City Council Study Session - 2026-03-26
Meeting Intelligence Preview
Meeting Summary
Mesa City Council study session focused on two major presentations: a comprehensive redevelopment toolkit with eight programs to address blight and support small businesses, and federal/local funding recommendations for community development. Council directed staff to proceed with the redevelopment pilot program at $3M annually and approved HUD funding allocations for the 30-day public comment period, with human services funds directed to nonprofit organizations rather than the Off the Streets program.
Key Decisions (6)
Redevelopment Toolkit Direction
Council provided direction to proceed with an eight-tool redevelopment program including demolition/remediation grants ($75K max), code compliance revitalization grants ($25K max), vacancy registration ordinance, reuse ready program, strategic acquisition analysis, placemaking initiatives, and public infrastructure support. Program would be a 3-year pilot with $3M annual general fund budget.
CDBG Public Services Funding Recommendations
Staff recommended CDBG public services funding of $573,240 to Family Promise, Child Crisis Arizona, CASS Shelters, and A New Leaf, plus $292,526 set-aside for city navigation services.
CDBG Non-Public Services Set-Aside
$2.3M set-aside for City of Mesa Emergency Repair Program which assisted 165 homeowners last fiscal year, including 102 AC repairs/replacements and 103 mobile home projects.
HOME Program Funding Recommendations
Recommended $2.4M to A New Leaf for La Masita Phase 4 (54 units senior/veteran housing), contingent on LIHTC award; $400K for City of Mesa rental/utility deposit program; $400K for Habitat for Humanity for three vacant parcels in Washington Escobedo neighborhood.
Emergency Solutions Grant Funding
$314,515 allocated to Tempe Community Action Agency, A New Leaf (shelter operations), and Save the Family (rapid rehousing).
Human Services Funds Direction
Council directed staff to allocate $547,163 in human services funds to nonprofit organizations (alternative proposal on slide 21) rather than holding for Off the Streets program. Organizations include Oakwood Creative Care, Bringing Arizona Together, Arizona Brain Food, and others.
Development Activity (5)
La Masita Phase 4
54 units of senior and veteran housing. Three previous phases completed. Applying for Low Income Housing Tax Credits for third time.
Habitat for Humanity Development
Development of three vacant city-owned parcels for affordable housing.
Reid Park Improvements
Playground equipment funded with $1.4M CDBG funds in FY22-23, completed in 2.5 years, recently opened.
Copa Health Project
Demo of existing property and new build of family units. Going through LIHTC application process.
Commonwealth Project
Historic reuse project scoring 180 of 185 points on LIHTC application. Presented to council Monday.
Market Signals (5)
Housing Demand
52% of Mesa residents have housing costs at 50% or greater of income, indicating severe housing affordability challenges.
Commercial Demand
7.7% of Mesa commercial buildings are currently vacant, approaching 10% threshold that staff considers problematic.
Infrastructure
Small businesses attempting to open in Mesa frequently encounter unexpected infrastructure capacity issues (electric, water) that delay openings and threaten viability.
Sentiment
Focus groups of developers, property owners, and small businesses expressed strong support for redevelopment programs but emphasized need for minimal red tape, simple applications, and fast approval/denial decisions.
Housing Demand
Emergency repair program demand shows 76% of assisted households are elderly, 61% female head of household, and 48% disabled, with 57 households earning under $40K annually.