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OFFICE OF THE CITY CLERK
COUNCIL MINUTES
June 4, 2026
The City Council of the City of Mesa met in the Study Session room at City Hall, 20 East Main Street, on
June 4, 2026, at 7:30 a.m.
COUNCIL PRESENT
COUNCIL ABSENT
OFFICERS PRESENT
Mark Freeman*
Scott Somers
Rich Adams
Jennifer Duff
Alicia Goforth
Francisco Heredia*
Dorean Taylor
None
Scott Butler
Holly Moseley
Jim Smith
(*Participated in the meeting through the use of video conference equipment.)
Vice Mayor Somers conducted a roll call.
Vice Mayor Somers excused Councilmember Adams from the beginning of the meeting, he
arrived at 7:31 a.m.
1.
Review and discuss items on the agenda for the June 8, 2026, Regular Council meeting.
All of the items on the agenda were reviewed among Council and staff and the following was
noted:
Conflict of interest: None
Items removed from the consent agenda: None
In response to a request from City Manager Scott Butler regarding agenda Item 4-c, (Dollar Limit
Increase to Use of the Cooperative Term Contract for Route Planning and Management
Solutions as Requested by the Solid Waste Department and Department of Innovation and
Technology (Citywide)), on the Regular Council meeting agenda, Solid Waste Director Sheri
Collins displayed a PowerPoint presentation. (See Attachment 1)
Ms. Collins provided an overview of the proposed purchase to upgrade the external-facing
cameras on solid waste vehicles. She explained that the current cameras are between six and
ten years old and pointed out that an upgraded camera system would provide advanced safety
features, including pedestrian collision warnings, blind spot detection, comprehensive vehicle
coverage, high-definition video, and real-time in-cab safety assistance for drivers. (See Page 2 of
Attachment 1)
Study Session
June 4, 2026
Page 2
Ms. Collins compared the current system features to the proposed cloud-based system and
highlighted the benefits, such as cloud storage, easier video preservation, and remote access.
She stated the current system requires physical access to vehicles to retrieve videos, which can
be difficult because the trucks operate six days a week on long shifts. She discussed the AI safety
features included in the proposed system and coaching tools that are not available with the current
equipment. She presented a comparison of the existing camera footage and the proposed high-
definition footage. (See Pages 3 and 4 of Attachment 1)
Ms. Collins detailed the safety features, including upgraded external cameras to provide
pedestrian warnings and other safety alerts to the driver through the in-cab screen, flashing
indicators, and audible alarms. She noted that solid waste trucks are typically kept for longer than
10 years, and the proposed camera upgrades would allow the City of Mesa (COM) to add newer
safety features without replacing the vehicles. She explained that the system would alert drivers
when they are following too closely, when someone is behind the vehicle, or when a pedestrian
is detected, helping to improve driver awareness and overall safety.
Discussion ensued regarding the enhanced safety features included in the proposed camera
system and the training that would be provided to drivers during implementation.
Responding to a question from Councilmember Taylor, Ms. Collins explained that the COM
currently has a lease with the Brigade video system and pays approximately $120,000 per year.
She stated that the proposed upgrade would increase the annual cost by approximately $30,000
for 123 vehicles and would include system upgrades. She reiterated that the new technology and
image quality are significantly improved compared to the current system.
Vice Mayor Somers thanked staff for the presentation.
Responding to a request from Councilmember Taylor regarding agenda Item 4-d, (Purchase of
Solar-Powered Portable Traffic Signal Trailers for the Transportation Department. (Sole
Source) (Citywide)), on the Regular Council meeting agenda, Transportation Department
Director Erik Guderian explained that temporary signal trailers will be placed at the intersection of
Higley Road and Longbow Parkway due to increased truck traffic associated with the refilling of
the nearby quarry. He noted that approximately 500 trucks per day are currently operating in the
area, with the potential to increase to 800 or 900 trucks per day. He reported that the project is
expected to take 12 to 18 months; therefore, the temporary signal trailers will remain in place
during that time and may be reused at other locations as needed due to continued growth and
construction activity.
In response to a question from Councilmember Goforth, Mr. Guderian confirmed that the COM
has several emergency trailers that can be used when a signal pole is damaged or knocked down;
however, those trailers do not extend far enough across the street to place signal heads over
multiple travel lanes.
City Manager Scott Butler added that the increased truck traffic is associated with Johnson
Stewart Materials, which recently shifted fill operations from the Loop 202 and Alma School Road
area to this location. He stated that the number of trucks increased significantly and quickly,
creating safety concerns that could not wait 12 to 18 months for a permanent signal to be installed.
He pointed out that the company has been cooperative and will participate financially due to the
additional burden placed on the traffic system.
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June 4, 2026
Page 3
In response to a question from Councilmember Taylor regarding agenda Item 5-b, (Approving
and authorizing the City Manager to enter into a funding agreement with Valley Metro Rail,
Inc., for the current light rail operations in the City of Mesa. The estimated cost of service
for operations, maintenance and facility landscaping of the existing light rail line for fiscal
year 2026/27 is $21,148,000. The City anticipates receiving $2,866,000 in light rail fares,
advertising, preventive maintenance grant and Arizona Lottery Funds for a net impact to
the City’s General Fund of $18,282,000. (Districts 3 and 4)), on the Regular Council meeting
agenda, Transit Services Director Jodi Sorrell displayed a PowerPoint presentation. (See
Attachment 2)
Ms. Sorrell clarified that the agreement approved in January was for Fiscal Year (FY) 2026 and
that the light rail and Regional Public Transportation Authority (RPTA) agreements were
presented together to provide transparency and reduce confusion. She explained that bus costs
are generally presented as net costs, while light rail costs are presented as gross costs.
Ms. Sorrell reported that the FY 2026 light rail gross cost was approximately $18 million, with a
net cost of approximately $16 million, and that the FY 2027 gross cost is approximately $21
million, with a net cost of approximately $18 million. She explained that the increase is partly due
to continuing operating commitments, such as contractor costs, inflationary adjustments, fuel, and
other service-related expenses, as well as the transition from Proposition 400 to Proposition 479.
She noted that certain rail-related costs previously funded under Proposition 400 are not funded
under Proposition 479, including future project development and systemwide improvements. She
further stated that Valley Metro reduced approximately $11.5 million in administrative costs and
that the overall rail budget is divided among the three rail cities based on the amount of rail
operated in each city. (See Page 2 of Attachment 2)
Ms. Sorrell reviewed the RPTA agreement for bus service, stating that it totals approximately
$41.1 million and funds 20 bus routes, paratransit, and RideChoice programs. She confirmed that
the agreement includes funding for four routes that are not currently eligible for funding under
Proposition 400 and represents an increase of approximately $2.4 million. She discussed the bus
network redesign program, explaining that Valley Metro is studying where the most productive
routes are located and where regional funding should be invested. She added that
recommendations would be ready for community review in the fall. (See Page 3 of Attachment 2)
Mr. Butler added that the FY 2026 agreement was brought forward in January due to delays in
negotiations between the City of Mesa and Valley Metro on the bus master funding agreement,
which is renegotiated every seven years. He noted that the timing was unusual and not the City’s
normal practice.
Responding to a question from Councilmember Adams, City Attorney Jim Smith explained that
the City’s light rail obligations are governed by several agreements, including the Joint Powers
Agreement that created Valley Metro as a separate legal entity. He advised on the potential
consequences and financial implications if Mesa were to withdraw from the agreements.
Mr. Butler added that the Valley Metro budget is subject to significant annual review and scrutiny
by the COM and the other member cities.
Councilmember Heredia commented that the COM remains actively engaged in Valley Metro
discussions through his service on the Valley Metro Board and related committees focused on
governance, budget, and operations. He stated that Valley Metro has placed increased emphasis
on cost savings, operational efficiencies, staffing needs, and the removal of unnecessary
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June 4, 2026
Page 4
positions. He noted that, as a major city with both bus and light rail service, the COM is integrated
into regional transit discussions, although coordinating a regional network with multiple member
cities remains challenging.
In response to a question from Councilmember Heredia, Ms. Sorrell confirmed that Valley Metro
entered into an agreement with a new security vendor in May 2025, which has resulted in
increased enforcement and visibility throughout the system. She reported that security incidents
have decreased significantly, noting that Valley Metro has reported approximately two to three
incidents per 100,000 boardings. She added that while the increased security efforts have
improved safety and visibility, they also contribute to some additional costs.
Ms. Sorrell explained that the FY 2027 light rail budget includes a gross cost of approximately
$21.1 million, with revenues from fares, advertising, preventative maintenance, and Arizona
Lottery funds expected to reduce the net cost to approximately $18.3 million. She stated that the
budget includes $1 million for future project development and $300,000 for systemwide
improvements, which are not covered under Proposition 479, and represents a $3.2 million
increase over FY 2026. (See Page 4 of Attachment 2)
Ms. Sorrell reported that light rail ridership statistics through April 2026 show recovery more
consistent with national peer systems, while bus ridership has not rebounded at the same pace.
She explained that Valley Metro delayed adding bus service during the transition from Proposition
400 to Proposition 479 to avoid investing in routes that may later be modified through the bus
network redesign process. She stated that the redesign is expected to improve ridership and
system efficiency, with service changes anticipated in October 2027 following public comment,
Title VI analysis, outreach, and other required steps. She clarified that ridership data is based on
passenger counters and fare data and reflects total trips rather than individual or new riders. She
commented that Valley Metro conducts onboard studies approximately every three years and
uses ridership data to evaluate travel patterns, including commuter, special events, and weekend
ridership. (See Page 5 of Attachment 2)
Councilmember Duff stated that the benefits of light rail extend beyond ridership and include
significant economic development and private investment along the corridor. She listed downtown
projects and redevelopment that may not have occurred without light rail and emphasized that
transit should be viewed as an economic asset rather than solely as a transportation service. She
pointed out that the City's 2050 General Plan identifies a connected transportation system as a
key community goal and that transit is an important component of Mesa's overall mobility network.
She noted that transportation funding supports multiple modes, including roads, freeways, and
transit, through a combination of regional sales tax, local sales tax, user fees, and federal funding.
Responding to a comment from Councilmember Duff, Mr. Guderian confirmed that the
Transportation Department’s roadway operations and maintenance budget for the upcoming
fiscal year is approximately $58 million, with funding split roughly between the local street sales
tax and Highway User Revenue Fund revenues. He added that approximately $30 million is also
budgeted for lifecycle projects, funded through the same sources.
Vice Mayor Somers thanked staff or the presentation.
2-a.
Hear a presentation and discuss an update on the development of the downtown Restaurant and
Food Incubator and the lease agreement with Local First Arizona to operate "Main Street Market".
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June 4, 2026
Page 5
Manager of Urban Transformation Jeff McVay introduced Kimber Lanning, CEO of Local First
Arizona, and displayed a PowerPoint presentation. (See Attachment 3)
Mr. McVay provided a brief overview of the American Rescue Plan Act (ARPA)-funded food
business incubator project at 111 West Main Street, which the COM purchased in 2022. He
explained that the project included a first-floor public food hall intended to serve as a training
ground for future restaurateurs, as well as a basement designed for additional classroom space,
a production kitchen, and support for food-related businesses such as caterers. He confirmed that
180 Degrees Design Build had been selected as the contractor using a design-build method with
benefits of cost containment and the ability to address issues that may arise during construction.
He stated that although the contract included final design for the first floor and basement,
construction cost increases resulted in the basement being completed to a warm shell condition,
with mechanical, electrical, and plumbing improvements in place for future buildout. He reported
that the construction contract amount is approximately $4.57 million. He highlighted the building’s
prior uses, with its former supermarket design serving as the inspiration for the exterior
architecture. (See Pages 2 through 4 of Attachment 3)
Mr. McVay displayed exterior renderings of the project and stated that, while construction is still
underway, the project is expected to create a strong presence downtown. (See Page 5 of
Attachment 3)
Ms. Lanning highlighted interior renderings of the building and indicated that the COM is working
with Holly Street Studios on the interior design of the food hall. She explained that the permanent
infrastructure will use neutral tones so each individual food concept can incorporate its own
branding, signage, and identity. She noted that the food hall will include seven food concepts with
seating, and the former bank vault will be repurposed as a private dining and gathering space for
meetings. She added that the food hall is intended to offer a variety of food options for families
and visitors. (See Pages 6 through 8 of Attachment 3)
Ms. Lanning expressed appreciation for the long-standing partnership between the COM and
Local First Arizona (LFA). She provided an overview of LFA’s existing incubator kitchen model in
the COM, which currently supports approximately 20 food entrepreneurs in 2,500 square feet.
She stated that the program assists a variety of food businesses and participants receive business
consulting, workshops, mentoring, assistance with food costing and profitability, support with
licensing and business formation, and access to additional revenue opportunities. She reported
that the program has a 78% success rate after five years and stated that the goal is to provide
small businesses with a longer runway for long-term success, rather than fully subsidizing them.
(See Page 9 of Attachment 3)
Ms. Lanning explained that businesses that participate in LFA programs are required to complete
a two-year incubation program before moving into the food hall for an additional two- to three-
year period, with the goal of helping them establish permanent locations in Mesa. She highlighted
LFA’s broader business accelerator programs, farm-to-table efforts, local sourcing, hospitality
workforce training, and focus on ensuring home-based food businesses comply with cottage
industry laws and food safety requirements. (See Pages 10 and 11 of Attachment 3)
Mr. McVay explained that the proposed lease with LFA would allow the organization to operate
the restaurant incubator. He confirmed that the initial lease term would be 10 years, with three
optional five-year renewals upon mutual agreement, for a total potential term of 25 years. He
noted that, since the program is intended to benefit the COM through small business
development, rent would be set at $10,000 per year for the first 10 years and would increase by
Study Session
June 4, 2026
Page 6
$5,000 annually with each renewal period. He pointed out that over a 25-year term the total rent
would be approximately $400,000, which would be held separately to offset potential landlord
costs, such as building maintenance or major equipment replacement. He noted that the lease
includes typical commercial landlord-tenant responsibilities due to the building’s use as a
commercial kitchen and public food hall. (See Page 12 of Attachment 3)
Mr. McVay stated that LFA would be required to provide the incubation program, including a
minimum of five annual participants in the food hall stalls, with the ability to include up to two
established restaurateurs as mentors and building anchors. He explained that the lease also
allows LFA to build out the basement in the future, which would increase annual program capacity
to 80 participants and provide space for additional classes and programming. He affirmed that
any profits must be reinvested into the program, the food hall must be open to the public six days
per week for eight hours per day, and LFA must provide quarterly reporting due to the project’s
ARPA funding obligations. (See Page 13 of Attachment 3)
At 9:42 a.m., Vice Mayor Somers excused Councilmember Heredia from the remainder of the
meeting.
Responding to a question from Councilmember Duff, Mr. McVay confirmed that completing the
basement buildout during current construction would be more efficient and would avoid significant
disruption.
Discussion ensued regarding the benefits of completing the basement during the current
construction.
Mr. McVay stated that the lease agreement is scheduled to return to Council for action on Monday,
June 8. He noted that construction is anticipated to be completed in October, followed by a brief
ramp-up period to prepare the space, with LFA expected to begin operating the incubator in
January 2027.
In response to a question from Councilmember Taylor, Ms. Lanning identified examples of
businesses that have participated in LFA programs. She highlighted Colados Coffee & Crepes for
graduating from the Forza Local program and expanding to three locations, while Goat and Ram
Pizza came through the incubator kitchen program and operates in downtown Mesa. She
explained that the proposed food hall would be conceptually similar to other multi-concept food
spaces but would be unique in Arizona as a next step in the incubator model. She stated that LFA
currently operates five incubator kitchens in the Valley, with a sixth planned, each supporting
approximately 18 to 24 businesses at a time.
Mr. McVay added that the building’s location on the south side of the street provides a strong
opportunity for shaded outdoor dining and sun protection. He reiterated that extending patio
seating beyond the building frontage could increase total seating capacity by approximately 25%,
with nearly 40 outdoor seats anticipated, and would include greenery and umbrellas, creating an
attractive and welcoming space.
Responding to a question from Vice Mayor Somers regarding additional funding for the basement
buildout, Mr. Butler clarified that the major mechanical components are included in the current
construction scope and explained that if Council desired to complete the basement buildout, staff
could evaluate potential funding options and return with additional information. He added that the
existing design-build contract may allow the work to be added as a scope addition or change
order.
Study Session
June 4, 2026
Page 7
Assistant City Engineer Marc Ahlstrom advised that the design-build contract was developed in
coordination with Legal staff and would need to be reviewed to determine the appropriate process.
He noted that it may be possible to use the same contractor to negotiate and execute an additional
contract; however, further review would be needed to confirm whether that approach is allowable.
Discussion ensued regarding the project timeline and ARPA funding requirements.
Responding to a question from Councilmember Adams, Mr. McVay reiterated that, although the
project involves an older building, the complete improvements will result in a new facility with
major building issues addressed. He explained that the lease structure is intended to help offset
COM landlord costs, with the initial $10,000 annual rent and future rent increases set aside for
maintenance and repair needs. He noted that annual rent revenue may help cover routine
maintenance, while accumulated rent over 10 to 15 years could assist with larger system repairs
or replacements.
In response to a question from Councilmember Taylor regarding a backup plan if LFA were unable
to continue operating the space, Mr. McVay stated that the COM anticipates LFA will remain
involved for the full lease term. He added that food halls are common and popular in other
communities, and the completed space is expected to be attractive to a private operator or another
nonprofit interested in continuing similar programming.
Councilmember Duff expressed support for the project, stating that it would create unique local
experiences that have contributed to downtown Mesa’s success. She noted that the incubator
would support new businesses that could eventually expand elsewhere in the COM, while helping
maintain the local character and vibrancy of downtown. She stated that as downtown continues
to grow and lease rates increase, the incubator provides an opportunity for small food
entrepreneurs to develop their businesses and prepare for permanent locations.
Mayor Freeman noted the opportunity to engage with the East Valley Institute of Technology
(EVIT) culinary program and stated that the project would provide additional reasons for people
to come downtown. He emphasized the importance of completing the full buildout and noted that,
as owners of the property, the COM has an opportunity to continue the building’s historic tradition
as a market and community gathering place.
Vice Mayor Somers thanked staff for the presentation.
2-b.
Hear a presentation and discuss an overview of the U.S. Foreign-Trade Zone Program and
Operator Agreement for MGC Pure Chemicals America, Inc.
Economic Development Director Jaye O’Donnell introduced Economic Development
Administrator Chris Molnar and displayed a PowerPoint presentation. (See Attachment 4)
Ms. O’Donnell clarified that the Foreign-Trade Zone (FTZ) program is not a special tax giveaway
or direct City subsidy, but a long-standing federally authorized program available to qualifying
companies. She explained that the program is intended to encourage companies to manufacture,
assemble, and invest in the United States by simplifying customs processes and avoiding
duplicative duties on imported components used in domestic production. She noted that FTZs
help make communities such as the COM more competitive for manufacturing, logistics, and
technology operations that might otherwise be located internationally. She confirmed that the
COM has administered a citywide FTZ program for several years, with benefits governed by
Study Session
June 4, 2026
Page 8
federal law and overseen by the federal FTZ Board and U.S. Customs and Border Protection.
She commented that participating companies must meet federal requirements and continue to
pay local property taxes, utility costs, development fees, and other applicable taxes and fees.
(See Page 2 of Attachment 4)
Ms. Molnar provided a brief overview of FTZ No. 221, which was established in April 1997 under
FTZ Board Order 883 at the former Williams Gateway Airport. She explained that the original
zone included just over 3,000 acres and was intended to support international trade, high-tech
and aerospace-related development, and large-scale development opportunities around the
airport. She stated that the zone was reorganized in 2008 to add acreage south of the airport and
remove areas not eligible for FTZ activity, such as terminals, landing strips, and taxiways,
reducing the current magnet site to just over 2,000 acres. (See Page 3 of Attachment 4)
Ms. Molnar explained that in July 2022, the COM reorganized the FTZ to include the entire COM
boundaries under the Alternative Site Framework, which allows for a faster and more streamlined
process for minor boundary modifications. She noted that these applications can typically be
reviewed and approved within 30 to 45 days, compared to the longer timeline under the prior
framework. She reported that Mesa currently has two activated FTZ sites, with additional
applications expected to come before Council in the future. She reviewed eligible FTZ activities
and noted that production activity requires an additional approval process, and retail trade is not
permitted within FTZs. (See Pages 4 through 6 of Attachment 4)
Responding to a question from Councilmember Goforth, Ms. O’Donnell verified that there are
currently no FTZ sites located near Falcon Field, but that the new framework could attract that
type of business to that area.
Ms. Molnar pointed out that FTZs are especially valuable for companies that export finished
goods, assemble products using imported components, manage a high volume of international
trade, expand U.S. manufacturing or distribution operations, or seek to optimize their supply
chains. She listed examples of FTZ user benefits that provide a stronger competitive edge. She
emphasized that the program is particularly beneficial to sectors such as life sciences,
pharmaceuticals, automotive components, consumer electronics, heavy machinery, and
equipment. (See Pages 7 and 8 of Attachment 4)
In response to a question from Councilmember Goforth, Mr. Butler clarified that some defense-
related suppliers and assemblers may be addressed under other federal provisions, and that the
FTZ program is generally intended to help non-defense companies remain competitive by
allowing certain manufacturing, assembly, and logistics activities to occur in the United States
rather than overseas. He noted that the program can help offset higher domestic production costs
and support U.S.-based jobs.
Ms. Molnar explained that Arizona allows an additional property tax benefit for activated FTZ sites
through a lower property assessment classification. She clarified that the property owner must
apply to the County Assessor for the reclassification after FTZ activation, and that the benefit
applies only to the portion of the property actively used for eligible FTZ activity. (See Page 9 of
Attachment 4)
Ms. O’Donnell emphasized the broader public benefits of FTZs, noting that while the primary
benefits apply to participating companies, communities also benefit through job creation, job
retention, economic growth, and private investment. She stated that the program is especially
valuable in Arizona, where fewer business incentive tools are available and FTZ activity may also
Study Session
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Page 9
support environmental and economic efficiencies by allowing goods to be processed closer to
market, reducing transportation costs and emissions. She pointed out that FTZ activities remain
subject to public interest review and oversight by local, state, and federal authorities. (See Page
10 of Attachment 4)
Ms. Molnar reviewed the roles of the entities involved in the FTZ process, including the Foreign-
Trade Zones Board, U.S. Customs and Border Protection, the COM as the grantee of FTZ No.
221, and private businesses serving as zone operators or users. She explained that the COM’s
Office of Economic Development administers the zone, facilitates the application process,
coordinates with Customs and Border Protection, and assists applicants throughout the process.
She stated that operators and users are responsible for daily FTZ operations, including
compliance with federal regulations, inventory control, security, reporting, and other ongoing
requirements. She added that the FTZ process can be lengthy and requires upfront costs, trained
staff, and ongoing resources, and that some businesses may use consultants or third parties to
help manage compliance and daily operations. (See Pages 11 and 12 of Attachment 4)
Ms. Molnar referenced a recent COM FTZ applicant, MGC Pure Chemicals America, Inc. She
confirmed that the increased tariff uncertainty has resulted in growing interest in the program. She
pointed out that MGC Pure Chemicals has operated in Mesa since 1995 and that the facility
serves as the company’s North American headquarters and primary manufacturing plant. She
explained that the company manufactures ultra-pure chemicals that are critical to the
semiconductor supply chain and is seeking FTZ designation to support continued growth, reduce
costs, streamline operations, and help mitigate tariffs. She commented that the site includes
existing facilities and planned future expansion, including additional building space. She
emphasized that the company’s continued investment supports the COM’s role in the
semiconductor supply chain and reflects the importance of foreign direct investment in the city.
(See Pages 13 and 14 of Attachment 4)
Ms. O’Donnell confirmed that MGC Pure Chemicals currently has 150 employees and plans to
add approximately 100 positions as part of its expansion. She stated that the additional positions
are expected to be high-wage, high-quality jobs.
Vice Mayor Somers thanked staff for the presentation.
3.
Acknowledge receipt of minutes of various boards and committees.
3-a.
Museum & Cultural Advisory Board meeting held on March 25, 2026.
It was moved by Councilmember Duff, seconded by Councilmember Taylor, receipt of the above
listed minutes be acknowledged.
Upon tabulation of votes, it showed:
AYES – Freeman–Somers–Adams–Duff–Goforth–Taylor
NAYS – None
ABSENT – Heredia
Vice Mayor Somers declared the motion carried unanimously by those present.
4.
Current events summary including meetings and conferences attended.
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Page 10
Mayor Freeman and Councilmembers highlighted the events, meetings, and conferences recently
attended.
5.
Scheduling of meetings.
City Manager Scott Butler stated that the schedule of meetings is as follows:
Monday, June 8, 2026, 3:00 p.m. – Economic Development Committee
Monday, June 8, 2026, 5:15 p.m. – Study Session
Monday, June 8, 2026, 5:45 p.m. – Regular Council meeting
6.
Adjournment.
Without objection, the Study Session adjourned at 9:43 a.m.
____________________________________
SCOTT SOMERS, VICE MAYOR
ATTEST:
_______________________________
HOLLY MOSELEY, CITY CLERK
I hereby certify that the foregoing minutes are a true and correct copy of the minutes of the Study Session
of the City Council of Mesa, Arizona, held on the 4th day of June 2026. I further certify that the meeting
was duly called and held and that a quorum was present.
_______________________________
HOLLY MOSELEY, CITY CLERK
sr
(Attachments – 4)
Enhancing Safety Through Modern
AI Camera Technology
June 4, 2026
Sheri Collins, Solid Waste Director
Study Session
June 4, 2026
Attachment 1
Page 1 of 4
What do we get?
2
• Advanced Safety Features
• Pedestrian Collision Warnings
• Blind Spot Detection
• Comprehensive Vehicle Coverage
• 5-7 cameras per vehicle depending on truck type
• High-definition video provides clear footage for incident investigations
• Provides drivers with real-time safety assistance while
enhancing protection for employees, residents, and property by
giving drivers real-time alerts.
Study Session
June 4, 2026
Attachment 1
Page 2 of 4
3
Current Brigade System
Proposed Samsara System
Requires physical access to vehicles for video
retrieval
Cloud-based access from authorized desktop or
mobile device
Hard drive removal and specialized laptop
required
Remote video retrieval and system management
Aging hardware (6+ years old)
Modern platform with continuous software
enhancements
Frequent hard drive failures and potential data
loss
Secure cloud storage with simple video
preservation
Limited troubleshooting capabilities
Remote diagnostics, calibration, and support
No AI safety features
Industry-leading AI safety and coaching tools
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Attachment 1
Page 3 of 4
Current Brigade System
Proposed Samsara System
4
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June 4, 2026
Attachment 1
Page 4 of 4
RPTA and VMR Funding
Agreements
(Item 5B and 5C)
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June 4, 2026
Attachment 2
Page 1 of 7
Timing
January agreements were for FY26 (July 1, 2025 – June 30, 2026)
June agreements are for FY27 (July 1, 2026 – June 30, 2027)
Historically have taken agreements to July or August Council meeting
◦Both RPTA and VMR agreements are taken at the same time
◦FY26 was delayed due to contract negotiations
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June 4, 2026
Attachment 2
Page 2 of 7
RPTA Funding Agreement Breakdown
Agreement funds $41.1M in transit service
◦20 bus routes operating in Mesa
◦15 fixed-routes
◦2 circulators
◦3 express routes
◦Paratransit and RideChoice programs for ADA eligible residents
◦Funding
◦Prop 400 and Prop 479 combined fund $38.8M
◦Mesa funds $5.5M
◦FY 27 represents a $2.4M increase over FY26
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Attachment 2
Page 3 of 7
VMR Funding Agreement Breakdown
VMR Funded Service is $21.1M
Estimated net cost of service $18.3M
Item not funded in Prop 479
◦$1M for Future Project Development
◦$300K for Systemwide Improvements
FY27 represents an increase of $3.2M over FY26
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Attachment 2
Page 4 of 7
Transit Ridership
0
500,000
1,000,000
1,500,000
2,000,000
2,500,000
3,000,000
3,500,000
4,000,000
4,500,000
18
19
20
21
22
23
24
25
26
Bus Ridership by FY
0
500,000
1,000,000
1,500,000
2,000,000
2,500,000
18
19
20
21
22
23
24
25
26
Light Rail Ridership by FY
FY 26 data is through April
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Attachment 2
Page 5 of 7
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June 4, 2026
Attachment 2
Page 6 of 7
Study Session
June 4, 2026
Attachment 2
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Downtown Restaurant and Food
Business Incubator
- Main Street Market -
City Council Study Session
June 4, 2026
Jeff McVay
Manager of Urban Transformation
Kimber Lanning
CEO, Local First Arizona
Study Session
June 4, 2026
Attachment 3
Page 1 of 16
2
MAIN STREET MARKET
Project Overview
• ARPA funded project
• City purchased 111 W. Main Street in
2022
• Create restaurant incubator/food hall
• Diverse public dining opportunities
• Most will be start-ups, learning to be
resilient and sustainable
• Grow into future Mesa businesses in
their own location
Study Session
June 4, 2026
Attachment 3
Page 2 of 16
MAIN STREET MARKET
3
Project Overview - Design
• 1st Floor
• Large shared kitchen
• Public modern food hall
• 7 restaurant bays
• Bar featuring local brands
• Small dining space incorporating
historic bank safe
• Basement
• Classrooms
• Production kitchen
• Food production
• Packing/shipping
• Photo studio
• Storage
Study Session
June 4, 2026
Attachment 3
Page 3 of 16
Project Overview - Construction
• Design/ Build Contractor Selection
• Received two responses to RFQ
• Awarded to 180 Degrees Design +
Build
• Contract includes:
• Final design of entire building
• Full build-out of 1st floor and exterior
improvements
• Warm shell for 2nd floor and
basement
• Mechanical, electric, and plumbing to
support future build-out
• Contract amount: $4.57M
4
MAIN STREET MARKET
Study Session
June 4, 2026
Attachment 3
Page 4 of 16
5
MAIN STREET MARKET
Study Session
June 4, 2026
Attachment 3
Page 5 of 16
6
MAIN STREET MARKET
Study Session
June 4, 2026
Attachment 3
Page 6 of 16
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MAIN STREET MARKET
Study Session
June 4, 2026
Attachment 3
Page 7 of 16
8
MAIN STREET MARKET
Study Session
June 4, 2026
Attachment 3
Page 8 of 16
9
MAIN STREET MARKET
Local First Arizona
•
Working in partnership with Mesa
for over 10 years
•
Launched incubator kitchen at El
Rancho del Sol in 2008 (now have 5)
•
Graduated 160 food businesses, with
a 78% success rate after 5 years
•
Largest local business coalition in the
country delivering business
assistance to more than 2,500
businesses annually
Study Session
June 4, 2026
Attachment 3
Page 9 of 16
MAIN STREET MARKET
10
Study Session
June 4, 2026
Attachment 3
Page 10 of 16
11
MAIN STREET MARKET
• Local First's Business Accelerators teach
strong business acumen and financial
literacy
•
Fuerza Local
•
We Rise
•
Loan Readiness Boot Camp
•
Good Food Boot Camp
•
Ag Business Boot Camp
• Farm to Table, supporting local farms
• Workforce training for hospitality
• Cottage Industry brings people to
legitimacy
Study Session
June 4, 2026
Attachment 3
Page 11 of 16
Lease Agreement - Terms
• Initial Term: 10-years
• Three, five-year renewals
• $10,000/year rent
• Rent escalation of $5,000 per year,
at each renewal.
• City holds rent income to offset
landlord costs
• LFA responsible for typical
operations and maintenance
• City responsible for major systems
and structure
12
MAIN STREET MARKET
Study Session
June 4, 2026
Attachment 3
Page 12 of 16
Lease Agreement – LFA Obligations
• Provision of all incubator programming
• Minimum of five annual Program
Participants (first floor)
• Minimum of 80 annual Program
Participants (upon build-out of
basement)
• Min. 4 Program Classes quarterly with
20+ participants
• Mesa resident/business preference
• LFA to reinvest any profit back into
program
• Food Court open minimum 6 days/week (8
hours/day)
• Quarterly reporting to City on program
metrics
13
MAIN STREET MARKET
Study Session
June 4, 2026
Attachment 3
Page 13 of 16
Lease Agreement – City Obligations
• Full design of improvements to
support restaurant and food business
incubator programming
• Full build-out of 1st floor and exterior
improvements
• Warm shell for basement
• Mechanical, electric, and plumbing to
support full build-out of first and
second floor
14
MAIN STREET MARKET
Study Session
June 4, 2026
Attachment 3
Page 14 of 16
Next Steps
• City Council action on Lease
Agreement: June 8, 2026
• Complete construction: October 2026
• Commence Incubator programming:
January 2027
15
MAIN STREET MARKET
Study Session
June 4, 2026
Attachment 3
Page 15 of 16
DISCUSSION AND QUESTIONS
MAIN STREET MARKET
Study Session
June 4, 2026
Attachment 3
Page 16 of 16
U.S. Foreign-Trade Zone Program
Jaye O’Donnell, Economic Development Director
Chris Molnar, Economic Development Administrator
Study Session
June 4, 2026
Attachment 4
Page 1 of 13
FTZ Program Key Provisions
• Federally authorized
• Encourages U.S. activity
and competitiveness
• Allows businesses to pay
reduced, delayed or no
customs duties on
foreign merchandise
• Secure areas under
supervision of CBP
• Considered outside the
customs territory of U.S.
for purposes of duty
payment
• Administered by the
Foreign-Trade Zones
Board (FTZB) comprised
of the Commerce and
Treasury departments
Study Session
June 4, 2026
Attachment 4
Page 2 of 13
FTZ No. 221
April 1997
Board Order 0883:
Grant of Authority
Zone Established
Williams
Gateway
Airport
Service Area
Study Session
June 4, 2026
Attachment 4
Page 3 of 13
FTZ No. 221
Phoenix-Mesa
Gateway
Airport
January 2008
Board Order 1538:
Zone Reorganization
Service Area
Study Session
June 4, 2026
Attachment 4
Page 4 of 13
FTZ No. 221
Mesa Gateway
Airport
July 2022
Zone Reorganization/
Expansion under
Alternative Site
Framework
Service Area
Study Session
June 4, 2026
Attachment 4
Page 5 of 13
Eligible Activities
Merchandise may be assembled, exhibited, cleaned,
manipulated, manufactured, mixed, processed, relabeled,
repackaged, repaired, salvaged, sampled, stored, tested,
displayed and destroyed.
Production activity – any operation that changes the nature or
status of goods before formally entered into U.S. Commerce
(must be specifically authorized by the FTZ Board)
Retail trade is prohibited.
Study Session
June 4, 2026
Attachment 4
Page 6 of 13
User Benefits
FTZs are especially valuable for companies that:
• Export finished goods from the FTZ
• Assemble products using imported components
• Manage high-volume international trade
• Are building or expanding U.S. manufacturing and/or distribution sites,
or looking to optimize their supply chain footprint
• Efficiency
• Financial Flexibility
• Global Competitiveness
Study Session
June 4, 2026
Attachment 4
Page 7 of 13
User Benefits
• In 1991, the Arizona State legislature approved a lower assessment
ratio for activated FTZ or subzone sites.
• Most sites (commercial/industrial uses, utility companies, shopping
centers) are designated as Class 1 property
• FTZ activated sites eligible for property tax reclassification to
Class 6
• Noncommercial historic property, FTZ properties, Military Reuse
Zones, renewable energy manufacturing
Study Session
June 4, 2026
Attachment 4
Page 8 of 13
Public Benefits
• Job Creation and Retention
• Economic Growth and Investment
• Public Infrastructure and Community Development
• Enhancing U.S. Competitiveness
• Supporting Supply Chain Resilience
• Environmental and Economic Efficiency
• Government Oversight and Public Interest
Study Session
June 4, 2026
Attachment 4
Page 9 of 13
Roles and Responsibilities
• Foreign-Trade Zones Board (FTZB)
• U.S. Customs and Border Protection (CBP)
• Zone Grantee (City of Mesa)
• Zone Operator/User
• Others
Study Session
June 4, 2026
Attachment 4
Page 10 of 13
FTZ Application Process
• Research / FTZ Consultant Selection / Cost-Benefit Analysis
• Request for City of Mesa Letter of Support
• Pre-Application Meeting
• Application Preparation
• OED Application Review and Submittal
• FTZ Board Staff Review / CBP Concurrence
• Operator Agreement
• Activation**
**Production Authority – separate approval required**
• Reporting
Study Session
June 4, 2026
Attachment 4
Page 11 of 13
MGC Pure Chemicals America, Inc.
• MGC Pure Chemicals America, Inc. (MPCA)
• 26.07-acre site, east of Signal Butte on Pecos Rd
• Expanding Mesa headquarters facility, primary plant for
North American operations
• Key supplier to semiconductor companies, primarily in
the U.S.
Study Session
June 4, 2026
Attachment 4
Page 12 of 13
Foreign Trade Zone No. 221
Study Session
June 4, 2026
Attachment 4
Page 13 of 13