03Case Study · Select a Parcel

Two parcels. One platform.

03Case Study · The Platform, applied to one parcel

1 West Main · Downtown Mesa.

The sections below walk the ZMunicipal platform — Plan Alignment, Regulatory & Site, Concepts, and Fiscal Impact — against a real, City-owned parcel offered for partnership: the SE corner of W. Main + S. Center, one block from the Center/Main light-rail station and adjacent to the Mesa Arts Center. Every designation, citation, and figure traces to a primary source.

p. 89–90Map 5T6MS ConfirmedApril 2026
1 West Main existing single-story building, looking east on W. Main St.
Existing · Looking EastSingle-story · DC base / DE overlay
33.4148° N · 111.8318° W
Open in Google Maps →
SW Corner · E Main + S Center±0.2 mi to Center/Main light rail · Downtown Mesa, AZ
03CConcepts · Live Models

One site. Three capital strategies.

Concepts A, B, and C are three distinct capital strategies on the same parcel — not phases of one project. Each carries its own program, code path, capital intensity, and timeline. Move the sliders to stress-test the city's fiscal position under each.

Concept A — Corner · eveningConcept A — Street-level · arcade diningConcept A — Patio · sidewalk lifeConcept A — Frontage · activated
Walkthrough · arcade dining
01 / 07
Concept A

Adaptive Reuse

Chef-driven F&B destination in the existing envelope.

GBA
±4,000 SF (existing)
Seats
~115–135
Parking
28 stalls (existing)
Cost Range
$1.5–3.0M
Revenue
$2.5–5.0M / yr
Open
12–18 months
Floor Stack
  • ROOF · existing low-slope, no occupancy change
  • L1 · A-2 restaurant + bar · 115–135 seats · arcade dining
Entitlement Path
  1. 01DC base zone + DE overlay · no FBC opt-in required
  2. 02IEBC 2024 change of occupancy · M → A-2 (Ch. 10)
  3. 03Full NFPA 13 sprinkler · ADA path-of-travel upgrades
  4. 04Mesa Fire pre-app · apparatus + hydrant confirmation
Live Fiscal Model
$500/SF
$250/SFBase · $500/SF$900/SF
$3.8M
$1.5MBase · $3.8M$6.0M
85%
60%Base · 85%100%
City Fiscal Position
Annual TPT (2.0%)
$75K
Construction Sales Tax
$40K
One-time
Permanent FTE
35
Construction Jobs
13
Cumulative
Project Cost
$2.0M
Stabilized Value
$9.4M

Illustrative · order-of-magnitude only. TPT at Mesa's current 2.0% rate. A formal fiscal impact study is recommended prior to final council submission.

04BMaster Comparison

Three concepts. One council read.

Fiscal rows re-model live from each concept's slider state above — stress-test a concept, watch its column update here.

Concept A
Adaptive Reuse
Concept B
Mixed-Use Residential
Concept C
Mixed-Use Office
Stories
1 (existing)6–85
Total GBA
±4,000 SF±67–82K SF±57–66K SF
Primary program
Destination F&BResidential + F&B + rooftopBoutique office + F&B
Parking
28 existingStructured · no min.Structured · no min.
Project cost
$2.0M$47M$36M
Annual TPT (2.0%)
$75K / yr$76K / yr$48K / yr
Construction sales tax
$40K one-time$938K one-time$713K one-time
Permanent jobs (FTE)
355585
Construction jobs
13313238
Timeline
12–18 months36–42 months30–36 months
Zoning path
DC base · no FBC opt-inFBC opt-in · T6MSFBC opt-in · T6MS
Entitlement risk
LowModerate — board reviewLower — likely admin review
Capital intensity
LowHighMid–high
Best-fit partner
Chef-driven operatorVertical multifamily developerOffice developer + anchor tenant
Bottom Line

On the current model, Concept CMixed-Use Office leads the city's fiscal read. The site, the plan, and the council's 12–18 month window are aligned — what remains is choosing the partner.

03ACase Study · Plan Alignment

Mapped to Mesa 2050 + council priorities.

Direct alignment with the Moving Forward Together: Tomorrow's Mesa 2050 General Plan, the Downtown placetype / Evolve growth strategy, and Mayor Freeman's Elevate Mesa priorities as articulated in the February 2026 Council Strategic Planning Session.

Mesa 2050 General Plan Placetypes — 1 W. Main project site in the Downtown placetype.
Mesa 2050 · Placetypes & Growth StrategySite sits inside the Downtown placetype — highest-intensity Evolve category.
Mesa 2050 / Council PriorityHow 1 West Main RespondsSource
Land use designationDowntown placetype — the plan's highest-intensity urban category (up to 100 du/ac, 10.0 FAR), supporting mixed-use, higher-density, pedestrian-scaled infill.p. 89–90
Evolve growth strategyDowntown is an Evolve area — the plan's directive for the most significant change in development character and intensity. The existing single-story building is precisely the underutilization Evolve targets.Evolve
Economic developmentExpands employment and a diverse local economy; attracts quality retail, dining, hospitality, and office that retains spending in Mesa.ED1 / ED5
HousingProvides a range and mix of housing in proximity to transit. Concept B directly advances this — adds residential units to the downtown transit corridor.H1 / H4
Transportation / mobilitySupports transit-oriented development and reduces vehicle miles traveled. Site is 0.2 mi from the Center/Main light-rail station.CM3 / CM4
Placemaking / characterStrengthens Downtown Mesa as a vibrant, walkable urban center with active ground-floor uses, public-realm investment, and distinctive identity.LU2 / LU5
Infill / strategic growthA 0.45-acre infill parcel already within the city's water, sewer, transportation, and utility infrastructure — no new city investment required.LU3
Central Main PlanParcel is designated Modern Downtown — the plan's highest-intensity character type, requiring a 4-story minimum with full street wall and structured parking. Concepts B and C are plan-anticipated.p. 68
DE (Downtown Events) overlayEnables unlimited annual special events (rooftop, outdoor dining, Mesa Arts Center cross-programming) with a standard Special Event License — no annual cap.
Elevate Mesa (Mayor Freeman, 2026)Quality infill over sprawl, redevelopment of underperforming sites, fiscal responsibility, strategic placemaking in the downtown core. 1 West Main is precisely the redevelopment target Elevate Mesa describes.Elevate Mesa2026
Council Strategic Plan (Feb. 2026)Downtown Mesa named the #1 priority location for placemaking investment within a 12–18 month tactical window.Council SessionFeb 2026
03BCase Study · Regulatory & Site

Six layers. One confirmed envelope.

This parcel is not governed by a single zoning designation. Six distinct regulatory layers apply simultaneously — base zone, form-based overlay, adopted subarea plan, general plan placetype, platted encumbrances, and recorded title. The transect (T6MS) is confirmed in writing. Form — not use — is the binding constraint.

T6MS · Block-Scale
T6MS · Block-ScaleMesa GIS · transect overlay on parcel
T6MS · Wider Context
T6MS · Wider ContextAdjacent T5MSF / DC / DE patterning
APN 138-41-023
APN 138-41-023Maricopa County Assessor parcel
#LayerConfirmed FactSource
01Base Zone + OverlayDC (Downtown Core) base zone with the Downtown Events (DE) overlay applied separately — not a combined designation. DE permits unlimited annual special events under a Special Event License.JO
02FBC Overlay · TransectForm-Based Code floating opt-in overlay. Transect T6MS — confirmed. Standards: 135′ max height (no max. for LEED); 100% build-to line; 50′ min ground-floor depth; structured parking required.
03Central Main PlanModern Downtown character type — the plan's highest-intensity type. 4-story minimum, full street wall, structured parking, awning or arcade along ROW, over 90% lot coverage.p. 68
04General Plan 2050Downtown Placetype · Evolve Growth Strategy. Multi-family up to 100 du/ac; mixed-use and non-residential up to 10.0 FAR. The highest-priority change designation in the 2050 framework.p. 89–90
05Platted EncumbrancesW. Main alley ROW along the southern boundary — permanent public right-of-way. The south 10′ of the original lot is excluded from the parcel per deed and is not buildable area.
06Title EncumbrancesFirst Fidelity Bank DOT $1.01M; U.S. SBA DOT $828K; assignment of rents; existing tenant in occupancy; 2025 taxes delinquent (1st installment).
03BUtility & Title Risk Register

What must be sequenced before vertical.

EPS Group utility due diligence (May 5, 2026) + Condition of Title Guarantee CTG-08005555 (April 7, 2026). All items reproduced as source appendices.

ItemConfirmed FactDispositionSource
Google Fiber VaultLocated at the NE corner within the parcel — relocation is a 6–18 month lead item and must be sequenced before vertical construction.Schedule-criticalItem 5
AT&T Transcontinental FiberRuns in S. Center Street. Highest-risk utility per EPS due diligence — coordination required for any frontage or street-side tie-in.High riskItem 1
84″ Master Storm DrainRuns in the W. Main Street centerline — constrains frontage utility tie-ins; structural and clearance review required at pre-app.EngineeringItem 11
Valley Metro Underground ElectricUnderground electric serving the Center/Main light rail platform — relocation infeasible; design must respect the easement.CoordinationItem 9
Existing Deeds of TrustFirst Fidelity $1.01M + SBA $828K with assignment of rents. Payoff/subordination sequencing required prior to closing.Title
Delinquent 2025 TaxesFirst installment of 2025 property taxes delinquent per CTG; cure required as a condition of conveyance.TitleSch. B Item 8
03DFiscal Impact · Mode 1 · The Numbers

The city's revenue position — and the tools to close it.

Mayor Freeman (February 2026): "New development must pay its own way and not shift costs to existing residents." TPT modeled at Mesa's current 2.0% rate; partnership tools below are federal, state, and City instruments available to a qualified P3 partner. All subject to eligibility confirmation and City Council approval.

Concept A
~$50K–100K / yr
F&B revenue (2% of $2.5–5M)
Concept B
~$200K–400K / yr
8K SF F&B + rooftop amenity
Concept C
~$160K–320K / yr
8K SF multi-tenant F&B at full occupancy
05BPartnership Tools Available

Eight instruments. One coordinated stack.

P3 / Tax
GPLET
Government Property Lease Excise Tax

On a City-owned parcel, a GPLET development agreement can abate property tax for up to 8 years (excise tax replaces property tax for up to 25). Materially improves feasibility for Concepts B and C.

A.R.S. § 42-6201
Federal
Opportunity Zone
Census Tract 421400

Federally designated Qualified Opportunity Zone. Capital-gains deferral and, on a 10-year hold, exclusion of gains on the QOF investment. A direct equity-attraction tool for new construction.

QOZTract 421400
Operating
Downtown Utility Rate
Small Business Attraction Program

Up to 25% reduction on City electric and water for qualifying ground-floor tenants in the first three years. Strengthens F&B and retail leasing across all three concepts.

City of Mesa
Operating
Downtown Sign Program
Tenant Signage Grant

Grant funding for ground-floor tenant signage in the downtown core — reduces tenant build-out cost and supports active-frontage goals.

City of Mesa
Process
Expedited Plan Review
Priority Review for Downtown

Compresses entitlement-to-permit timeline. Particularly valuable for Concept C, where office >10K SF is P by right in confirmed T6MS and the path is administrative.

Office of Urban Transformation
Process
Dedicated City PM
Office of Urban Transformation

A dedicated downtown project manager at no cost — coordinates entitlement, utility relocation sequencing (Google Fiber, AT&T), and inter-agency review (Valley Metro). Single point of contact through approvals.

City of Mesa
Form-Based
FBC Opt-In Support
Administrative Pre-App

City planning support for the Form-Based Code opt-in election (Concepts B and C), including pre-application confirmation of review path and SCIP thresholds.

Activation
DE Overlay · Events
Downtown Events Overlay

DE overlay over the DC base zone permits unlimited annual special events under a standard Special Event License — direct revenue and activation benefit for rooftop programming and Mesa Arts Center cross-events.

Sequencing Note

GPLET and ground-lease tools cannot close until the existing SBA Deed of Trust is consented or released (60–120 days) and delinquent 2025 taxes are cured. Initiate both before RFP issuance.

03D · Mode 2Fiscal Impact · Run Your Scenario

Same numbers, your assumptions.

Mode 1 above is the base-case fiscal read. Mode 2 here is the same model, made live: move construction cost, rent, and exit cap rate, and watch yield, stabilized value, and project economics recalculate across all three concepts — so council and counsel can interrogate the math in the room.

Construction cost1.00x
0% vs. base $/SF
Rent / revenue1.00x
0% vs. base rent
Exit cap rate+0.00 pts
+0.00 pts vs. base cap
Side-by-Side

Capital read

All three concepts, recalculated live. The highlighted concept has the best yield-on-cost under your current assumptions.

Best yield-on-cost
A
Concept A
Adaptive Reuse F&B
Total cost
$3.8M
Stab. value
$9.5M
NOI / yr
$711K
Yield-on-cost
18.69%
Profit (stab.)
$5.7M
IRR proxy (5yr)
47.70%
Hard cost$2.2M
Soft cost$405K
Land$1.2M
GBA
4,000
NLA
5,850
Months
15
B
Concept B
Mixed-Use Residential
Total cost
$60.5M
Stab. value
$21.2M
NOI / yr
$1.1M
Yield-on-cost
1.82%
Profit (stab.)
-$39.3M
IRR proxy (5yr)
-11.20%
Hard cost$47.5M
Soft cost$10.5M
Land$2.5M
GBA
99,000
NLA
51,000
Months
39
C
Concept C
Mixed-Use Office
Total cost
$44.0M
Stab. value
$9.4M
NOI / yr
$614K
Yield-on-cost
1.40%
Profit (stab.)
-$34.6M
IRR proxy (5yr)
-14.30%
Hard cost$35.0M
Soft cost$7.0M
Land$2.0M
GBA
69,000
NLA
27,000
Months
33

Illustrative model. Land cost held constant; hard and soft costs scale with the construction multiplier. Stabilized value derived from NOI ÷ exit cap. IRR proxy is directional — final underwriting confirmed at ZBuild engagement.

04Next Steps

Ten gates from feasibility to closed agreement.

Each step gates the next. Step 1 is complete — the previously gating T6MS designation is confirmed in writing. The critical path now runs through encumbrance resolution (Step 2) and utility relocation (Step 4), both City pre-development obligations.

Conceptual Schedule
18-month critical path · click any bar to jump to its step
Pre-RFPLaunchSelectionEntitlementClose
Pre-RFP
Launch
Selection
Entitlement
Close
T-2
RFP
M3
M6
M9
M12
M15
M18
Conceptual sequencing — not a contractual schedule. T-2 = today · RFP = Month 0 · critical path runs through Steps 02 + 04.
  1. 01
    Transect confirmed — complete. T6MS established in writing for APN 138-41-023 (Appendix O).
    CityDone
  2. 02
    Resolve SBA encumbrance — obtain lender consent or release on the $828K Deed of Trust.
    City + SBA60–120 days
  3. 03
    Cure delinquent 2025 property taxes (first installment).
    CityPre-RFP
  4. 04
    Initiate Google Fiber vault relocation (6–18 mo.) and AT&T fiber feasibility inquiry.
    City + Utilities6–18 months
  5. 05
    Obtain Valley Metro coordination letter (light rail + 84″ master storm drain).
    City + Valley MetroPre-RFP
  6. 06
    Quantify existing-tenant termination / relocation cost; disclose in RFP.
    CityPre-RFP
  7. 07
    Issue RFP / RFQ with confirmed transect, encumbrance status, and utility obligations disclosed.
    CityLaunch
  8. 08
    Partner selection; pre-application meeting; FBC opt-in election (Concepts B / C).
    City + PartnerSelection
  9. 09
    Design review (admin for Concept C; board for Concept B); GPLET development agreement to Council.
    Partner + CityEntitlement
  10. 10
    Close development agreement / ground lease; permit; construct.
    PartnerClose