March 12, 2026 Community and Cultural Development Committee
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COMMUNITY & CULTURAL
DEVELOPMENT COMMITTEE MINUTES
March 12, 2026
The Community and Cultural Development Committee of the City of Mesa met in the Study Session
room at City Hall, 20 East Main Street, on March 12, 2026, at 9:21 a.m.
COMMITTEE PRESENT
COMMITTEE ABSENT
STAFF PRESENT
Francisco Heredia, Chairperson
Jennifer Duff
Scott Somers
None
Candace Cannistraro
Lauren Lowe
Holly Moseley
Chairperson Heredia conducted a roll call.
1.
Items from citizens present.
There were no items from citizens present.
2-a.
Hear a presentation and discuss eligible activities and current and potential city projects and
programs related to Community Development Block Grant (CDBG), HOME Investment
Partnerships Program (HOME), Emergency Solutions Grant (ESG), and Human Services
funding.
Housing and Community Development Administrator Justin Boyd displayed a PowerPoint
presentation. (See Attachment 1)
Mr. Boyd reviewed the City of Mesa’s proposed federal and local funding sources and eligible
activities for Fiscal Year (FY) 26/27, noting that strict federal regulations govern how funds can
be used. He emphasized that although the presentation indicates that Human Services/A Better
Community (ABC) has an allocation of $651,663,only $547,163 of Human Service funds are
available for allocation this year after required set aside and prior commitments. He stated that
the ABC program is funded through donations made by Mesa residents to support community
services and that staff is recommending not utilizing these donation funds for allocation at this
time. He added that the City may may consider revisiting potential uses of these funds in the
future. (See Page 2 of Attachment 1)
Mr. Boyd described the role of the U.S. Department of Housing and Urban Development (HUD)
and indicated that the City administers the funds locally, while partnering with non-profit
organizations and community stakeholders. He explained that the COM is a HUD entitlement
community that receives certain federal housing and community development funds directly
from HUD, rather than from the state. He noted that being an entitlement community allows the
OFFICE OF THE CITY CLERK
Community & Cultural Development Committee
March 12, 2026
Page 2
City to design programs and allocate funding that addresses local needs, while maintaining
compliance with federal regulations. (See Pages 3 and 4 of Attachment 1)
Mr. Boyd advised that the City administers several local programs from federal and local funding
sources. He identified the primary federal programs, and the local funding through Human
Services and ABC, which the City provides. He commented that combined, these fund sources
create a coordinated system that supports housing stability, community development, and
essential services to Mesa residents. (See Page 5 of Attachment 1)
Mr. Boyd mentioned that CDBG is one of HUD’s most flexible funding tools for local
government, and is intended to reach community development needs, while primarily benefiting
low-to moderate-income households. He indicated that due to this flexibility, CDBG plays a
critical role in neighborhood revitalization and improving conditions in areas with the greatest
need. (See Page 6 of Attachment 1)
Mr. Boyd described the eligible activities for CDBG funds, and the hierarchy of lower-risk and
higher-risk activities for CDBG non-public service activities. He defined that lower-risk activities
can be implemented more quickly and produce measurable results and he highlighted several
projects. He identified the CDBG activities that present a higher level of implementation risk due
to their complexity, and noted the projects that fall within that category. (See Pages 7 through 9
of Attachment 1)
Mr. Boyd stated that the selection of CDBG projects affects HUD’s required 1.5 timeliness ratio,
which measures unspent funds versus annual grant amounts and must remain at or below
1.5%. (See Page 10 of Attachment 1)
Mr. Boyd explained how the City distributes CDBG funds between public service and non-public
service activities. He mentioned that $295,000 was allocated for public service activities, with
Phoenix Rescue Mission receiving funding through an RFP process for community navigation
services, while the remainder stayed in-house. He added that for non-public services, the City
began focusing on projects for park improvements and prioritized timely spending and federal
compliance. He stressed that managing the program internally gives the City greater oversight
of outcomes. (See Page 7 of Attachment 1)
Deputy City Manager Candance Cannistraro noted that due to past difficulties meeting the 1.5
timeliness ratio, the City shifted more funding in-house to improve control and project success.
In response to a question from Committeemember Somers, Mr. Boyd explained that the budget
is based on prior-year allocations since current year HUD allocations are received later, making
estimates necessary.
Ms. Cannistraro stated that CDBG funding is generally stable each year and is divided into two
categories: public services, partly handled in-house, and non-public services, which as of last
year were 100% allocated to in-house emergency rehabilitation programs.
In response to a question from Committeemember Duff, Ms. Cannistraro confirmed that the
overall intent is to benefit low-income residents. She stated that eligibility requirements remain
the same whether services are delivered through non-profits or directly by the City, and
recipients must also be certified.
Community & Cultural Development Committee
March 12, 2026
Page 3
Mr. Boyd highlighted the HOME Investment Partnership Program funds that help expand
housing opportunities. (See Page 11 of Attachment 1)
Ms. Cannistraro clarified that HOME funds are primarily used as gap financing for affordable
housing projects, often supporting developers applying for Low-Income Housing Tax Credits
(LIHTC). She mentioned that the City’s approach has evolved on how to create affordable
housing options within the City’s infill development.
In response to a question posed by Chairperson Heredia, Ms. Cannistraro answered that the
City is exploring options for brick-and-mortar assets, and stronger partnerships to ensure
successful outcomes.
Mr. Boyd summarized the programs that are supported by the Emergency Solutions Grant
(ESG). (See Page 12 of Attachment 1)
Ms. Cannistraro explained ESG funds are typically given to non-profits for services, are the
smallest funds received from the federal government, and have the same requirements as
others. She mentioned staff have not experienced any issues with the spending down of these
funds.
Mr. Boyd described additional local Human Services and ABC funding that supports non-profits
and may not be fully covered by federal funds. (See Page 13 of Attachment 1)
In response to a question from Chairperson Heredia, Ms. Cannistraro affirmed that the Human
Services and ABC funding are more flexible than HUD funds. She explained the difference
between the ABC and Human Services funds.
Discussion ensued regarding funding options and future plans for SunAire operations,
communicating donation use to residents, and exploring alternative funding sources.
Mr. Boyd provided an overview of the HOME-American Rescue Plan (ARP) federal funding
source and how the dollars support Mesa’s community. (See Page 14 of Attachment 1)
In response to a question posed by Chairperson Heredia, Ms. Cannistraro clarified that funds
must be spent by September 2030 and only certain operational costs are eligible for SunAire.
Mr. Boyd explained that the non-congregate shelter to supportive services is a much lower risk
activity, and he discussed the services supported. (See Page 15 of Attachment 1)
Mr. Boyd reviewed the timeline for the upcoming schedule and commented that the process
promotes transparency and public participation in accordance with federal regulations governing
the planning of federal funds. (See Page 16 of Attachment 1)
Chairperson Heredia suggested using these funds as a temporary solution for SunAire, while
long-term options are explored.
Additional discussion ensued regarding CDBG allocations, spend down requirements and
deadlines, direction of the committee, and steps following Council’s recommendation.
Community & Cultural Development Committee
March 12, 2026
Page 4
Committeemember Duff expressed her concerns with the potential termination of the SunAire
project, lack of support for non-profits with steady funding, and Human Services funding.
Mr. Boyd clarified that HOME-ARP funds are separate from this funding process and would not
affect the agencies or other funding sources.
Chairperson Heredia acknowledged the challenges non-profits face with application periods for
City funds. He suggested moving the process forward to allow time to seek other options and
sponsors, emphasizing it is up to the Council to make the final decision. He supports
considering as an option for the recent issues with SunAire and homelessness, noting that data
shows the program is impactful and sustainable.
Committeemember Somers stated that after next week’s discussion, the Committee will provide
a recommendation to Council.
Committeemember Duff proposed that if the Council proceeds, a provision be included to
restore Human Services funding to its original purpose providing an opportunity to support
SunAire’s progress and allow time to explore other funding options. She emphasized the need
to continue serving Mesa’s homeless population.
Chairperson Heredia thanked staff for the presentation.
2-b.
Hear a presentation and discuss proposed programs to support redevelopment priorities and
initiatives.
Manager of Urban Transformation Jeff McVay introduced Development Services Director Nana
Appiah, Redevelopment Administrator Jeff Robbins, Economic Development Director Jaye
O’Donnell, Code Compliance Director Angelica Guevara, and displayed a PowerPoint
presentation. (See Attachment 2)
Mr. McVay explained that the Redevelopment Toolkit includes several tools informed by staff’s
comparative research and national best practices tailored to fit the Mesa environment. He
added that eight different tools were developed to be a pilot for a comprehensive redevelopment
program and assist in meeting Council’s strategic priorities. He noted that an important goal of
redevelopment is the convening of stakeholder focus groups used to determine the tools that
will be successful and useful to the development community, small business owners, and
property owners. (See Page 2 of Attachment 2)
Ms. O’Donnell highlighted the feedback from the two focus groups, stating that both groups
expressed strong support for the toolkit. She mentioned that several of the refinements include
plan resources for marketing and more flexibility through the various menu items. She added if
Council’s direction is to move forward, staff will focus on making the application process easy to
apply and understand. (See Page 3 of Attachment 2)
Mr. Robbins provided an overview of the public infrastructure tool and its function. He
commented that the tool is designed to assist with only the public side of utilities. (See Page 4 of
Attachment 2)
In response to a question from Committeemember Duff, Mr. Robbins replied that either a small
business owner or property owner can apply.
Community & Cultural Development Committee
March 12, 2026
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Ms. Guevara discussed the enhanced code compliance tool for the blight removal program,
noting the title may change. She stated that the main goal of the program is to offer grants to
assist property and small business owners, remediate blight, and beautify properties. She
commented that code issues deter investments in surrounding proprieties and reduce business
activity, impact health and safety, and negatively contribute to areas with struggling economic
activity. (See Page 5 of Attachment 2)
Ms. Guevara highlighted the vacancy registration program and the benefits to property owners
and the City. She indicated that she anticipates the program to initially be revenue neutral with
no fee for the program. She noted after the property is vacant a year, there would be annual
fees starting with $150 in year one, and the purpose of the fees are for inspections for safety
and to recuperate staff costs, while motivating business or property owners to reoccupy their
buildings. (See Page 6 of Attachment 2)
Responding to a question from Chairperson Heredia, Ms. Guevara answered that the City does
not have a current vacancy registry. She explained that the addition of the vacancy registry
program is expected to help reduce many of the problems that exist with trespassing,
vandalism, and eliminate delays in finding property or business owners. She noted that staff do
not have the capability to track vacant properties and that approximately 7.7% of buildings in
Mesa are vacant. She reported on the benefits of having contact information for business and
property owners.
Chairperson Heredia proposed including a feature in the registry that would allow business and
property owners to be notified.
Ms. Guevara advised that one feature of the program is to adopt by ordinance a requirement of
property owners to register vacant buildings proactively, without needing a complaint or blight
notice. She added that if owners do not voluntarily register and the property is flagged by Code
Enforcement, they will request registration information to ensure a local contact.
Responding to multiple questions from Committeemember Duff, Mr. Robbins clarified that the
vacancy registration requirement would be for all commercial properties citywide and relates to
undeveloped dirt or by-pass parcels within Redevelopment Areas (RDA). He stated that staff is
working on a notification system to inform business and property owners if their property is in an
RDA and to understand what is required to meet compliance.
Ms. O’Donnell described the demolition and remediation program and the benefits of
reinvestment. She advised that reimbursement occurs after owners pay upfront, and while
current funding does not cover remediation, there are ongoing discussions with Arizona
Department of Environmental Quality (ADEQ) to potentially support remediation. (See Page 7 of
Attachment 2)
Responding to a question posed by Chairperson Heredia, Ms. O’Donnell stated that staff will
take into consideration ways to reduce permitting and other City-related costs to further
incentivize demolition and remediation.
Mr. McVay provided an overview of the Reuse Ready Program, which is intended to support
small business growth. He discussed the challenges with older buildings and the significant
costs to revitalize older neighborhoods. (See Page 8 of Attachment 2)
Community & Cultural Development Committee
March 12, 2026
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Mr. Appiah outlined the Placemaking Program which is specific to commercial districts taking
initiatives through the City’s Capital Improvements projects (CIP) or working in partnerships with
developers. (See Page 9 of Attachment 2)
Mr. McVay summarized the Strategic Acquisition and Analysis Program, noting that certain city
parcels are strategically located so that their redevelopment can significantly impact surrounding
properties. He stated the intention is to focus on areas in which strategic investment is
necessary, where the market is not responding to current conditions. He emphasized the City
would be following standard City policies, and no acquisitions could be incurred without Council
approval. (See Page 10 of Attachment 2)
In response to a question from Committeemember Somers, Mr. McVay replied that the main
opportunity lies in completing feasibility studies and collaborating with private property owners.
He added that by identifying sites with appropriate zoning and development proposals, owners
can reposition their properties for improved economic activity, either through sale or joint
ventures with developers.
Mr. Robbins provided an overview of the Economic Development Administration (EDA)
Revolving Loan Fund, the only tool involving federal funding and has more complex
administration. He commented that the fund addresses lending gaps in the commercial market
for loans between $50,000 and $250,000. He mentioned the City is exploring options for seed
funding and alternative revolving loan fund models with fewer restrictions. (See Pages 11 and
12 of Attachment 2)
Mr. Robbins described the general process for administration of the tools and stated that there
is staff support, depending on the tool, available to assist with the pre-application process. (See
Page 14 of Attachment 2)
Mr. Robbins discussed that many of the tools are designed to be applicable across any
redevelopment area, and currently the City’s RDA encompasses approximately 4.5%. He
recognized that numerous additional areas could also benefit from these resources with this
year’s allocation, and a primary objective is to fund the development of a new RDA plan aimed
at identifying areas exhibiting signs of blight. He emphasized that in accordance with state
statutes, the City will complete all required reporting, after which a comprehensive plan will be
created to expand the City’s designated territory. (See Page 15 of Attachment 2)
Mr. McVay advised that the City intentionally leaves existing RDAs unchanged since those are
designated as the City’s single central business district, and that 4.5% of the city is
grandfathered in under a previous state statute. He advised that updating these areas would
subject the City to current laws limiting central business districts to 2.5% of land area.
Ms. O’Donnell discussed the marketing strategy and the goal of communicating Mesa’s vision
and the support available to stakeholders. (See Page 16 of Attachment 2)
Mr. McVay reviewed expenditure targets, noting that the requested $3 million allocation will be
distributed across six tools, with flexibility to respond to market demand. He commented that the
intention is to have a maximum cap of $3 million on individual tools. (See Page 17 of
Attachment 2)
Community & Cultural Development Committee
March 12, 2026
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In response to a question from Chairperson Heredia, Mr. McVay confirmed that having funds
available offers the ability to seek other funding sources and additional private or non-profit
dollars for support. He noted many of the programs have a match requirement so that the
program can have a multiplier effect beyond what the City’s investment would be.
Mr. Robbins emphasized that Council’s direction is for the program to demonstrate public
benefit to Mesa residents. He reviewed the public benefit options to be used while building out
the tools to 100%, provided Council wants to proceed in that direction. (See Page 18 of
Attachment 2)
Mr. Robbins highlighted the three categories that measure the impact of the programs and
potential modifications. (See Page 19 of Attachment 2)
Mr. Robbins reviewed the launch schedule of the proposed toolkit and emphasized the need for
immediate tools, while ensuring a clear rollout that benefits business owners. He mentioned that
the City is already working on the vacancy registration and noted potential delays with the
revolving loan fund due to challenges. (See Page 20 of Attachment 2)
Mr. Appiah explained that the tools cannot be deployed if the regulatory barriers are not
removed. He pointed out that the City is working with a consultant to determine ways to remove
the barriers and improve efficiency.
Committeemember Duff proposed recapturing funds from property turnover and reinvesting
them to strengthen the acquisition fund. She emphasized organizing approachable one-on-one
sessions with the Mesa Business Builders (MBB) to help make the process less intimidating and
clarify funding sources.
Mr. Robbins added that the funding source for the majority of the tools is the General Fund at
this time, except for EDA, which is a federal source. He expressed openness to other funding
sources following the initial step taken by the City to start the fund, if Council directs staff to
proceed in that direction.
In response to a question from Committeemember Duff, Mr. McVay explained that $3 million is
allocated as part of the Office of Urban Transformation budget and the City is the administrator
of the funding.
Responding to a question from Committeemember Somers, Mr. Robbins replied that Council
will be given the presentation at the March 26 Study Session.
Committeemember Somers agreed with the idea of pursuing more revenue streams and
expressed his support of the Redevelopment Program Toolkit.
Chairperson Heredia suggested researching the Superstition Springs area for deployment of the
tools.
Chairperson Heredia commented that the Consensus of the Board is to move the
recommendations forward to the full Council and thanked staff for the presentation.
Community & Cultural Development Committee
March 12, 2026
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3.
Adjournment.
Without objection, the meeting adjourned at 11:25 a.m.
I hereby certify that the foregoing minutes are a true and correct copy of the minutes of the Community
and Cultural Development Committee meeting of the City of Mesa, Arizona, held on the 12th day of
March 2026. I further certify that the meeting was duly called and held and that a quorum was present.
__________________________________
HOLLY MOSELEY, CITY CLERK
lr
(Attachments – 2)
Justin Boyd, Housing and Community Development Administrator
March 12, 2026
Overview of FY 2026/2027
Funding Sources
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Community and Cultural
Development Committee
March 12, 2026
Attachment 1
Page 1 of 17
FY 2026/2027 Tentative Funding Allocations
CDBG -
$3,675,410
HOME -
$6,618,404
ESG –
$340,016
Human
Services/ABC -
$651,663*
CDBG Administration (≤20%): $2,940,328
CDBG Public Service Allocation (15%): $551,312
CDBG Non-Public Service Allocation: $2,389,016
2
Community and Cultural
Development Committee
March 12, 2026
Attachment 1
Page 2 of 17
What is HUD?
U.S. Department of Housing and
Urban Development.
Federal agency responsible for
housing and community
development programs.
Provides funding to cities to
address housing needs and
homelessness.
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Development Committee
March 12, 2026
Attachment 1
Page 3 of 17
What is an
Entitlement
Community?
Cities that receive HUD funding
directly from the federal
government.
Funds distributed annually using
federal formulas.
City of Mesa qualifies as a HUD
Entitlement Community.
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Development Committee
March 12, 2026
Attachment 1
Page 4 of 17
HUD and Local
Funding Sources
Federal Programs: Community
Development Block Grant (CDBG)
HOME Investment Partnerships
Program (HOME)
Emergency Solutions Grant (ESG)
Local Programs: Human Services
and A Better Community (ABC)
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Development Committee
March 12, 2026
Attachment 1
Page 5 of 17
Community Development Block Grant (CDBG)
CDBG is a federal HUD program that provides flexible funding to cities
to address community development needs.
Funds primarily benefit low- and moderate-income residents.
Typical uses include housing rehabilitation, public facility
improvements, neighborhood infrastructure, and limited public
services.
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Community and Cultural
Development Committee
March 12, 2026
Attachment 1
Page 6 of 17
Eligible CDBG Activities
Public Service Activities (subject to 15% cap):
Homeless services and housing stability programs
Senior services, youth programs, and food assistance
Case management and supportive services
Non-Public Service Activities:
Housing rehabilitation programs
Public facility and accessibility improvements
Neighborhood infrastructure improvements (sidewalks, lighting, drainage)
Code enforcement and blight removal
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Community and Cultural
Development Committee
March 12, 2026
Attachment 1
Page 7 of 17
Lower-Risk CDBG Non-Public Service
Activities
Emergency Rehabilitation Programs – Health and safety repairs for
low-income homeowners.
Public Facility Improvements – Parks, community centers, and ADA
accessibility upgrades.
Neighborhood Infrastructure Improvements – Sidewalks, lighting,
drainage, and accessibility improvements.
Code Enforcement and Blight Removal – Addressing unsafe structures
and neighborhood deterioration.
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Development Committee
March 12, 2026
Attachment 1
Page 8 of 17
Higher-Risk CDBG Non-Public Service
Activities
Economic development activities - Projects that rely on job creation or
retention requirements and require detailed documentation showing jobs
primarily benefit low- and moderate-income persons.
Property acquisition for future redevelopment - Projects dependent on future
financing, environmental review, or development timelines that can delay
project completion and expenditure.
Large multi-partner development projects - Activities involving multiple
funding sources or development partners that increase administrative
complexity and implementation timelines.
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Development Committee
March 12, 2026
Attachment 1
Page 9 of 17
How CDBG Project Selection Influences the
HUD 1.5 Timeliness Ratio
HUD requires entitlement communities to maintain a CDBG timeliness ratio of
1.5 or lower, which measures funds remaining in the City’s HUD line of credit
compared to the annual grant amount.
Projects that move quickly to construction and produce measurable outcomes
help maintain compliance.
Lower-risk activities such as housing rehabilitation, public facility
improvements, and neighborhood infrastructure projects typically spend
funds more quickly.
Complex or high-risk projects with long timelines can delay expenditures and
increase the risk of exceeding HUD’s timeliness threshold.
Riskier projects → slower spending → higher HUD compliance risk.
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Development Committee
March 12, 2026
Attachment 1
Page 10 of 17
HOME Investment Partnerships Program
HOME is HUD’s primary program for creating and preserving affordable
housing.
Funds support development and rehabilitation of affordable rental
housing.
Additional uses include homebuyer assistance and tenant-based rental
assistance for low-income households.
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Development Committee
March 12, 2026
Attachment 1
Page 11 of 17
Emergency Solutions Grant (ESG)
ESG supports a community’s homelessness response system.
Funds may be used for emergency shelter operations, rapid rehousing,
and homelessness prevention.
Programs also support street outreach and coordinated entry services.
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Development Committee
March 12, 2026
Attachment 1
Page 12 of 17
Human Services and A Better Community (ABC)
Local funding supporting nonprofit service providers.
Programs address crisis services, prevention, transitional services, and
long-term support.
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Development Committee
March 12, 2026
Attachment 1
Page 13 of 17
HOME-ARP
HOME-ARP (HOME Investment Partnerships – American Rescue Plan) is a one-
time federal funding source provided by HUD to address homelessness and
housing instability.
Funds must serve qualifying populations, including individuals or families who
are homeless, at risk of homelessness, or fleeing domestic violence.
Eligible uses include affordable rental housing development, tenant-based
rental assistance, supportive services, and non-congregate shelter.
The City has been allocated $5,614,116 in HOME-ARP funding, with up to 15%
$842,117.40 permitted for administrative costs, leaving a $4,771,988.60
available to allocate.
All HOME-ARP funds must be fully expended by September 30, 2030, or they
may be subject to recapture by HUD.
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Development Committee
March 12, 2026
Attachment 1
Page 14 of 17
Transition from Non-Congregate Shelter to
Supportive Services (HOME-ARP)
Local homelessness response data indicates that many individuals
accessing shelter require intensive case management and housing
navigation to successfully transition into permanent housing.
Redirecting HOME-ARP resources toward supportive services allows the
City to expand case management capacity, fund staff positions, and
strengthen housing stabilization programs.
This strategy maximizes the impact of HOME-ARP funding by helping
residents move more quickly from crisis situations into stable housing
rather than focusing solely on creating additional temporary shelter
units.
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Development Committee
March 12, 2026
Attachment 1
Page 15 of 17
Upcoming Timeline
Next CCD Meeting – March 19, 2026
Annual Action Plan Draft Complete for Public Comment –
March 24, 2026
FY 2025/2026 Funding Recommendations to City Council –
May 4, 2026
Annual Action Plan Due to HUD – May 15, 2026
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Development Committee
March 12, 2026
Attachment 1
Page 16 of 17
Thank you for your time and participation.
Questions?
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Development Committee
March 12, 2026
Attachment 1
Page 17 of 17
Redevelopment
Program Toolkit
Community and Cultural
Development Committee
Jeff McVay
Manager of Urban Transformation
Angelica Guevara
Code Compliance Director
Nana Appiah
Development Services Director
Jeff Robbins
Redevelopment Administrator
Jaye O'Donnell
Economic Development Director
March 12, 2026
Community and Cultural
Development Committee
March 12, 2026
Attachment 2
Page 1 of 21
The Redevelopment Toolkit
Public
Infrastructure
Utility Assistance
Enhanced Code
Compliance
Blight Removal
Demolition &
Remediation
Blight Removal
Reuse Ready
Access + Life Safety
Vacant Property
Registration
Fill vacant spaces
Placemaking
Public Interventions
EDA Revolving
Loan Fund
Gap Financing
Strategic Acquisition
and Analysis
Studies and Purchases
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Development Committee
March 12, 2026
Attachment 2
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Description
The Mechanics
STAKEHOLDER FOCUS GROUPS
Developer + Property Owner
Small Business
Strong marketing plan
Reasonable reporting
requirements
Simple application process
Fast approval or denial
Strong support for the
infrastructure tool
Published, clear timelines
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Development Committee
March 12, 2026
Attachment 2
Page 3 of 21
Description
The Mechanics
PUBLIC INFRASTRUCTURE
Provides funding to offset the cost
of upgrading public utilities
needed for infill, adaptive reuse,
and redevelopment projects
Infrastructure is a prerequisite for
private capital investment that
generates tax revenue, create
jobs, places for people to live, and
improves resident’s quality of life
Why
Target: Infill, adaptive reuse,
redevelopment, and blight
remediation citywide
Two Tiers: Improvements $50k
or less (small business support)
with rapid review and approvals.
Projects over $50k are
negotiated
Exclusions: Public
infrastructure only—no private
infrastructure
Maximum Award: Case-by-
case
Match: Negotiated. For small
business, match may not be
required
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Attachment 2
Page 4 of 21
Description
The Mechanics
ENHANCED CODE COMPLIANCE
Code issues may deter investment
in surrounding properties, reduce
business activity, impact health
and safety, and negatively
contribute to areas with struggling
economic activity
Why
Eligibility:
Must be located within a
Redevelopment Area AND
LMI census tract OR
Evidence of need
Small business and property
owners only
Only improvements visible
from the street
Documented code case or
administrative determination of
blight
Legal non-conforming
structures
Exclusions: Non-fixed assets,
improvements not visible from
the street
Maximum Award: $25,000
Match: 1:1
A grant that helps property and
small business owners have
greater impact when remediating
blight and beautifying their
property
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Development Committee
March 12, 2026
Attachment 2
Page 5 of 21
Description
The Mechanics
VACANCY REGISTRATION
Code Compliance expends resources
tracking down owner information for
properties with code issues
City connects owners to resources,
potentially reducing duration of
vacancy
Trespass enforcement registration
Requirements:
All commercial properties
citywide
Vacant properties in RDAs
Industrial properties in RDA
only
Revenue Neutral
90 Days: Must register within 90
days of a vacancy
Annual Fees For Vacancy:
Fines for non-registration will
match commercial civil
violation fines
Enforced through existing civil
code compliance process with
appeal rights. Can become a lien
Requires owners of vacant
commercial buildings to register the
property with the City, maintain safe
conditions, and provide reliable
contact information
Why
Registration
No Fee
Year 1
Year 2
Year 3+
$150
$500
$250
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March 12, 2026
Attachment 2
Page 6 of 21
Description
The Mechanics
DEMOLITION AND REMEDIATION
Improves neighborhood
confidence and market perception
Catalyzes private investment in
underperforming areas
Requirements:
Must be located within an
RDA
Determined to be hazardous
or functionally obsolete
Maximum Award: Lesser of
50% of costs or $75,000
Match: 1:1
Annual Spending Cap:
$1,500,000
Other:
Reimbursement
Three bids required
Explore ADEQ partnership for
remediation support
Assists in removing obsolete or
unsafe structures to reduce blight
and prepare sites for reinvestment
Why
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Description
The Mechanics
REUSE READY
Lower barriers for tenant occupancy
Support small business and long-
term tax revenue
Enhance accessibility and safety of
older buildings
Upgrades existing commercial
spaces with life-safety and
accessibility improvements such
as fire suppression systems and
ADA compliance enhancements
Why
Requirements:
Must be located within an
RDA
Signed lease
Maximum Award: Lesser of 50%
of costs or $75,000
Match: 1:1
Other: Reimbursement
Eligible Uses
Fire sprinklers or equivalent
alternative
Structural issues
Demolition of hazardous or
unpermitted structures inside
the property
Improvements to unsafe
infrastructure (electrical,
plumbing)
Interior and exterior
improvements to meet ADA
compliance, including upgrades
to doorways, entryways, and
restroom accessibility
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Description
The Mechanics
PLACEMAKING
Why
Strengthens and differentiates key
areas of Mesa by creating
distinctive, high-quality public
environments that attract private
investment, support local
businesses, increase foot traffic,
and enhance overall economic
vitality and community pride
Funds strategic investments in
people-centered public space
improvements within targeted
areas
Requirements
Located within a commercial
business district
Located in public ROW or public
easement
City or public-private
partnership
Compatibility: Compatible with
plans (General, RDA, sub-area)
Identification of Needs
CIP
Transportation, Arts and
Culture, etc.
Goals identified in Council
adopted plans
Eligible Uses
Capital improvements,
activation projects and
enhancement projects for
public spaces
Includes art, lighting, signage
landscaping, seating, etc. for
programs that include, but are
not limited to:
Canal Enhancements
Gateway Monumentation
Wayfinding
Streetscape and
Alley enhancements
Public Realm Improvements
Temporary Installations
(pianos, parklets)
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Description
The Mechanics
STRATEGIC ACQUISITION AND ANALYSIS
Why
Shape outcomes in high-impact
locations
Accelerate catalytic private
investment
Reduce uncertainty before major
capital decisions
Funds property acquisition by the
City and feasibility studies that
position key sites for catalytic
redevelopment aligned with the
City’s long-term economic strategy
Guidelines For Public
Acquisition
Strategic location
First in to prove the market
Corrects a perceived or real
market failure
Site assemblage
Public purpose alignment
Guidelines for Feasibility Studies
Blighted properties
Placemaking opportunity
Strategic location
Bypassed parcels
Compatibility:
Compatible with plans
(General, RDA, sub-area)
Other:
Acquisition requires Council
approval
May be used to supplement
other funds for acquisitions
May be paired with
demolition and remediation
tool
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Description
The Mechanics
EDA REVOLVING LOAN FUND
Why
Fills the gap between microlenders
and commercial banks
Offers flexible, below-market
financing
Becomes a resource for Mesa
small businesses in perpetuity
A federally funded, locally managed
financing tool that provides gap
capital to small businesses that
cannot access traditional bank
financing
Requirements:
Establish RLF Plan (50% ready)
Must achieve certain job ratios
Comply with federal
environmental review
(NEPA, NHPA)
Davis-Bacon (construction)
Record keeping
Limit cash on hand
Other regulations
Revolving
Loan
Fund
Cycle
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Description
The Mechanics
EDA REVOLVING LOAN FUND
Why
Award Range: $50k-$150k
Interest Rate: Can be set by
City. Below prime rate
The Mechanics Continued
Small Business
City Role:
Trustee of federal assets
Creates the specific
objectives
Sets the interest rate
(with some limits)
Administration
Reporting
Money Matters:
Initial seed of ~500k
Up to $2M in EDA funds
50k-150k loans
(some flexibility)
Portfolio must leverage $2
for every $1 of RLF
City not responsible for
defaults
EDA can release the
Federal interest after
seven years
Obstacles:
40% match cannot
be paid by City
Comprehensive
Economic
Development
Strategy required
Alternative Path:
Community
Reinvestment Act
(CRA) is a qualified
activity for banks
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Budget and
Administration
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Notice,
closeout,
reimburse,
reporting
Decision
Intake,
review, and
preparation
for decision
Formal
Application
Pre-
Application
Support
ADMINISTRATION AND PROCESS
Generalized. Process may vary slightly for different tools
Day-to-day administration by the Office of Urban Transformation (OUT)
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REDEVELOPMENT AREA PLAN
Current Percentage of
City Covered by RDA
4.5%
Future Percentage of
City Covered by RDA
?
15
New Plan
Community and Cultural
Development Committee
March 12, 2026
Attachment 2
Page 15 of 21
MARKETING
• Partnerships
• Engage brokerages
• Annual event
• Direct marketing
• Collateral (digital/print)
• Earned and paid media
• Webpage
• Digital interactive map
• Non-traditional, direct marketing
• Property owners and developers
• Commercial real estate attorneys
• Lending institutions and capital
partners
• Architects and engineering firms
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EXPENDITURE TARGETS
TOOL
TARGET EXPENDITURE RANGE*
Public Infrastructure
$500,000 – $2,000,000
Business and Property Enhancement
$25,000 – $250,000
Vacancy Registration
Revenue Neutral
Demolition and Remediation
$250,000 – $1,500,000
Reuse Ready
$250,000 – $1,000,000
Placemaking
$500,000 – $1,000,000
Strategic Acquisition and Analysis
$0 – $1,000,000
Marketing and Plan Development
$25,000 – $125,000
Revolving Loan Fund
Revenue Neutral
Expenditures will not exceed available program funding
(*Range provides flexibility to adjust funding based on market demand)
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PUBLIC BENEFIT
Negotiated Public Benefit Options
Job creation or retention
Volunteer with Mesa’s Citywide Volunteer Program
Attainable or reduced rent for a defined period of time
Enhanced improvements in the public right of way
Lien on property to be paid back at sale
Deed restriction
Other negotiated value
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MEASURING IMPACT
Measuring Desired
Outcomes
Private capital
leveraged
Tax revenue generated
(one-time, ongoing)
Jobs created or
retained
Economic activity as a
result of new housing
units
Measuring
Program Efficiency
Vacant spaces filled
Application turn around
times
Businesses and
projects supported
Annual and all-time
fund utilization ratio
(lent-to-total fund ratio)
Measuring Long-
term Impacts
2-3 year lookbacks on
funded projects
Qualitative data
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PROPOSED TOOLKIT LAUNCH SCHEDULE
Mid
2026
Late
2026
2027
•
Vacancy Registration
•
Placemaking
•
Strategic Acquisition and Analysis
•
Public Infrastructure
•
Enhanced Code Enforcement
•
Reuse Ready
•
Demolition and Remediation
•
Revolving Loan Fund
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Questions and Discussion
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