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Record of Proceedings

Mesa City Council Study Session – October 26, 2026

Council Study Sessions — Monday, October 26, 2026
BodyMesa, Arizona
SessionCouncil Study Sessions
DateMonday, October 26, 2026
StatusNEW · FILED
Video Record
0:00 / 1:22:14

Original source
Transcript — VerbatimClick a timed line to jump · ⧉ to share it

Speaker numbers apply only to this recording.

Speaker 1

0:06

Well, good morning, everyone.

0:08

Welcome to our Mesa City Council study session for October 22nd, 2026.

0:13

And I'm sure we're all excited about the weather change for the last few days.

0:18

Hopefully nobody got any wind damage, rain damage, and I know it hit our city kind of hard in certain areas.

0:24

But with that said, Councilmember Heredia, you're participating by Zoom.

0:29

Are you online?

0:32

Yes.

0:32

All right, thank you.

0:34

Other than that, all council members are present as usual.

Unassigned speaker

0:37

Item was review the agenda we have for Monday, October 26th Council.

Speaker 1

0:42

So let's go through that.

Unassigned speaker

0:44

Do you

Speaker 1

0:44

have any questions?

0:46

We have everyone here.

Speaker 2

0:51

Mayor, I'd like to ask that we um review five F, the Craftsman tax incentive package, as well as

Unassigned speaker

0:59

you

Speaker 2

0:59

know, a 7B on the historic preservation amendments.

1:04

Should we wait until Monday?

1:05

Because it's more of just information for the public on the overhaul that's been going on.

Unassigned speaker

1:12

It's not really we could have something for decision, I think.

Speaker 2

1:17

But you know, I think

Speaker 3

1:18

it's more

Speaker 2

1:19

informational.

Speaker 3

1:19

Yeah, Mayor, uh Councilmember Duff.

1:22

The um what's on the agenda today is uh as it relates to the text amendments as for the introduction of the tax amendments in two weeks.

1:29

Both the final action for the tax amendments and the design guidelines will be on if you wanted to wait for that.

1:33

Yes.

1:34

So they're both there together, or we could talk about both of them on Monday if you want, but anyway you want to do it, but um staff is prepared to to talk to them at any time you want.

Speaker 2

1:44

Yeah, and let's wait for two weeks when we have the design guidelines in in conjunction with the text amendments.

1:50

That'd be great.

1:51

Thanks.

Speaker 4

1:52

Very good.

1:53

I think 5B is just public notice at this point,

Unassigned speaker

1:56

right?

Unassigned speaker

1:57

To

Speaker 4

1:58

review.

1:59

5F, sorry.

Speaker 5

2:00

Vice Mayor, yes, it this one is just public notice that's required by state statute to enter into this type of DA.

Speaker 4

2:06

I'll get my letters right when this is a little emptier.

Speaker 1

2:13

That was an this is an interesting uh project though, uh, 5F, the craftsman.

2:17

Do you want to I know there's a presentation for that?

2:20

Do you want to go through that?

Speaker 6

2:21

Yes, thank you, Mayor and Council.

2:22

I'm Jay O'Donnell, economic development director for the city, and joining me today is Kelly Whittemore, deputy city attorney, and we'll go through the the deal points of the craftsman.

2:33

So the the purpose of um the development agreement um or the meeting today is to go through the development agreement points and talk a little bit about the development uh itself.

2:43

So this is a planned elevated mixed-use development that is comprised of both residential apartments and nearly 40,000 square feet of retail and office space.

2:54

The retail will contain a minimum of 10,000 square feet of modern upscale restaurants, and we'll talk about the major terms and conditions for the proposed development agreement, um, and we'll provide the developer with a retail sack sales tax uh incentive for the reimbursement of the developer's contribution to toward public infrastructure costs along Elliott Road.

3:19

So just to orient you of the location, this is uh along Elliott Road, and it's in between Hawes and 82nd Street.

3:29

So the total site is just over 19 acres, um, and it's basically split 65 percent residential, 35 percent

Speaker 7

3:38

commercial.

Speaker 6

3:40

The development agreement structure um is set up so that the developer will construct the craftsman, including the public improvements on the east and west side of the entire development.

3:53

So 82nd Street and Hawes Road.

3:56

Then the city is constructing the Elliott Road frontage along the property as part of our uh CIP on Elliott Road.

4:06

So the developer will actually make a public improvement contribution toward the cost of the Elliott Road public improvements.

4:14

So they're contributing to this development, 775,000 in change.

4:19

Um that contribution to the infrastructure would then be eligible for reimbursement from construction sales tax and um sales tax that's generated by the product project if the developer meets certain minimum requirements, including having that 10,000 square feet of of modern upscale restaurants.

4:42

And you can see um the map shows specifically the public improvements along the development site.

4:49

Um this includes pavement, turn lanes, curb and gutters, sidewalks and landscaping, street lights, and striping.

Unassigned speaker

5:00

And again, the developer makes the public improvement contribution toward these costs along Elliott Road.

Unassigned speaker

5:05

And

Discussion Breakdown — Share of Meeting
Economic Development██████████████████████████████████34%
Zoning And Land Use██████████████████18%
Public Transportation█████████9%
Community Engagement██████6%
Procedural█████5%
Procurement█████5%
Solid Waste Management████4%
Transportation Safety████4%
Historic Preservation████4%
Summary of Proceedings

Mesa City Council Study Session – October 26, 2026

Note: The raw transcript identifies the session as October 22, 2026, while the supplied meeting timestamp is October 26, 2026; this summary uses October 26, 2026.

Council met to review upcoming agenda items, hear staff presentations, and discuss upcoming decisions. Councilmember Heredia participated by Zoom. It was a study session: no final action was taken on ordinances or agreements, but the council did acknowledge board minutes and adjourned.

Craftsman Development Agreement (Agenda Item 5F)

  • Economic Development Director Jay O'Donnell and Deputy City Attorney Kelly Whittemore presented the proposed development agreement for the Craftsman, a mixed-use project on Elliott Road between Hawes and 82nd Street.
  • The 19-acre site is planned as roughly 65% residential and 35% commercial, with nearly 40,000 sq ft of retail and office space, including at least 10,000 sq ft of modern, upscale restaurants.
  • The developer would contribute about $775,000 toward Elliott Road public infrastructure improvements. Reimbursement conditions include: permits within 6 months; public improvements along 82nd Street and Hawes Road completed and conveyed within 9 months; private improvements completed within 30 months; and qualifying restaurants open within 36 months.
  • Qualifying restaurants are described as chef-driven, full-service, distinctive concepts with fewer than 100 U.S. locations and no location within 10 miles inside Mesa. Council discussion raised the possibility of changing the exclusivity language to a full 10-mile radius; staff said the language could be adjusted.
  • The reimbursement would be capped at $775,000 over 10 years: 35% of the city's 1.2% non-dedicated construction sales tax and 50% of the city's 1.2% non-dedicated general sales tax generated by the project.
  • A third-party analysis by Applied Economics estimated $3 million in gross tax revenue over the 10-year reimbursement period plus construction, compared with the $775,000 reimbursement, and about 160 on-site jobs.
  • Staff said the next step was the required public notice of intent, with the full development agreement and economic analysis scheduled for the November 16 council meeting.

Terribles Commercial Development (Agenda Item 6A)

  • Staff presented a rezoning request for about 1.3 acres at Hampton and Crisman Road from planned employment park/PAD to limited commercial, with a special use permit and site plan review.
  • The project is a Terribles convenience store: about 4,600 sq ft of building and a 4,100 sq ft fuel canopy, with pedestrian connections to Chrisman Road and the neighboring Lincoln residential development.
  • The Design Review Board requested material consolidation for a more cohesive elevation; the Planning and Zoning Board voted 7-0 to recommend approval with conditions.
  • Councilmembers noted concerns about losing planned employment land and adding a vehicle-heavy use, but said staff had addressed many of the concerns. Vice Mayor asked about Terribles' crime-prevention record and police relationship as a new-to-Arizona business.

Solid Waste Mutual Aid and Fleet Purchases (Agenda Item 5G)

  • Staff discussed a valleywide intergovernmental agreement for solid waste mutual aid, used primarily for short-term emergency truck sharing; the borrowing city covers damage or maintenance.
  • The agenda also included purchase of seven diesel refuse trucks for the East Mesa Service Center, tied to a new third fleet-services shift. CNG vehicles cannot be serviced at that center, so diesel trucks are being purchased for east-side routes.

Grants, Contracts, and Transportation Items

  • Grants coordinator Sharon Skinner explained that tribal gaming funds pass through Mesa; the Salt River Pima-Maricopa Indian Community selects recipients and uses Mesa as a pass-through entity. The agenda item included $150,000 for South Canal and Lee High Shared Youth Path work.
  • Council recognized Skinner for 15 years and welcomed incoming grants coordinator Harmony Zolanka.
  • Staff requested $755,000 in additional spend authority on a water-system maintenance contract for work such as larger valve repairs, ahead of the contract's April 2027 expiration.
  • Staff presented a MAG arterial lifecycle program agreement for the Country Club/Southern corridor, with 70% reimbursement of construction costs, with the associated total stated as approximately $7.9 million. Council was told Proposition 400 funds must be spent by June 2028 and that the project would be disruptive but needed for safety on one of Mesa's busiest corridors.
  • The council also briefly noted the Mesa Town Center Improvement District No. 228 continuation resolution.

Community Updates and Council Reports

  • Councilmembers highlighted Mesa Nexus, Mesa Library's 120th anniversary and new Mesa Room digital history map, Empty Bowls, Together Mesa, Mesa Music Festival, Los Muertos, Phoenix Pride, domestic violence awareness night, Celebrate Mesa, new Dana Park retailers, Waymo/Mesa Gateway Airport discussions, Halloween events, and the Mesa Cemetery Tour.

Key Outcomes

  • No final action was taken on the development agreement, rezoning, grants, or contract items during the study session.
  • A motion to acknowledge receipt of board minutes passed unanimously.
  • The council adjourned by unanimous voice vote.

Meeting Transcript

Well, good morning, everyone. Welcome to our Mesa City Council study session for October 22nd, 2026. And I'm sure we're all excited about the weather change for the last few days. Hopefully nobody got any wind damage, rain damage, and I know it hit our city kind of hard in certain areas. But with that said, Councilmember Heredia, you're participating by Zoom. Are you online? Yes. All right, thank you. Other than that, all council members are present as usual. Item was review the agenda we have for Monday, October 26th Council. So let's go through that. Do you have any questions? We have everyone here. Mayor, I'd like to ask that we um review five F, the Craftsman tax incentive package, as well as you know, a 7B on the historic preservation amendments. Should we wait until Monday? Because it's more of just information for the public on the overhaul that's been going on. It's not really we could have something for decision, I think. But you know, I think it's more informational. Yeah, Mayor, uh Councilmember Duff. The um what's on the agenda today is uh as it relates to the text amendments as for the introduction of the tax amendments in two weeks. Both the final action for the tax amendments and the design guidelines will be on if you wanted to wait for that. Yes. So they're both there together, or we could talk about both of them on Monday if you want, but anyway you want to do it, but um staff is prepared to to talk to them at any time you want. Yeah, and let's wait for two weeks when we have the design guidelines in in conjunction with the text amendments. That'd be great. Thanks. Very good. I think 5B is just public notice at this point, right? To review. 5F, sorry. Vice Mayor, yes, it this one is just public notice that's required by state statute to enter into this type of DA. I'll get my letters right when this is a little emptier. That was an this is an interesting uh project though, uh, 5F, the craftsman. Do you want to I know there's a presentation for that? Do you want to go through that? Yes, thank you, Mayor and Council. I'm Jay O'Donnell, economic development director for the city, and joining me today is Kelly Whittemore, deputy city attorney, and we'll go through the the deal points of the craftsman. So the the purpose of um the development agreement um or the meeting today is to go through the development agreement points and talk a little bit about the development uh itself. So this is a planned elevated mixed-use development that is comprised of both residential apartments and nearly 40,000 square feet of retail and office space. The retail will contain a minimum of 10,000 square feet of modern upscale restaurants, and we'll talk about the major terms and conditions for the proposed development agreement, um, and we'll provide the developer with a retail sack sales tax uh incentive for the reimbursement of the developer's contribution to toward public infrastructure costs along Elliott Road. So just to orient you of the location, this is uh along Elliott Road, and it's in between Hawes and 82nd Street. So the total site is just over 19 acres, um, and it's basically split 65 percent residential, 35 percent commercial.

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