Resolution

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RESOLUTION NO. 12567 
 
A RESOLUTION OF THE COUNCIL OF THE CITY OF MESA, MARICOPA 
COUNTY, ARIZONA, AUTHORIZING THE CITY MANAGER TO ENTER 
INTO A DEVELOPMENT AGREEMENT AND GOVERNMENT PROPERTY 
IMPROVEMENTS LEASE AGREEMENT WITH PRIDE VENTURES LLC II, 
TO FACILITATE THE DEVELOPMENT AND CONSTRUCTION OF A 
MIXED-USE COMMERCIAL AND RESIDENTIAL PROJECT AND OTHER 
PUBLIC IMPROVEMENTS ON THE PROPERTY GENERALLY LOCATED IN 
DOWNTOWN MESA AT THE NORTHEAST CORNER OF WEST MAIN 
STREET AND NORTH DOBSON ROAD, AND EASEMENT AGREEMENTS 
TO ALLOW FOR THE PUBLIC’S USE OF A SIDEWALK AND DRIVE AISLE 
IN THE PROJECT.  
 
WHEREAS, Pride Ventures LLC II (“Developer”) has fee ownership of approximately 
4.05 acres of certain real property (Assessor Parcel Number: 135-48-042) located at 1830 West 
Main Street within the city limits of the City of Mesa (“City”) which is legally described in the 
attached Exhibit A (“Property”).  
 
WHEREAS, Developer intends to facilitate the development of the Property into a high-
quality, mixed-use development consisting of one multi-story building with ground floor 
commercial space, market-rate residential units, pedestrian and vehicular thoroughfares, and other 
public benefit improvements (the “Project”). 
 
WHEREAS, the Property is located in the West Redevelopment Area within City’s single 
Central Business District initially adopted by City Council in 1999 and expanded to include the 
Property on August 21, 2017, and was renewed by City Council on April 6, 2020, at which time 
the Council found a substantial number of blight factors still existed within the Central Business 
District by Resolution No. 11471.  
 
WHEREAS, the City’s Central Business District, including the West Redevelopment Area, 
has numerous vacant, undeveloped and blighted properties and at least two blight factors exist on 
each parcel within the Property (as determined by the blight assessment study conducted and 
presented to the City Council at the time of the renewal of the City’s Central Business District): 
deterioration of site or other improvements, and the existence of conditions that endanger life or 
property by fire and other causes. 
 
WHEREAS, Arizona Revised Statutes (“A.R.S.”) § 9-500.05 authorizes the City to enter 
into a development agreement with any person or entity having an interest in real property in the 
City of Mesa providing for the development of such property and certain development rights 
thereon.  
 
WHEREAS, the City Council finds it is in the best interest of the City and the City’s vision 
for the redevelopment and revitalization of its West Redevelopment Area for the Project to be 
constructed on the Property and for the City to enter into a Development Agreement for the Project 
(“Development Agreement”), the terms of which would include the construction of certain public

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benefit improvements, with certain dedicated easement areas to be maintained perpetually by the 
Property owner,  consisting of two (2) thoroughfares through the Project with motor vehicle access, 
pedestrian pathways, and improved landscaping (“Sidewalk and Drive Aisle”).  
 
WHEREAS, upon completion of the Project, it is the desire and intention of Developer and 
the City that the owner of the Property transfers the Property and all the improvements constructed 
thereon to the City, and thereafter to lease the same from the City as a Government Property 
Improvements Lease pursuant to A.R.S. §§ 42-6201 et seq. (the “Lease”) on the terms and 
conditions as set forth in the Lease. 
 
WHEREAS, the governing bodies of Mesa Community College, Mesa Public Schools, and 
the East Valley Institute of Technology (collectively, the “School Districts”) and Maricopa County 
were notified and received all documentation required by A.R.S. §§ 42-6201 et seq. 
 
WHEREAS, the City Council hereby determines, as required by A.R.S. § 42-6209(C)(2), 
that, within the term of the Lease, the economic and fiscal benefit to the State of Arizona, Maricopa 
County, and the City will exceed the benefits received by the prime lessee as a result of the Lease 
on the basis of an estimate of those benefits prepared by an independent third party in a manner 
and method acceptable to the City Council, and that the City has provided that analysis to Maricopa 
County and the School Districts.  
 
WHEREAS, the City Council further finds that the Property is located in the West 
Redevelopment Area within the City’s single Central Business District, and the improvements that 
will be constructed on the Property for the Project will result in an increase in property value of at 
least one hundred percent; therefore, subject to compliance with, and limitations of, A.R.S. §§ 42-
6201 et seq., the Development Agreement and the Lease, the Property and improvements will be 
eligible for the tax abatement under A.R.S. § 42-6209.          
 
WHEREAS, in compliance with A.R.S. § 42-6209(G), the term of the Lease will not 
exceed eight years, and upon the expiration (or earlier termination) of the Lease, the City will 
reconvey the Property and improvements back to the owner. 
 
 
WHEREAS, as a condition precedent to the City entering into the Lease and as an element 
of the consideration for the Development Agreement, the owner of the Property will give to City, 
at no cost to City, perpetual easements over the Sidewalk and Drive Aisle in the forms attached to 
the Development Agreement ( the “Perpetual Easements”), that will ensure the public benefits 
from the use of the space by providing pedestrian pathways and vehicular access the public the 
City-owned transit center adjacent to the Property.   
 
WHEREAS, the City Council finds that the Project will enhance the economic welfare of 
the inhabitants of the City of Mesa by, but not limited to, (i) providing for planned and orderly 
development of the Property consistent with the City’s General Plan, Zoning Ordinance and West 
Main Street Area Plan; (ii) increasing tax revenues to City arising from or relating to the 
improvements to be constructed on the Property; (iii) increasing utility revenues to City; (iv) 
creating new jobs and otherwise enhancing the economic welfare of the residents of City; (v) 
providing the Sidewalk and Drive Aisle for use by the public as outlined in the Perpetual

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Easements; (vi) providing a high-quality, new multi-residential area in the City’s downtown; (vii) 
providing a dynamic, new commercial development in the City’s downtown to benefit City 
residents; (viii) reducing the blight on the Property; (ix) the collection of permit fees and 
transaction privilege tax in the construction of the Project; and (x) otherwise advancing the 
redevelopment goals of the City. 
 
WHEREAS, the City Council hereby determines and finds that the Project will assist in 
the creation of jobs and will otherwise improve and enhance the economic welfare of the 
inhabitants of the City of Mesa in accordance with A.R.S. § 9-500.11 (Version 2) entitled 
“Expenditures for economic development; requirements; definitions”.  
 
WHEREAS, the City Council hereby determines it is appropriate to enter into the 
Development Agreement, the Lease, the Perpetual Easement, and other agreements and 
amendments as contemplated in those documents.   
 
NOW THEREFORE BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF 
MESA, MARICOPA COUNTY, ARIZONA, AS FOLLOWS: 
 
Section 1:   
The City Council approves the Development Agreement, Lease, and 
Perpetual Easements for the development and construction of the Project, authorizes the other 
agreements and amendments as contemplated in the Development Agreement, Lease, and 
Perpetual Easement, and authorizes the future actions and execution of documents and agreements 
necessary to carry out the provisions of all these agreements (all the foregoing, collectively, the 
“Project Documents”).   
 
Section 2:  
The City Manager, or his designee, is authorized to execute the Project 
Documents and may agree to, and enter into, amendments and modifications to the Project 
Documents as necessary to carry out the intent of the Project Documents or that are necessary to 
facilitate the development of the Project, and that do not materially alter the terms of the Project 
Documents.   
 
 
Section 3:   
The City Clerk is authorized and directed to attest to the signature of the 
City Manager, or his designee, on all such documents. 
 
 
 
PASSED AND ADOPTED by the Council of the City of Mesa, Maricopa County, Arizona 
this 17th day of August, 2026. 
 
 
 
 
 
 
 
 
APPROVED: 
 
________________________________ 
 
 
 
 
 
 
Mayor 
 
ATTEST: 
 
____________________________ 
City Clerk