Mesa City Council Study Session - July 16, 2026

The Mesa City Council held a study session on July 16, 2026, to review the upcoming July 20 council meeting agenda, discuss zoning amendments for fleet-based services including drones, receive direction on HUD and human services funding, and review a development agreement for the OVO mixed-use project near the Sycamore Light Rail Station. The meeting also included an executive session on Falconfield's airport landing fees, approval of appointments, and acknowledgment of board minutes.

Discussion Items

• Executive Session: The council convened an executive session regarding Falconfield's airport landing fees, then reconvened the study session with all members present.

• Agenda Review for July 20 Council Meeting: Councilmember Taylor raised concerns about item 8B, zoning text amendments for unmanned fleet services (drones) and electric vehicle charging. Staff presented a comprehensive update on the proposed amendments, which create new definitions for light fleet-based services (≤50 vehicles, <10,000 lbs, <10,000 sq ft), heavy fleet-based services, and accessory fleet services. The amendments also address service stations for electric vehicle charging.

  • Councilmember Taylor's Position: Expressed strong support for the city's proactive approach but raised concerns about drone charging station placement, noise, and the "beehive effect" of constant drone activity. She advocated for larger setbacks (beyond 100 feet) and questioned the allowed height of docking poles (30 feet proposed).

  • Councilmember Adams' Position: Opposed allowing 27-foot poles for drone docking, preferring ground-based landing pads to avoid visual blight. He questioned why poles must be accepted and suggested limiting height or requiring roof-mounted docking.

  • Councilmember Duff's Position: Supported poles as a more efficient land use, noting that multiple drones can dock on a single pole and that ground pads waste space. She favored allowing poles in industrial districts and suggested a CUP (conditional use permit) for zones near residences. She also noted that electric vehicles and drones are quieter than traditional fleets.

  • Legal Counsel (Kirsten Devorchak): Clarified that state legislation (HB 2875) preempts the city from regulating drone operations in the air, but the city can regulate land use uniformly for all fleet services. The city has a window to pass the ordinance before the legislation's effective date (September 2026).

  • Council Direction: After debate, the council reached consensus to:

    • Increase the residential setback from 100 feet to 150 feet for all fleet-based services (including charging equipment) to align with the state statute.
    • Maintain the ability for the planning director to grant exceptions via a sound study.
    • Consider limiting pole height to 30 feet (as proposed) but further explore options to restrict poles in limited commercial (LC) districts, possibly via a CUP.
    • Staff will revise the ordinance and bring it back for introduction on Monday, July 20.

• Item 7B: Accessory Dwelling Units (ADUs): Councilmember Taylor asked about modifications to standards for detached accessory buildings and ADUs. Staff explained the change aligns with the building code, reducing the fire separation requirement from 6 feet to 5 feet, as mandated by state law.

• Item 4A: HUD and Human Services Funding for FY 2027-2028: Staff presented options for allocating federal CDBG, HOME, ESG funds and local Human Services/ABC funds. The recommended approach is to retain federal funds for city-led eligible projects (rather than a competitive nonprofit process) and continue a competitive process for Human Services and ABC. Councilmember Duff expressed concerns about ensuring human services needs are met but supported the new model. Councilmember Heredia wanted to retain partnerships with nonprofits. Council gave direction to proceed with the staff recommendation, with the understanding that council members will work with staff to identify district-specific projects and ensure eligible activities. Staff will provide maps of low-moderate income census tracts and eligible activities.

• Item 4B: OVO Development Agreement and GIPLAT: Staff presented a development agreement and government property lease excise tax (GIPLAT) for OVO, a five-story, 191-unit market-rate mixed-use project with 5,700 sq ft of ground-floor commercial at the former Tri-City Mall site (Dobson and Main). The project is already under construction. Key economic impacts: $136 million total economic impact over 10 years, 500 construction jobs, 28 permanent jobs, $5.2 million in direct tax revenue ($920,000 to the city, including a guaranteed $520,000 in construction sales tax). The GIPLAT provides an eight-year property tax abatement, with in-lieu payments to school districts and a $500,000 lump-sum payment to the city for redevelopment (planned for the restaurant incubator basement). The developer will also improve the adjacent transit center (demolish closed restroom, repair sidewalks, improve safety). Council members expressed support for the project, noting its role in activating the Asian District and leveraging the light rail station. The item will return for action on August 17.

• Appointments and Board Minutes: The council approved appointments to the Historic Preservation Board, Economic Development Advisory Board, and Board of Adjustment/Design Review Board (motion carried unanimously). The council also acknowledged receipt of board minutes (motion carried unanimously).

Key Outcomes

• Executive Session: Convened and reconcluded without further action.
• Fleet Services Zoning Amendments: Council directed staff to increase the residential setback to 150 feet, explore restricting poles in LC districts, and bring a revised ordinance for introduction on July 20.
• HUD Funding: Council directed staff to proceed with reserving federal funds for city-led projects and continue a competitive process for Human Services and ABC, with council members to identify district priorities.
• OVO Development Agreement: Council expressed support; the item will be on the August 17 consent agenda for action.
• Appointments and Minutes: Approved unanimously.
• Future Meetings: Study session on July 20 will review the July 27 agenda (no study session on July 23). The council also noted the record attendance (over 50,000) at the Mesa Celebration of Freedom event.