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Downtown Restaurant and Food Business Incubator - Main Street Market - City Council Study Session June 4, 2026 Jeff McVay Manager of Urban Transformation Kimber Lanning CEO, Local First Arizona 2 MAIN STREET MARKET Project Overview • ARPA funded project • City purchased 111 W. Main Street in 2022 • Create restaurant incubator/food hall • Diverse public dining opportunities • Most will be start-ups, learning to be resilient and sustainable • Grow into future Mesa businesses in their own location MAIN STREET MARKET 3 Project Overview - Design • 1st Floor • Large shared kitchen • Public modern food hall • 7 restaurant bays • Bar featuring local brands • Small dining space incorporating historic bank safe • Basement • Classrooms • Production kitchen • Food production • Packing/shipping • Photo studio • Storage Project Overview - Construction • Design/ Build Contractor Selection • Received two responses to RFQ • Awarded to 180 Degrees Design + Build • Contract includes: • Final design of entire building • Full build-out of 1st floor and exterior improvements • Warm shell for 2nd floor and basement • Mechanical, electric, and plumbing to support future build-out • Contract amount: $4.57M 4 MAIN STREET MARKET 5 MAIN STREET MARKET 6 MAIN STREET MARKET 7 MAIN STREET MARKET 8 MAIN STREET MARKET 9 MAIN STREET MARKET Local First Arizona • Working in partnership with Mesa for over 10 years • Launched incubator kitchen at El Rancho del Sol in 2008 (now have 5) • Graduated 160 food businesses, with a 78% success rate after 5 years • Largest local business coalition in the country delivering business assistance to more than 2,500 businesses annually MAIN STREET MARKET 10 11 MAIN STREET MARKET • Local First's Business Accelerators teach strong business acumen and financial literacy • Fuerza Local • We Rise • Loan Readiness Boot Camp • Good Food Boot Camp • Ag Business Boot Camp • Farm to Table, supporting local farms • Workforce training for hospitality • Cottage Industry brings people to legitimacy Lease Agreement - Terms • Initial Term: 10-years • Three, five-year renewals • $10,000/year rent • Rent escalation of $5,000 per year, at each renewal. • City holds rent income to offset landlord costs • LFA responsible for typical operations and maintenance • City responsible for major systems and structure 12 MAIN STREET MARKET Lease Agreement – LFA Obligations • Provision of all incubator programming • Minimum of five annual Program Participants (first floor) • Minimum of 80 annual Program Participants (upon build-out of basement) • Min. 4 Program Classes quarterly with 20+ participants • Mesa resident/business preference • LFA to reinvest any profit back into program • Food Court open minimum 6 days/week (8 hours/day) • Quarterly reporting to City on program metrics 13 MAIN STREET MARKET Lease Agreement – City Obligations • Full design of improvements to support restaurant and food business incubator programming • Full build-out of 1st floor and exterior improvements • Warm shell for basement • Mechanical, electric, and plumbing to support full build-out of first and second floor 14 MAIN STREET MARKET Next Steps • City Council action on Lease Agreement: June 8, 2026 • Complete construction: October 2026 • Commence Incubator programming: January 2027 15 MAIN STREET MARKET DISCUSSION AND QUESTIONS MAIN STREET MARKET