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Ovio City Council Study Session July 16, 2026 Jeff McVay Manager of Urban Transformation Jeff Robbins Senior Economic Development Project Manager Development Agreement OVIO - SITE IN CONTEXT DOBSON RD. MAIN ST. SYCAMORE 2 OVIO - PROJECT OVERVIEW Show all of these information graphically with icons and minimal data. Explore infographics options via Claude If graphics do not work, keep text here, use graphics on next. • Redevelopment of 4.05± acres at 1830 West Main Street, near Dobson Road • Urban, market-rate, mixed-use development • One building, five stories • Approximately 285,890 SF • 191 market-rate apartments • Approximately 5,700 SF ground-floor commercial 3 ESTIMATED ECONOMIC AND FISCAL IMPACT Total direct $920,310 New tax revenue to the City $500,000 Contribution to City’s redevelopment priorities Minimum construction sales tax Net rent to City over 8 years New residential City utility users $520,000 $80,000 191 Permanent Mesa Jobs City, county & state tax revenue $83 M $5.2 M 28 Jobs $136 M Total Impact 4 $53 M Total indirect Source: Applied Economics, Economic and Revenue Impacts of OVIO at Sycamore Station City of Mesa AZ, June 2026 AGREEMENTS • Development Agreement • Government Property Lease Excise Tax Agreement (GPLET) • 8-year tax abatement • Independent analysis confirms statutory eligibility (A.R.S. § 42-6209): • Within the City’s single Central Business District and Redevelopment Area • Increases the value of the property by greater than 100% • Generates greater revenues than the property taxes abated • Sidewalk Easement • Vehicular Ingress and Egress Easement 5 DEVELOPER OBLIGATIONS • Design and Construction of minimum private improvements by July 1, 2027 • Design and Construction of public improvements by July 1, 2027 • Enhanced landscaping • Bus transit center improvements • Perpetual maintenance of improvements • Main Street trees • Ironwood Drive improvements • Dedicate sidewalk and vehicular easement • Use City water, sewer, solid waste, and natural gas utilities 6 DEVELOPER OBLIGATIONS • One-time in-lieu payments to school districts: • $74,854 — Mesa Public Schools • $12,762 — Maricopa Community College District • $589 — East Valley Institute of Technology • $500,000 — One-time payment to City for redevelopment priorities • Potential funding source for restaurant incubator • Transit Center improvements • Demolition of a restroom facility • Sidewalk, paver and curb replacement, irrigation, and landscaping • TPSS Improvements (Traction Power Substation serving Light Rail) • Pedestrian crossing and ramp modifications 7 CITY OBLIGATIONS CITY OBLIGATIONS Upon project completion, Mesa commits to four key obligations under the DA and GPLET terms. Provide eight-year tax abatement Approval of a GPLET lease agreement upon developer completing all public and private improvements Accept Title to Public Improvements Accept title to all dedicated public improvements made as part of the project Provide Municipal Utility Services Provide water, sewer, solid waste, and natural gas services to the project Provide Customized Plan Review Provide a customized review schedule for Ironwood Drive and public improvements 8 DISCUSSION AND QUESTIONS