Council Report

City of Mesa — City Council (2026-10-26)

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City Council Report
Date: October 26, 2026
To: City Council
Through: Scott Butler, City Manager
Marc Heirshberg, Assistant City Manager
From: Nana Appiah, Development Services Director
Ashley Scott, Management Assistant II
Subject: DA26-02395 MGC Pure Chemicals Pecos Rd Development Agreement
Council District 6
Purpose and Recommendation
The purpose of this report is to discuss and consider approving a Resolution to
authorize the City Manager to enter into a Development Agreement (“DA”) with MGC
Pure Chemicals America, Inc., an Arizona corporation (“Owner”). The Owner’s
property consists of twenty-six (26) acres located at the northwest corner of East
Pecos Road and South Mountain Road. The proposed Development Agreement
temporarily defers the Owner’s obligations to design, install, and construct certain
required roadway improvements, including curbs, gutters, sidewalks, and streetlights,
along East Pecos Road associated with the expansion of the Owner’s existing
manufacturing facility.
Staff recommends that the City Council approve the Development Agreement.
Background
MGC Pure Chemicals America, Inc. is proposing an expansion of its existing
manufacturing facility on the Property. In connection with the Project, Mesa City
Code Title 9, Chapter 8 requires the Owner to design and construct certain public off-
site improvements in accordance with City standards. A proposed rail spur is also
planned to serve the Property and connect to the proposed Union Pacific Railroad
Company track. The rail spur would cross East Pecos Road within the same area
where the Owner is required to construct the Pecos Road improvements. Because
the rail spur and roadway improvements affect the same area, coordination of their
design and construction is necessary.
Discussion
The Development Agreement temporarily defers the Owner’s obligation to design,
install, and construct the required Pecos Road improvements so that the roadway
improvements can be coordinated with the proposed Rail Spur. The deferral applies
only to the Pecos Road improvements; all other required public infrastructure
improvements (e.g., water, wastewater, and drainage improvements) remain the

responsibility of the Owner and are not deferred or waived. The key elements of the
Development Agreement include:
 Deferral Period: The deferral will terminate upon the earliest of issuance of the
first City permit required for construction of the Rail Spur, five years after the
Effective Date of the Development Agreement, or written notice from the City
Manager terminating the deferral after consultation with the Transportation
Department Director.
 Completion of Improvements: Once the deferral period ends, the Owner must
obtain the necessary permit and complete the Pecos Road improvements within
one year. If the deferral ends because the first Rail Spur permit is issued, the
roadway improvements must be constructed simultaneously with the Rail Spur.
 Lieu Payment: The City Manager may require an in-lieu payment instead of
construction of the improvements on Pecos Road in accordance with the
Development Agreement.
The deferral allows the Rail Spur and Pecos Road improvements to be coordinated
before construction, reducing the potential for construction conflicts or future
reconstruction while preserving the Owner’s obligation to ultimately complete the
required roadway improvements.
Alternatives
The following alternatives are presented for consideration:
Not to Approve the Resolution:
If Council chooses not to approve the Resolution, the City Manager will not be
authorized to enter into the Development Agreement, and the temporary deferral
would not take effect. The Owner would remain responsible for completing the
Pecos Road improvements under Mesa City Code. Because the proposed Rail Spur
will cross the same area, constructing the roadway improvements before the Rail
Spur is finalized could create construction conflicts and may require some of the
improvements to be modified or reconstructed later.
Staff recommends the City Council approve the Resolution authorizing the Development
Agreement so that construction of the Pecos Road improvements and the Rail Spur are
coordinated.
Fiscal Impact
The Development Agreement does not require any additional investment or fiscal impact
from the City.
Coordinated With
The Development Agreement was coordinated with the Development Services
Department, Department of Transportation, and the City Attorney’s Office.