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OPENPUBLICA · PUBLIC MEETING RECORD

Record of Proceedings

Mesa City Council Study Session on Convention Center Management and Cannon Beach Hotel – August 13, 2026

Council Study Sessions — Tuesday, August 18, 2026

BodyMesa, Arizona

SessionCouncil Study Sessions

DateTuesday, August 18, 2026

StatusFILED

Video Record

0:00 / 1:38:00

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0:02

Good morning.

0:04

Welcome to the Mesa City Council study session for August 13th, 2026.

0:10

Mayor Freeman is out of town and is excused.

0:13

All other council members are present, although Councilmember Heredi is attending by Zoom.

0:20

I don't see him on yet.

0:20

Thank God.

0:21

Okay.

0:22

So Councilmember Heredia is running a few minutes behind.

0:26

So we'll just note when he uh he calls in.

0:30

Item number one is to review the agenda we have for our Monday, August 17th council meeting.

0:34

Let's go through that agenda if council has any questions.

0:39

Mr.

0:39

Butler, I know we have presentations set for 5A and 5B.

0:43

We do.

0:43

Yeah, okay.

0:44

So we'll skip 5A and 5B for now.

0:47

Does anybody have any questions or comments on the remainder of the agenda?

0:55

Seeing none, why don't we start with 5A?

0:58

All right.

0:59

So staff have come up and uh Vice Mayor Council.

1:04

We're uh really excited where we've made it to this day where we're bringing um contract forward for your consideration with Legends Global for management of the convention center.

1:16

And I know uh this is one uh opportunity that we had discussed um as sets the stage for bringing in uh all the types of uh hospitality and uh maximizing the use of the convention center uh in in ways that um we as an independent operator were not uh able to do, and so um so we're really glad that we've after a competitive process gotten into this point for your consideration.

1:46

I'll turn it over to Candice and she can now walk you through uh everything that's led us to this point.

1:53

Good mayor, good morning, uh Vice Mayor and Council.

1:56

Um I'm Candice Canastrao, Deputy City Manager, and I'd like to um introduce the team that we have up here with us today.

2:03

So to my right is uh Brad Gessner, he is our consultant that we used on this particular project since this is the first time we've looked into this type of a public-private partnership.

2:12

He is a uh former senior vice president of AEG Global previously, and about and decades of experience in this industry, so we were very helpful um glad to have him on this project.

2:24

Uh to my left, we have uh Harry Kahn.

2:28

He is the senior vice president of business development for Legends Global, which is the contractor we are proposing to enter into an agreement with.

2:35

Um, and to his left is Tyler Othon.

2:38

You some of you may have remembered him from last year, so he uh is with CSL.

2:43

CSL did the feasibility study for us when we were looking at what improvements we would need to modernize the convention center and the amphitheater, and so he presented to you last March of 20 um 25.

2:55

Um so with that we will start into the presentation.

2:58

All right, and council member Heredia is online.

3:01

Okay, okay.

3:03

Um, this just gives an overview.

3:04

What we're talking about here is the Mesa Convention Center, the Mesa Amphitheater.

3:08

It is all on one campus, um, situated near center and university.

3:13

This is kind of an overview of that.

3:15

Also gives an overview of the timeline.

3:17

So we did put out a request for proposals uh back in February.

3:21

Uh we've worked through that over this last uh over the spring and into into summer now.

3:26

We had the top two proposals come in and give presentations to staff so we could ask them questions about their management style and how this particular type of partnership works.

3:35

Um we are here now proposing to enter into a contract with Legends Global, who was the top proposal.

3:43

Why are we willing why are we going into this?

3:45

This is a public-private partnership, and I want to explain that a little bit in the fact that the city will still retain the ownership of all of the facilities.

3:54

Um we still fund the operations of this, so this part of it doesn't change.

3:58

The part of it is uh coming in with a partner who has industry specialty and expertise to come in and do the actual management.

4:05

Um that management doesn't mean just the daily management, but also we're we have access to now their network.

4:10

So they're an international company.

4:12

Um, they have access to acts and other other entities and contracts and so forth, and so that can really bring that to it.

4:20

They'd be coming in with strategic management.

4:22

Where do we want to go with this campus?

4:23

Where do we want to go with these facilities?

4:25

Um, they would take over the daily operations of it, meaning it would be their employees who actually work on this site.

4:31

They would be responsible for the marketing and advertising for any type of sales, ticketing, rentals, um, everything that we currently do today.

4:39

And then we all they also bring with them because CSL is an affiliate organization with Legends Global.

4:45

They bring that expertise that we already tapped into last year, which is what do we need to modernize, what do we need to monetize, uh, what type of capital improvements would we need to make?

4:55

How do we really put a strategic plan around this particular campus and what we want to see out of it for our downtown and for our residents?

5:04

This just gives you an overview, and I apologize, it should be intent of management contract, not contracted.

Discussion Breakdown — Share of Meeting

Economic Development█████████████████████████████████████████████50%

Utility Fund Management█████████████████████23%

Public Engagement█████6%

Tourism█████6%

Procedural█████5%

Arts And Culture█████5%

Personnel Matters███3%

Disability Rights█1%

Pending Litigation█1%

Summary of Proceedings

Mesa City Council Study Session – August 13, 2026

The Mesa City Council held a study session on August 13, 2026, to discuss two major items: a proposed public-private partnership with Legends Global to manage the Mesa Convention Center and Amphitheater, and a development agreement for the Cannon Beach Hotel project. The council also approved routine consent items and convened an executive session to discuss litigation. Mayor Freeman was absent and excused; all other council members were present, with Councilmember Heredia joining remotely.

Consent Calendar

Council unanimously approved appointments to various boards and commissions (Item 2A) and acknowledged receipt of board minutes (Item 3A).

Discussion Items

Legends Global Management Agreement

City staff presented a proposal to enter into a 62-month contract (two-month transition starting September 1, 2026, then five-year management starting November 1, 2026) with Legends Global to manage the Mesa Convention Center and Amphitheater. The city retains ownership and continues to fund operations. Legends Global would handle daily management, marketing, sales, and ticketing, leveraging its global network.
Key financial terms: monthly management fee of $14,000; 4% on gross food and beverage sales and 8% on net sales; annual performance incentive up to $50,000; annual quantitative incentive fee of 20% of adjusted gross income above agreed benchmarks; sponsorship commission of 20%; one-time upfront capital contribution of $500,000; annual community contribution of $10,000; coverage of transition costs.
Councilmembers expressed strong support, noting the partnership would maximize revenue from the venues, reinvest proceeds into capital improvements, and avoid burdening taxpayers. Questions addressed limitations of current facilities, plans to attract higher-value conventions and artists, integration with downtown development (e.g., light walk, local food and beverage), employee transition (no layoffs), and contractual safeguards.
Harry Kahn (Legends Global) and Tyler Othon (CSL, affiliate) presented the company's experience managing 450 venues globally, including 20+ amphitheaters, and emphasized a focus on local products, immersive experiences, and data-driven operations.

Cannon Beach Hotel Development Agreement

Jay Wiener (Economic Development Director) and Sarah Steadman (Assistant City Attorney) presented a development agreement for an upscale hotel (minimum 130 rooms, rooftop deck, event space, restaurant, etc.) by Cannon Beach on a 1.3-acre site at Warner Road and Power Road.
The city would provide a sales tax reimbursement of up to $950,000 for public infrastructure improvements (paving, turn lanes, sidewalks, etc.) funded by 1.2% non-dedicated transaction privilege tax (TPT) from the project: 100% of construction sales tax and 50% of retail sales tax, over a 10-year term (estimated to reach cap in 8 years).
An independent economic analysis by Applied Economics projected the project would generate more than 10 times the reimbursement amount in city revenues over 10 years. Councilmembers praised Cannon Beach's track record and the hotel's quality, noting nearly one million visits to the Cannon Beach campus in the past 20 months.
Next steps: Notice of intent resolution on August 17, 2026, and development agreement resolution on September 14, 2026.

Key Outcomes

The council took no formal vote on the Legends Global agreement during this study session; it will be considered at a future meeting.
The council unanimously voted to convene an executive session to discuss potential litigation, and afterward voted unanimously to direct the city attorney to file a lawsuit against fire apparatus manufacturers and to retain legal counsel for that purpose.
Consent items (appointments and minutes) were approved unanimously.
The study session adjourned following the executive session and vote.

Meeting Transcript

Good morning. Welcome to the Mesa City Council study session for August 13th, 2026. Mayor Freeman is out of town and is excused. All other council members are present, although Councilmember Heredi is attending by Zoom. I don't see him on yet. Thank God. Okay. So Councilmember Heredia is running a few minutes behind. So we'll just note when he uh he calls in. Item number one is to review the agenda we have for our Monday, August 17th council meeting. Let's go through that agenda if council has any questions. Mr. Butler, I know we have presentations set for 5A and 5B. We do. Yeah, okay. So we'll skip 5A and 5B for now. Does anybody have any questions or comments on the remainder of the agenda? Seeing none, why don't we start with 5A? All right. So staff have come up and uh Vice Mayor Council. We're uh really excited where we've made it to this day where we're bringing um contract forward for your consideration with Legends Global for management of the convention center. And I know uh this is one uh opportunity that we had discussed um as sets the stage for bringing in uh all the types of uh hospitality and uh maximizing the use of the convention center uh in in ways that um we as an independent operator were not uh able to do, and so um so we're really glad that we've after a competitive process gotten into this point for your consideration. I'll turn it over to Candice and she can now walk you through uh everything that's led us to this point. Good mayor, good morning, uh Vice Mayor and Council. Um I'm Candice Canastrao, Deputy City Manager, and I'd like to um introduce the team that we have up here with us today. So to my right is uh Brad Gessner, he is our consultant that we used on this particular project since this is the first time we've looked into this type of a public-private partnership. He is a uh former senior vice president of AEG Global previously, and about and decades of experience in this industry, so we were very helpful um glad to have him on this project. Uh to my left, we have uh Harry Kahn. He is the senior vice president of business development for Legends Global, which is the contractor we are proposing to enter into an agreement with. Um, and to his left is Tyler Othon. You some of you may have remembered him from last year, so he uh is with CSL. CSL did the feasibility study for us when we were looking at what improvements we would need to modernize the convention center and the amphitheater, and so he presented to you last March of 20 um 25. Um so with that we will start into the presentation. All right, and council member Heredia is online. Okay, okay. Um, this just gives an overview. What we're talking about here is the Mesa Convention Center, the Mesa Amphitheater. It is all on one campus, um, situated near center and university. This is kind of an overview of that. Also gives an overview of the timeline. So we did put out a request for proposals uh back in February. Uh we've worked through that over this last uh over the spring and into into summer now. We had the top two proposals come in and give presentations to staff so we could ask them questions about their management style and how this particular type of partnership works. Um we are here now proposing to enter into a contract with Legends Global, who was the top proposal. Why are we willing why are we going into this? This is a public-private partnership, and I want to explain that a little bit in the fact that the city will still retain the ownership of all of the facilities. Um we still fund the operations of this, so this part of it doesn't change. The part of it is uh coming in with a partner who has industry specialty and expertise to come in and do the actual management. Um that management doesn't mean just the daily management, but also we're we have access to now their network. So they're an international company.

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