Council Report

City of Mesa — City Council (2026-11-02)

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City Council Report
Date: November 2, 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: DA26-02412 The Grove at Lehi Development Agreement
Council District 5
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 The
Grove at Lehi Community Association, an Arizona nonprofit corporation
(“Developer”). The Development Agreement addresses the installation and ongoing
maintenance of landscaping within the Arizona Department of Transportation
(“ADOT”) right-of-way adjacent to The Grove at Lehi residential subdivision, north of
McDowell Road and east of the Loop 202 Red Mountain Freeway.
Staff recommends that the City Council approve the Development Agreement.
Background
The Developer owns the subdivision’s common areas, which adjoin ADOT property
along Loop 202. To enhance the appearance of the area, the Developer proposes to
install trees and the irrigation infrastructure within the adjacent ADOT right-of-way.
ADOT allows governmental entities to obtain encroachment permits for the
improvements on its property. ADOT issued an encroachment permit to the City on
September 10, 2026, for the proposed landscaping. The Developer and the City now
propose a Development Agreement to establish responsibility for the permitted
improvements.
Discussion
Under the Development Agreement, the Developer will undertake the landscaping
work and assume the City’s obligations under the ADOT encroachment permit. The
proposed improvements include approximately 28 mesquite and live oak trees and
irrigation infrastructure along the Loop 202 frontage. The Developer will be
responsible for installing, maintaining, repairing, and replacing the landscaping at its
sole cost and expense, in accordance with applicable laws and ADOT permit
requirements. Any material changes to the improvements will require prior written
approval from the City.

The agreement has an initial 20-year term and will automatically renew for an
additional 20 years unless terminated earlier under the terms of the agreement.
Upon termination, the Developer will be responsible for removing the improvements
and restoring the ADOT property at its expense if required by ADOT, unless the City
elects to maintain the improvements as provided in the agreement. The agreement
also requires the Developer to indemnify the City for specified third-party claims
arising from the improvements or permit obligations. If the Developer fails to maintain
the landscaping, the City may perform the work and recover its direct costs from the
Developer. The Developer’s obligations are binding on successors and assigns as
covenants running with the land.
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. The City would not have the
proposed contractual commitments from the Developer assigning responsibility for
installation, maintenance, costs, and performance of the City’s obligations under the
ADOT encroachment permit.
Staff recommends the City Council approve the Resolution authorizing the Development
Agreement for the Developer to establish responsibility for the landscape improvements
within the ADOT right-of-way.
Fiscal Impact
The Development Agreement does not require any additional investment. The
Developer is responsible for the costs of installing and maintaining the landscape
improvements. The agreement gives the City the right, but not the obligation, to perform
maintenance if the Developer fails to do so and seek reimbursement of its direct costs.
Coordinated With
The Development Agreement was coordinated with the Development Services
Department and the Department of Transportation.