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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 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 2 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 3 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 4 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 5 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 6 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 7 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 8 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) 9 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 10 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 11 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 12 Budget and Administration 13 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) 14 REDEVELOPMENT AREA PLAN Current Percentage of City Covered by RDA 4.5% Future Percentage of City Covered by RDA ? 15 New Plan 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 16 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) 17 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 18 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 19 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 20 Questions and Discussion 21