander at Fiesta in his Starbucks apron.

1:06:30

So he was doing a great job.

1:06:32

I'm not sure how well he did on tips, but we'll see.

1:06:35

But thanks.

1:06:37

Thank you.

1:06:38

I I attended a few events as well.

1:06:40

I want to highlight one is our uh Taiwanese 1010.

1:06:44

We have a very robust uh Asian district in this city, but in addition to that, we're seeing a lot of economic growth driven by uh chip manufacturing as an example, and Taiwan is a very important part of the jobs being created here, so the cultural connections are increasingly important.

1:07:06

Plus, having been to Taiwan on several occasions, I really like love going to the events that they have there.

1:07:12

Um a small one, I had a little different coffee uh event.

1:07:18

I I met with uh a couple, Brandy and Jeremy, over coffee, and I bring this up.

1:07:23

They're gonna be opening geodesign company in my district uh probably by January.

1:07:29

Uh they uh they are truly a garage business.

1:07:34

It's uh it's a home design company.

1:07:36

They are a garage business, they've just moved out of that, and they're gonna take down some of the space, the commercial space in that's in my district.

1:07:45

This success story is built in part by the Mesa Business Builder.

1:07:49

They are utilizing those resources uh and will continue to utilize those resources as they ramp up their business.

1:07:56

This is a great success story.

1:07:58

I hope we uh we we can attend that ribbon cutting.

1:08:00

They are planning a ribbon cutting uh in probably in January and uh and tell that story because this this is uh a lot of investment we put in to help our small businesses, so this is a great way to get that out there.

1:08:14

Um other than that, I think that's good enough for now.

1:08:18

Mr.

1:08:18

Butler, what do we have for meetings?

1:08:20

Fun fun events coming up.

1:08:22

That's right.

1:08:23

Well, Vice Mayor Council will be back here on Monday um with an early start time at 4 15 uh p.m.

1:08:29

So we'll have uh ample opportunity uh to discuss n items uh items 9a and 9b, including an executive session about those.

1:08:37

So we'll we'll start early so that we can hopefully get through that and be able to start our council meeting on time that will immediately follow that.

1:08:44

And of course, for those of you I know you've been notified, but if you're available, uh we'll be celebrating the the life of uh firefighter Paul Shoop on Saturday uh morning at 10 a.m.

1:08:55

at the Central Christian Church in Gilbert.

1:08:58

Uh Paul succumbed earlier this week to a courageous battle with brain against brain cancer, and so we're gonna recognize Paul uh on Saturday um at uh that event and then on Monday.

1:09:10

Uh I know Chief Camelli will offer a few words uh during our council meeting on Monday evening.

1:09:15

So thank you for mentioning that.

1:09:17

I think the mayor will have uh some comments on that on Monday as well.

1:09:20

Absolutely.

1:09:21

You work with him.

1:09:22

So with that, I will entertain a motion to adjourn.

1:09:26

Councilmember Duff, Councilmember Spilsbury, all in favor, say aye.

1:09:30

Aye.

1:09:31

I'm sure there's none opposed.

1:09:33

Motion carries unanimously.

Discussion Breakdown — Share of Meeting
Affordable Housing███████████████████████████████████████████43%
Community Engagement████████████████████20%
Procedural████████████12%
Public Transportation████4%
Transportation Safety████4%
Zoning And Land Use████4%
Liquor Licensing███3%
Arts And Culture███3%
Public Safety███3%
Summary of Proceedings

Mesa City Council Study Session – October 2, 2025

The Mesa City Council held a study session on October 2, 2025, primarily to review items on the agenda for the October 6 council meeting and to receive a presentation on a proposed revitalization program in the Washington Escobito Heritage neighborhood. Staff provided updates on procedural changes to liquor license recommendations, transit bus stop shade structures, and a speed limit adjustment on Extension Road. The council also approved minutes and shared updates on community events.

Agenda Review for October 6, 2025

  • Liquor License Recommendation Denial (Item 3E): Leanne, a staff member, explained that due to a procedural change by the Arizona Department of Liquor Licenses and Control (DLLC), which reduced the extension period from six months to 60 days, the city will see more initial denial recommendations for liquor licenses. The current denial is expected to be withdrawn once the applicant provides missing information. Councilmembers acknowledged the change.
  • Mesa Arts Center Labor Contracts (Item 4C): Councilmember Summers asked about the nature of contracts for shows at the Mesa Arts Center. Staff clarified that the city provides labor for some shows and recovers those costs through agreements with touring productions, making the city a pass-through with a small revenue margin.
  • Micro Shelters for Bus Stops (Item 5B): Councilmember Spilsbury inquired about the micro shelter project. Staff confirmed that these modular shade structures are being placed at stops with insufficient space for full-size shelters. The project will install 40 to 50 shelters using federal funding, aiming to achieve shade coverage at over 80% of bus stops. A map of proposed locations will be provided.
  • Speed Limit Reduction on Extension Road (Item 6A): Councilmember Summers asked about the speed limit change from 40 to 35 mph on Extension Road between Baseline and Southern. Staff explained that this reduction is part of a bike lane project that will restripe the road after a mill and overlay maintenance project. The northbound lane will be reduced to one lane. Delineators similar to those on First Avenue, but white, will be installed at 25-30 foot spacing.

Presentation: Sale of City-Owned Properties and Revitalization Partnership with Habitat for Humanity

  • Proposal Overview: Jeff Robbins, Redevelopment Administrator, presented a plan to sell three city-owned vacant parcels in the Washington Escobito Heritage neighborhood (owned since the 1980s) to Habitat for Humanity Central Arizona. The partnership aims to build 3 to 6 owner-occupied affordable homes and fund a home repair program for existing homeowners.
  • Lasting Affordability Model: Habitat CEO Todd Rogers and COO Deborah Bradley described a "lasting affordability" model using a 99-year renewable ground lease. Homes will be sold to families earning 30-80% of Area Median Income (AMI) at below-market prices. Homeowners will build equity through 1.5% simple interest annually and zero-interest mortgages. When selling, they must sell back to Habitat at a restricted price, keeping homes affordable permanently. Homebuyers commit to 400 hours of sweat equity.
  • Home Repair Program: Mirabella Sacedo explained that Habitat's Neighborhood Revitalization program will provide affordable health-and-safety repairs (roofing, HVAC, electrical, etc.) to existing owner-occupied homes in the area. Since the census tract is low-to-moderate income, homeowners automatically qualify, and they may participate in sweat equity.
  • Community Engagement: Cynthia Escura reported outreach to about 150 homes via door-to-door flyers in English and Spanish, text reminders, and a meeting with 20 residents. A survey showed overwhelming support for both the housing proposal and the repair program, with no opposition. Residents expressed appreciation for addressing vacant lots and fears of gentrification.
  • Financial Structure:
    • Negotiated sale price: $40,000 per parcel ($120,000 total).
    • City contribution: $400,000 to support construction.
    • Estimated construction cost for three units: $1.2 million (Habitat will cover additional costs if more units are built).
    • Sale proceeds will be reinvested into the neighborhood revitalization program, making the deal cash-neutral for the city.
  • Next Steps: Council directed staff to draft a development agreement and purchase and sale agreement for return early 2026. Construction could begin as early as late 2026 into 2027. Habitat also offered volunteer team-build slots for city employees.

Consent Calendar

  • Approval of Minutes (Item 3): Councilmember Spilsbury moved to approve the minutes, seconded by Councilmember Adams. The motion passed unanimously.

Councilmember Reports and Events

  • Several councilmembers reported attending community events, including the Peace Pole dedication at MCC, Coffee with a Cop, the Arizona Natural History Museum fundraiser, Domestic Violence Awareness Night, and a walk for alopecia. Councilmember Adams noted the renaming of Mountain Vista Medical Center to Four Peaks on Honor Health.

Key Outcomes

  • Council agreed to proceed with the Habitat for Humanity partnership and directed staff to prepare agreements for formal consideration early 2026.
  • The minutes of previous meetings were approved.
  • The study session adjourned with a motion from Councilmember Duff, seconded by Councilmember Spilsbury, passed unanimously.

Meeting Transcript

Good morning. Welcome to the Mesa City Council study session for October 2nd, 2025. Most of our council are present. So he is excused for this meeting today. Other all other council members are present. Item number one on the agenda today is to review and discuss items on the agenda for October 6, 2025. And while we while you do that, I see we have three E as a recommendation from denial on a uh liquor license. Yeah, Vice Mayor and Council, why don't we have Leanne come up? There's been some procedural changes at the state that may lead you to see more recommendations for denial, but Leanne can talk through that and tell you why you may be seeing more of those. Good morning, Vice Mayor Council. We do have one for denial. Um this time we're expecting them to withdraw because the liquor license applicant is a different entity than who is operating here in Mesa with all their other licenses and permits. We're trying to get it cleared up, but they haven't had a chance to yet. And they've told us they were gonna withdraw this. They haven't as of today. So it is still up for denial for this one. In addition, the reason why we're seeing more of initially incomplete information, possible denials when it's initial on your um the agendas is because the Arizona Department of Liquor Licenses and Control, which is known as the DLLC, in the past has allowed us to request a up to six month extension on allowing the applicant to get us the information that we require. Currently, the it provides a 60 days only, and they're holding us to the 60 days. Okay, does that change anything for the from a council's perspective? Other than we're gonna probably see more denial. Yeah, and more that might start as a denial and flip and if they get it into us by the day of canceling. Once they fix it. Yeah, so you'll just see more inconsistency on that. I thought I saw an earlier um version of our agenda where 3G was a denial too. Did that work through its process or is that a very that could very well be the case, especially when we do get you the agendas so early? Sometimes you'll see, you know, when it's 10 days before the actual meeting, uh Leanne and her office will be. Which I very much appreciate, but I know you do. So uh that that is one of the one of the things that represents a bit of a challenge because you you see a lot of movement in those items over the that 10 day period. So yeah, but however, 3G is good to go. They have provided us everything. And that's what I would expect for the most of these when they if they're missing the paperwork, don't check all the boxes, they're gonna get a recommendation denial that they can fix. Yes. As they go through. It was just odd because Walmart failing to get their boxes checked in time is a little odd. That's why they had an outstanding bill of us. Clearly, they have gotten it together already. They're just a little late. So uh, yeah, and we do make uh constant connection with these applicants to encourage them and what they need to do from all the different departments. So that's fantastic. That's good to know. Clearly, it won't change it from our perspective, and sounds like we'll just be able to get those fixed before they get to the state board. Yes. Uh any items, yes, ma'am. Um, I just have like some pretty simple quick questions, but that I wasn't able to call and talk to the right person yesterday. But on 4C. So I don't know if who's here from Arts and Culture. I was just wondering. Um, this is probably just more of a matter of I don't know how things work, but I feel like the um the shows that come to the Mesa Arts Center would do this kind of stuff. So I'm I just am kind of trying to figure out what the contracts look like or what that looks like when we're I mean it things like makeup and hair, like I would just think that all the shows would do that themselves. So can you just kind of explain how that works?

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