Why Mesa council said no to Site 17 affordable housing despite neighbors' demands

Culdesac and Mesa are moving forward with their partnership to redevelop a 25-acre vacant city-owned lot in the heart of its downtown known as Site 17.

The City Council will vote on a nonbinding agreement between the two that outlines the next steps in the negotiations, at the April 1 meeting.

In the 1990s, a largely Hispanic neighborhood was bulldozed to make way for an entertainment district that never came. Proposals for Site 17 have come and gone leaving the site untouched for more than 20 years.

The lot along University and Mesa drives became an eyesore and a symbol of the city’s failed planning efforts. The newest proposal by Culdesac to bring a community with 1,000 housing units and up to 50,000 square feet of retail space, but fewer cars than normal, is showing promise.

During a presentation to the City Council on Thursday, staff shared an update on the proposal and asked for direction on a key demand from residents. Stipulate affordable housing as an element of the proposal or not?

For more than a decade, neighbors and community activists have been calling for any proposal to include affordable housing as a way to atone for the residents who were kicked out. Councilmember Jenn Duff, who represents the area and downtown Mesa, was the sole voice who urged staff and council to incorporate this demand from residents.

“I think we have some kind of wiggle room in 25 acres over 10 years to do something,” Duff said. “And we’re making a statement that everybody can live here in one complex where you don’t have to be in a slum or affordable project. 'You are part of our community in our downtown.'”

Affordable housing units are a non-starter for Culdesac without some sort of subsidy from the city, Jeff McVay, manager of the downtown transformation office told the council.

After a lengthy discussion among the council members, the majority directed McVay to move forward with negotiations without that as a stipulation.

“Right now we are checking a lot of affordable housing boxes in downtown Mesa,” Mayor John Giles said. He pointed to projects like La Mesita, El Rancho Del Arte and other projects in the pipeline.

He said this part of Mesa needs market and above-market rate housing to diversify the stock in downtown to bring people with disposable income to support businesses in the area. Other council members echoed that sentiment.

“I’m going to say it is the consensus of the group to not entertain affordable housing at Culdesac,” Giles said closing out the discussion on the topic.

If the agreement is approved, over the next nine months staff and the developer will nail down a more detailed development agreement that will lay out the city and Culdesac’s obligations to build out Site 17.

Duff told the Republic she was disappointed that the majority of the council didn’t decide in favor to include affordable housing units.

“I loved the idea of this being a mixed-income project and because the state doesn’t allow inclusionary zoning the city had the opportunity as the land owner to dictate the terms,” she said.

She remains confident, though, that the project will be a “gold star” for Mesa.

Duff also stated there’s some urgency to get a deal finalized before there is a change of guard in 2025 with a new mayor and at least one new council member.

Locals disappointed with council’s decision

Disappointment was the resounding sentiment among neighbors and community activists.

Oscar Mancinas, a resident living in the historic Black Washington-Escobedo Heritage Neighborhood, north of Site 17, said he felt deceived.

“This has been a big rallying cry” for the community, Mancinas said. “The city owns that land. It is then extensively owned by the public. And unlike private developments, unlike private land deals, the government entity and public have an option to think beyond simply the logic of profit,” he said.

He pushed back on Giles’ statement saying this is the perfect location for it to bring relief  to the “incredibly hostile landscape for anybody who is working class or doesn’t make a substantial amount of money.”

Mancinas hopes the door isn’t completely closed on affordable housing as planning progresses.

Tia Oso, another longtime resident of the Washington-Escobedo neighborhood echoed Mancinas' disappointment.

She called the council's direction short-sighted, ridiculous and said it doesn’t take into account the unhoused residents in the city. For Oso, it shows the city doesn’t care to “correct past mistakes.”

“That land has been vacant for so long and definitely needs to be, in my opinion, for housing,” she said. “ I just wish there was a more comprehensive holistic vision around how to address the issue current Mesa residents have.”

One community advocacy group called Valley Interfaith Project plans to stay involved throughout the planning and rezoning process.

Heidi Thomas, one of the group’s leaders, said the city missed an opportunity. Mesa has tools other private developers don’t have to make affordable housing happen at the property because it owns it, she said.

Mesa could have set an example for developers on how to create a mix-income community at Site 17, she said.

At a Valley Interfaith Project community meeting in October, its members made it clear to city staff that affordable housing was important for any redevelopment on the site.

“There’s no other people in Mesa who have this opportunity to create this type of space and they’re letting it go,” Thomas said.

What comes next?

A development agreement between the city and Culdesac will lay out the two’s obligations such as potential reimbursements from the city for public improvements.

The city will also require deadlines the developers must reach, as well as prove its financial capacity to build the project.

McVay told the Republic the 25-acre lot will not be sold all at once but rather by phase. The land is currently being appraised. In 2021, when the city got close to signing an agreement with another developer the land was valued at about $20 million, he said.

The proceeds of the land sale would likely go back to reinvest in the infrastructure for the area such as pedestrian connections to the light rail or other public transit options.

Soon after the initial agreement is approved, Culdesac could begin hosting informal community meetings by way of food truck nights, McVay said.

Culdesac will not seek a government property lease excise tax or GPLET for the project, a tax break that has become increasingly controversial among the public.

Site 17 will be built out over the next decade, McVay said. Among all the other proposals brought forward to the city for Site 17, this is the one that McVay has the most confidence in.

“I feel better about (Culdesac’s) motivation than I felt about any of the other ones up to this point,” McVay said.

Reporter Maritza Dominguez covers Mesa, Gilbert and Queen Creek and can be reached at [email protected] or 480-271-0646. Follow her on X, formerly Twitter: @maritzacdom.

This article originally appeared on Arizona Republic: Mesa says no to affordable housing on vacant city-owned Site 17