Council Report

City Council Report 
 
Date:  
April 20, 2026 
To: 
 
City Council 
Through: 
Scott Butler, City Manager 
 
From:  
Jeffrey McVay, Manager of Downtown Transformation 
 
 
 
Subject: 
Purchase of 1 W. Main Street  
Council District: 4 
 
Purpose and Recommendation 
 
The purpose of this report is to provide information to the City Council regarding the 
proposed purchase of real property located at 1 W. Main Street in Downtown Mesa. 
The acquisition of this property represents a strategic opportunity for the City to 
secure a high-visibility site in the downtown core that supports ongoing 
redevelopment efforts, enhances economic vitality, and advances the City’s long-
term vision for Main Street. 
 
It is recommended that the City Council approve the purchase of 1 W. Main Street, 
consisting of approximately 19,376 square feet of land and an existing approximately 
6,500 square foot building, for a total purchase price of $2,500,000, and authorize the 
City Manager to execute the proposed Purchase Agreement and Sale Agreement, 
Lease Agreement, and all related documents necessary to complete the transaction. 
 
Background 
 
The property located at 1 W. Main Street (Property) is currently owned by 1 WM, LLC 
(Seller) and is improved with an existing commercial building in good condition that is 
occupied as a law office. The property is located on the southwest corner of the key 
downtown intersection of Center and Main Streets, adjacent to important civic, 
cultural, and entertainment destinations, including the Mesa Arts Center. 
 
With an understanding of the City’s vision for this strategic Property, in late 2025 the 
Seller approached the City with the opportunity to acquire the Property prior to 
commercially listing for sale at $2,650,000. As a basis for negotiations, and in 
collaboration with the Seller, the City commissioned Sell and Associates to prepare a 
fee-simple, as-is appraisal of the Property. Completed in December 2025, the 
appraised value of the property is $2,500,000. If acquired, the City will pursue the 
near- and long-term redevelopment opportunities to activate the property, support 
downtown vibrancy, and align with the City’s vision for downtown through an RFP for 
a development partner to adaptively re-use the Property in the near-term and 
redevelop the Property in the long-term. 
Discussion 
 
Through negotiation, and conditioned upon City Council approval, the Seller has

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agreed to sell the property to the City for $2,500,000, contingent upon the City 
entering into an 18-month Lease Agreement back to the Seller. As material 
consideration for the Seller’s acceptance of the City’s purchase offer, the City and 
Seller will enter into a Lease Agreement with the Seller for a period of up to eighteen 
(18) months at a nominal rental rate. The proposed lease is structured with the tenant 
responsible for all maintenance, utilities, operating costs, and taxes associated with 
the Property. This lease structure ensures the property remains occupied and 
maintained during the City’s due diligence and planning phase for future use, while 
eliminating any financial obligations of the City, which are typical for commercial 
landlords. The lease also provides the City access to the Property during the lease 
term for evaluation and future redevelopment planning. 
 
The acquisition of this Property presents both near- and long-term opportunities. In 
the near-term, the property provides an opportunity for increased economic activity of 
a key downtown Property adjacent to the Mesa Arts Center through adaptive reuse of 
the existing structure into active restaurant/retail use. In the long-term, the Property 
provides a redevelopment opportunity in alignment with the City’s vision for 
downtown Mesa. 
 
Acquisition of the Property provides the City with strategic control of the near-term 
activation of a key downtown site, while ensuring future redevelopment aligns with 
the City’s vision for downtown while supporting economic vitality, increased visitation, 
and a balanced mix of uses in the downtown core 
 
Alternatives 
 
The Council may choose not to authorize the purchase of real property located at 1 
W. Main Street. 
 
Fiscal Impact 
 
The purchase of the Property will have a one-time cost of $2,500,000.  
 
Coordinated With 
 
The Real Estate Services Office, City Attorney’s Office, and City Manager’s Office.