Well, good morning, everyone.

Hi there.

I think this weather has brought out the best of us, you know, the clouds, we know the impending rain, the storm.

It's pretty awesome to have some weather coming in.

Hey, thank you, everyone.

Mesa City Council Study session for October 9th, 2025.

All our council members are present.

We'll start with item one is to review the agenda we have for our October 20th council meeting.

And let's go through that agenda.

Miss Spillsbury.

Absolutely.

Staff staff's definitely prepared for that.

So if we could have um have staff come up to tell you a little bit about the purchase of this building.

Morning, Mayor and Council.

Uh Mark Alstrom, Assistant City Engineer, and I have Lisa Davis, our engine our real estate manager with us to talk about the purchase of this facility.

Good morning, Mayor and Council.

Uh we're here to talk about the potential purchase of two buildings from MCCD, which is Maricopa County Community College District.

They're located here in downtown Mesa, uh just east of Center Street here, and then south of university.

Here's our Mesa Convention Center, and then the Delta Hotel is right across the street from 165 and 145 North Centennial.

Um 145 North Centennial is on top of our uh garage that we own currently.

It's on the fourth floor.

Uh and 165 is a two-story building.

Uh starting with the discussion of 145 North Centennial.

Um it is approximately 33,000 square feet.

It was constructed in 1990, and the AC units were recently replaced.

There is a unit three, which is just air rights for potentially building in the future, about 18,000 square feet.

We had a uh third party appraiser appraise the building, and it came in at a valuation of 4 million, 80,000.

Um, here are some pictures that staff took when we had the tour.

They recently did some renovations on the lobby building as well as in the conference buildings.

The second building is 165 North Centennial.

Uh it's a two-story structure.

It was built in the 1980s.

Um it has um it had a lot of deferred maintenance.

Um, that actually MCCD uh provided us a list of those deferred maintenance, and it costs about 2.7 million dollars to bring it up to standards.

So it appraised at six six hundred and fifty thousand dollars.

And the plan is to demolish the building, put in some like low water landscape, uh, and then use it maybe potentially for some redevelopment in the future.

It is close to site 17 as well as the Delta Hotel.

There's here's some staff pictures as well from the tour.

Uh these are some internal pictures, uh, and then this is external windows there.

Um again, staff is recommending that we purchase the two buildings uh for four million seven hundred and thirty thousand dollars.

If you have any questions, I'll be happy to answer them.

Council, any questions.

Mayor, I would I would just add we we've appreciated the discussion, the partnership with MCC and the community college district on this.

Um they approached us when they realized that this would be access property for them.

Certainly, as has been alluded to, the location of this adjacent to cul-de-sac, adjacent to the Delta and the convention center and the library.

Uh it's it's just a key uh site for us to be able to help control redevelopment on the area for the one for the site that we would demolish and then um look for future opportunities for redevelopment on the um side on top of the parking garage, though, that is definitely space that that we need um for for city staff right now.

Um we we have some of our own facilities with deferred maintenance and and uh we we have a desperate need to find some areas that we can relocate some of our staff as we look towards future redevelopment, including the 55 North Center building, which is you know part of our long-term agreement with ASU for for redevelopment, the DSD and the other uh employees that reside in in that building.

Um they they could speak to it's seen its better days, and um, and we were about to spend uh potentially uh millions of dollars to just get that up to uh workable uh status, and it would be much better for us to instead use those funds uh toward uh issues like this, getting our employees into a better space and then be able to further our partnership with ASU on that building, for example.

So uh staff's engaged in an overall master plan right now so that we make sure that we match up um our facility needs with the long-term needs and and current needs, frankly, um, of the city as well.

So we're working through that right now, but we definitely see uh this purchase is as a key component to that.

Thank you, Miss Billsbury.

So the that floor above the garage is still good, and we would use that for city offices, is what you're suggesting.

It it is facilities and engineering, uh spent a lot of time looking at this.

There it needs a little bit of TLC just to get it uh up to up to the standard to move our employees into, but it's in it's in really good shape.

It's got great bones and good infrastructure, AC units, other things as they alluded to.

So um, we we feel very good about being able to get some employees into that space in the not not too distant future.

I know the chamber already left and um the veteran center, I think already left or is leaving.

They already left.

Anyway, so are there other what what's happening to any other tenants that are there?

Mayor, council member spillsbury.