OPENPUBLICA · PUBLIC MEETING RECORD
Record of Proceedings

Mesa City Council Study Session - January 22, 2026: Property Sales and Annual Financial Report

Council Study Sessions — Thursday, January 22, 2026
BodyMesa, Arizona
SessionCouncil Study Sessions
DateThursday, January 22, 2026
StatusFILED
Video Record
0:00 / 55:47

Transcript — Verbatim
0:02

Okay, welcome everyone to our Mason City Council study session for January 22nd.

0:08

All of our council's present, and thank you for that.

0:11

Item one as usual, so review the agenda for Monday's uh January 26th council meeting.

0:17

Council.

0:19

If there's some questions, we have everyone here to help answer that.

0:36

Okay, I have one.

0:39

Item 5B, the sale of the property on North Phillets.

0:43

That was uh I guess the uh adjoining property owner approached the city, and in the past we have probably well in the past we've gone out for auction on the parcels too on a prior parcel.

0:58

I know we'll have a presentation on that today.

1:00

And I'm just thinking, why would we not have an auction versus uh the sort of the property?

1:06

Hi, Lisa Lance.

1:08

Yeah, good morning, uh Mayor and give us an overview.

1:11

Not that I'm opposed to it.

1:12

I I just I like auctions.

1:15

Uh here with Lisa uh maybe we want to touch on that here for a minute.

1:21

Sure, good morning, uh Mayor and Council.

1:24

Um the property is there a slideshow?

1:31

Should be one loaded.

1:36

There it is.

1:39

Thank you.

1:41

Good morning.

1:42

Uh so 159 North Phyllis.

1:46

Um it's a property that we purchased back in 1985.

1:50

There was a house on it that was flooding at the time during any rainfall.

1:54

So the city purchased the property and then demolished the home.

1:57

So we've owned it as a vacant property since that time.

2:00

Uh it's just over 15,000 square feet in size, and we uh hired a third party appraiser who appraised it a hundred and sixty-five thousand dollars.

2:09

Um, as the mayor mentioned, uh we were approached by the property owner to the south to purchase the property.

2:17

So we did reach out to other property owners within the area because it seemed um the best to assemble it with other properties in the area because it's uh not a very large property.

2:28

Um, and so we did not receive any feedback from any adjacent property owners other than the one to the south.

2:35

Uh Bastion Bastion Investments is interested in redeveloping the site to the south.

2:40

It's just over two acres in size.

2:42

Um they're hoping to maybe use it as a secondary access into their property.

2:48

Um let's see, it just makes more sense, of course, that it's assembled, and then um they're also working with our redevelopment program administrator for the redevelopment of the site.

3:00

Um so the advantages of of course are just selling it for the appraised value of 165,000.

3:06

Uh, it would be redeveloped.

3:08

Uh Bastion Development is definitely looking at uh redeveloping the site soon, and so then the site would no longer be vacant since it has been vacant since 1985.

3:19

Um of course we're just looking for the authorization to sell the property.

3:23

So I'd be happy to answer any questions.

3:25

So, mayor, real quick, I'll just add to that with this presentation.

3:29

You know, having purchased that in the mid-80s, um, there is a series of ponding that happens behind the Tempe Canal in this area.

3:36

That that property being one of the worst that continued to flood.

3:40

Um topography-wise, that that site uh really is kind of the low point of that vape, those vacant properties that you see, and so despite maybe using that for ingress, egress or their development.

3:55

Um it likely will have to be used for some level of retention also with their site too.

4:03

So well, my thought was you know, again, an auction versus the sale of the property.

4:11

Either way is fine with me.

4:12

I just want to know a little bit more about I know this is an older uh neighborhood area, larger properties were assembled in that area back in probably the 20s and 30s, and and so some of the parcels are larger.

4:25

And so I just thought I'd bring it up to council, see what their council member Haredi if what his thought was he represents the area and if he's okay with uh just the sell of a privately or he wants to go to an auction sometimes at an auction, you might get a higher price starting at the base price of the appraisal.

4:46

Um I'll just come in.

4:47

Uh you know, I'm okay with this.

4:49

Uh it's a kind of interesting property kind of tucked into near the canal.

5:00

So in when you look at the area, it's a mix kind of there's duplexes, trap fixes, and some industrial thing apartments and single family homes.

5:06

So it's it's a mix of different types of uh buildings there.

5:11

So I'm I'm okay on this then.

5:14

Um and then just await, you know, what further develops.

5:18

I know there's some the vacant land on uh uh north of that, right?

5:23

So it's north of the sound is so yeah.

5:27

Um so see what what is developed on that end.

5:31

So what is the zoning on that property?

5:35

What is the anticipated type of use?

Discussion Breakdown — Share of Meeting
Zoning And Land Use██████████████████████████████████34%
Fiscal Sustainability████████████████████████████28%
Community Engagement███████████11%
Public Engagement████████8%
Procedural███████7%
Public Transportation█████5%
Historic Preservation███3%
Environmental Protection██2%
Engineering And Infrastructure██2%
Summary of Proceedings

Mesa City Council Study Session - January 22, 2026

The Mesa City Council held a study session on January 22, 2026, to discuss the sale of two city-owned properties, receive the fiscal year 2025 annual comprehensive financial report (ACFER), acknowledge board minutes, and share updates on community events. The council also reviewed the agenda for the upcoming January 26 council meeting.

Discussion Items

1. Review of January 26 Council Meeting Agenda

  • Councilmember GoForth questioned why the sale of 159 North Phyllis (item 5B) was proposed as a direct sale rather than an auction. Lisa Lance, real estate manager, explained the property was purchased in 1985 due to flooding, demolished, and has been vacant since. An adjacent property owner (Bastion Investments) expressed interest in purchasing it for redevelopment (senior living) and potential secondary access. The property is appraised at $165,000. Councilmember Haredi expressed support for the direct sale, noting the area's mixed zoning and the potential for redevelopment. The council agreed to proceed.
  • Councilmember Taylor asked about the $34 million bond referenced in item 5C (Proposition 4479/479). Staff clarified it is the countywide transportation tax extension (Prop 479) that funds freeways, transit, and arterial streets, with Mesa receiving a substantial portion.

2. Sale of 10-Acre Parcel at 8130 East Redberry

  • Lance Webb and Lisa Davis presented a proposal to sell the city-owned parcel (purchased in 2003 for $630,000 as a potential park site, now deemed unnecessary) via online auction. The property is appraised at $1,550,000 and zoned RS-35. The auction would use the EasyBuy platform, with a 30-day website listing, 500-foot (expanded to 1,000-foot) neighbor notification, and a $77,500 deposit. The council discussed septic system requirements (due to lack of sewer), zoning restrictions, and potential redevelopment. Councilmember GoForth and others expressed support for the auction, with direction to proceed. Staff noted proceeds may be reinvested into nearby park enhancements.
  • Councilmember Adams asked about locking in zoning and future sewer connection costs. The city attorney clarified that binding future councils on zoning is not legally possible, but the development agreement could require dry sewer lines. The council agreed to move forward with the auction.

3. Fiscal Year 2025 Annual Comprehensive Financial Report (ACFER)

  • Finance Director Irma Ashworth presented the audit results. The city received an unmodified (clean) opinion from independent auditor Clifton Larson Allen, with no findings or material weaknesses. Total revenues remained strong, with governmental activities revenue comparable to FY2024. The city's net position reached $1.3 billion, the strongest in history. Total assets were $6.1 billion, liabilities $4.8 billion. Key highlights included consistent sales tax revenue (despite the elimination of rental tax in January 2025), a two-year lag in state income tax distributions, and a decrease in unfunded pension liabilities (ASRS, PSPRS). The city is making extra contributions to PSPRS, aiming to pay off the unfunded liability by 2042. Councilmember Taylor asked about the audit process, and staff confirmed the third-party audit and internal controls were robust.

4. Acknowledgment of Board Minutes

  • The council unanimously approved the receipt of board minutes. The motion passed without objection.

5. Nexus Current Events and Conferences Attended

  • Council members reported on events: MLK Jr. parade and festival (sponsored by the city), the final pipe placement for the Central Mesa Reuse Pipeline (a water exchange with the Gila River Indian Community), Mesa Police Department promotions and awards, the Mesa Historic Homes Tour, and the Park Rangers meeting. Councilmember Summers highlighted ribbon cuttings and groundbreakings in District 6, including Cannon Beach and DSV's regional headquarters.

Key Outcomes

  • Direction to proceed with sale of 159 North Phyllis via direct sale to Bastion Investments at appraised value of $165,000. Staff will bring a formal authorization to a future council meeting.
  • Direction to proceed with online auction for 8130 East Redberry parcel. Auction expected by end of March 2026, with final sale authorization to come before council.
  • Acceptance of the FY2025 ACFER with a clean audit opinion. The report will be formally presented at the January 26 council meeting.
  • Unanimous approval of board minutes.
  • Next study session: January 26, 2026, at 5:15 PM, followed by a council meeting. The January 29 morning study session was canceled.

Meeting Transcript

Okay, welcome everyone to our Mason City Council study session for January 22nd. All of our council's present, and thank you for that. Item one as usual, so review the agenda for Monday's uh January 26th council meeting. Council. If there's some questions, we have everyone here to help answer that. Okay, I have one. Item 5B, the sale of the property on North Phillets. That was uh I guess the uh adjoining property owner approached the city, and in the past we have probably well in the past we've gone out for auction on the parcels too on a prior parcel. I know we'll have a presentation on that today. And I'm just thinking, why would we not have an auction versus uh the sort of the property? Hi, Lisa Lance. Yeah, good morning, uh Mayor and give us an overview. Not that I'm opposed to it. I I just I like auctions. Uh here with Lisa uh maybe we want to touch on that here for a minute. Sure, good morning, uh Mayor and Council. Um the property is there a slideshow? Should be one loaded. There it is. Thank you. Good morning. Uh so 159 North Phyllis. Um it's a property that we purchased back in 1985. There was a house on it that was flooding at the time during any rainfall. So the city purchased the property and then demolished the home. So we've owned it as a vacant property since that time. Uh it's just over 15,000 square feet in size, and we uh hired a third party appraiser who appraised it a hundred and sixty-five thousand dollars. Um, as the mayor mentioned, uh we were approached by the property owner to the south to purchase the property. So we did reach out to other property owners within the area because it seemed um the best to assemble it with other properties in the area because it's uh not a very large property. Um, and so we did not receive any feedback from any adjacent property owners other than the one to the south. Uh Bastion Bastion Investments is interested in redeveloping the site to the south. It's just over two acres in size. Um they're hoping to maybe use it as a secondary access into their property. Um let's see, it just makes more sense, of course, that it's assembled, and then um they're also working with our redevelopment program administrator for the redevelopment of the site. Um so the advantages of of course are just selling it for the appraised value of 165,000. Uh, it would be redeveloped. Uh Bastion Development is definitely looking at uh redeveloping the site soon, and so then the site would no longer be vacant since it has been vacant since 1985. Um of course we're just looking for the authorization to sell the property. So I'd be happy to answer any questions. So, mayor, real quick, I'll just add to that with this presentation. You know, having purchased that in the mid-80s, um, there is a series of ponding that happens behind the Tempe Canal in this area. That that property being one of the worst that continued to flood. Um topography-wise, that that site uh really is kind of the low point of that vape, those vacant properties that you see, and so despite maybe using that for ingress, egress or their development. Um it likely will have to be used for some level of retention also with their site too. So well, my thought was you know, again, an auction versus the sale of the property. Either way is fine with me. I just want to know a little bit more about I know this is an older uh neighborhood area, larger properties were assembled in that area back in probably the 20s and 30s, and and so some of the parcels are larger. And so I just thought I'd bring it up to council, see what their council member Haredi if what his thought was he represents the area and if he's okay with uh just the sell of a privately or he wants to go to an auction sometimes at an auction, you might get a higher price starting at the base price of the appraisal. Um I'll just come in. Uh you know, I'm okay with this.

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