Council Report

City Council
Date: October 26, 2026
To: City Council
Through: Scott Butler, City Manager
From: Jeffrey McVay, Manager of Urban Transformation
Subject: Mesa Town Center Improvement District No. 228
Resolution approving the Continuation of the Mesa Town
Center Improvement District
District 4
Purpose and Recommendation
The purpose of this report is to provide information for the City Council to review in
considering the approval of a five (5) year continuation of the Mesa Town Center
Improvement District No. 228 (District 4).
Staff recommends that City Council approve the Resolution continuing District for an
additional five (5) years.
Background
On October 7, 1985, the City Council passed Resolution No. 5617 establishing the
District to provide enhanced municipal services for the Town Center (see Exhibit “A”
Location Map). Since then, the City Council has held multiple hearings on the
continuation of the District. The last hearing was held on December 8, 2021. At that
time, the City Council approved continuation of the District for an additional five (5)
years. The 2021 approval allowed the District to annually assess property owners
through the Fiscal Year (FY) 25/26.
The District continuation approved in 2021 is set to expire. In order for the District to be
reauthorized, allowing the continued assessment of property owners through FY 30/31,
the City Council must pass a Resolution approving a five-year continuation of the
District. Property owners within the District may file a protest against the continuation of
the District. As stipulated within Section 6 of Resolution No. 5617, “if a majority of those
entitled to protest in all three of the following categories, protest against the continuation
of the district, then the district will be discontinued. The categories are: (A) Total
assessed square footage; (B) Total dollars raised through the assessment in the fifth
assessment year and every subsequent fifth assessment year; and (C) Total number of
assessed property owners favoring discontinuance.” Also, the City Council may decide
to terminate or modify the District on the City Council's own initiative. At the time of this
report, no official protest letters from property owners have been received.
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Discussion
On August 31, 2026 City Council set October 26, 2026 as the public hearing date for
continuation of the District. On September 1, 2026, a Notice of Hearing on Continuation
of the District was mailed to all Town Center property owners, as listed on the Maricopa
County tax rolls that are currently being assessed. The notice provided information to
the property owners on their rights to protest and the procedures they need to follow to
do so (see Exhibit "B" for the Notice of Hearing). The Resolution setting the hearing
date was also published in the Arizona Republic for five (5) days (October 14, 2026
through October 17, 2026 and Wednesday, October 21, 2026).
Approval of the Resolution will allow the District to continue for an additional five (5)
years. This continuation does not include any changes to the SID 228 assessments,
assessment zones, or formulas.
Alternatives
City Council could choose to terminate the District. Termination of the District would
mean that no future Town Center assessments could be levied and that the enhanced
municipal services being provided by the Downtown Mesa Association (DMA) would be
terminated or funded by another source rather than assessments. This alternative is not
recommended as no alternate funding sources have been identified for the District.
Fiscal Impact
For fiscal year 2026/2027, the District assessed 517 parcels for a total of $350,705.08.
These assessment funds are provided to the City from the County and the City
functions as a pass-through of the funds to DMA. In addition, the City is responsible for
providing staff time to review and set procedures, record protest(s) received, and
provide for the mailing of notices for the DMA.
Per A.R.S. § 48-582 and Resolution No. 5617, the City is exempt from paying annual
District assessments on City-owned lots. However, the City does provide an annual
voluntary assessment (approximately $230,578 for FY 26/27) to cover basic services in
downtown, such as litter and graffiti removal, pigeon and weed control, and sidewalk
power washing. Through a Professional Services Contract between the City and DMA,
the City’s voluntary assessment funding, combined with the property owner assessment
and approximately $33,000 in rent savings, DMA provides enhanced services, including
the promotion of Downtown Mesa as a destination, dozens of events management and
sponsorships, communication and collaborative problem solving/planning, serving in a
role of real estate liaison/broker for downtown properties, being the central point of
contact and property owner/merchant advocacy, ensuring board and committee
management, and managing the downtown banner and sculpture program.
The City also contracts with DMA to provide for all parking management and
enforcement in downtown, which is approximately $400,605 annually. The City
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estimates that $400,000 in parking revenue will be collected by DMA and received by
the City.
Concurrence
The Downtown Mesa Association concurs with this recommendation.
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EXHIBIT A
LOCATION MAP
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EXHIBIT B
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NOTICE OF HEARING
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NOTICE OF HEARING
ON THE CONTINUATION OF THE
MESA TOWN CENTER
IMPROVEMENT DISTRICT
Dear Mesa Town Center Property Owners:
On October 7th, 1985, the Mesa Town Center Improvement District was established by the Mesa City
Council to provide enhanced municipal services for the Mesa Town Center. The enhanced municipal
services are above and beyond normal City services and have been provided by the Downtown Mesa
Association, a non-profit organization that promotes, markets, and manages the mile square District on
behalf of Town Center owners.
Since October 7th, 1985, the City Council has held several hearings on the continuation of this District. The
last hearing was held on December 8th, 2021. At that time, the Council extended the District for an
additional five (5) years. It is now time to consider whether to continue or terminate this District.
You are hereby notified that the Mesa City Council will conduct a Public Hearing on the continuance of
this District on October 26th, 2026. The hearing will be held at City Hall (upper level) located at 20 East
Main Street, Mesa, at 5:45 p.m.
If you wish to object to the continuation of this District, you must submit a written objection to the
continuation of the District to the Mesa City Clerk. Your objection must include the following information:
Owner's Name, Property Address, County Assessor Parcel Number of each parcel that is objecting and the
basis for your objection. ALL OBJECTION LETTERS MUST BE SIGNED BY THE PROPERTY
OWNER AND NOTARIZED, AND MUST BE RECEIVED BY THE CITY CLERK'S OFFICE NO
LATER THAN OCTOBER 26TH, 2026 at 12:00 PM. Objection letters should be mailed to: Mesa City
Clerk, P.O. Box 1466, Mesa, AZ, 85211-1466.
In accordance with City of Mesa Resolution No. 5617, if a majority of the Property Owners (not tenants)
entitled to protest in all three of the following categories, then the District will be discontinued. The three
categories are as follows: 1) Total assessed square footage; 2) Total assessment dollars raised in the most
recent assessment year; 3) Total number of assessed property owners favoring discontinuance. Also, the
City Council, on the Council’s own initiative, may decide to terminate or modify the District.
If you are in need of any additional information regarding this notice, please contact Jimmy Cerracchio,
Downtown Mesa Association, 100 N. Center Street, Mesa, AZ 85201, Phone: (480) 890-2613, email:
jimmy@downtownmesa.com or Jeff McVay, City of Mesa, Office of Urban Transformation, P.O. Box
1466, Mesa, Arizona, 85211-1466, Phone: (480) 644-5379, email: Jeff.McVay@mesaaz.gov
Jeffrey McVay
Downtown Transformation Manager
Mailed: September 01, 2026
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