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Major Rezoning Sparks New Development Opportunities at Signal Butte and Williams Field

The Mesa City Council has approved a significant rezoning for the area south of Williams Field Road and on both sides of Signal Butte Road. The rezoning encompasses approximately 125 acres, transforming the land from Agricultural (AG), Light Industrial (LI-PAD), General Commercial (GC-PAD), and General Industrial (GI) to General Commercial (GC-PAD) and Light Industrial (LI-PAD) with a Council Use Permit (CUP). This change facilitates the future development of an auto mall, large commercial centers, and a multiple residence development, aiming to create a mixed-use community that includes residential, commercial, and industrial elements.

In conjunction with this rezoning, the City Council also passed a resolution to enter into an Amended and Restated Pre-Annexation Development Agreement with BCB Group Investment, LLC for the “Destination at Gateway” project. This agreement covers approximately 127 acres within Mesa and 27 acres in Maricopa County, focusing on improvements at the corner of South Signal Butte Road and East Williams Field Road. The agreement includes provisions for limited reimbursement of up to $14.4 million for public infrastructure improvements such as roads, utilities, and streetlights, contingent on the completion of specific milestones by the developer.

Additionally, the City Council approved a resolution authorizing the City Manager to enter into an Amended and Restated Development Agreement with BCB Group Investment, LLC. This agreement is structured to meet the requirements of a retail development tax incentive agreement under A.R.S. §9-500.11 (Version 2). The project known as “Destination at Gateway” involves developing approximately 127 acres of real property within Mesa and 27 acres in Maricopa County, contingent on annexation. The development includes commercial and multiple residential uses, anchored by an auto mall with up to eight new car dealerships and associated businesses.

 

Why it matters

This rezoning is a pivotal move for the Signal Butte and Williams Field area, set to ignite a wave of development that will transform the landscape and economy. The introduction of an auto mall and expansive commercial centers is expected to draw a diverse range of businesses and consumers, catalyzing economic growth and generating new jobs. Additionally, the development of multiple residences addresses the increasing housing demand, providing modern living spaces within a vibrant, mixed-use community. This project aligns with the Mesa 2040 General Plan’s vision for a mixed-use activity district, fostering a balanced and sustainable community with ample opportunities for employment, shopping, and living. The strategic location near major arterial roads and future freeway extensions further enhances its appeal as a prime destination for businesses and residents alike.

The agreement with BCB Group Investment, LLC outlines significant investments in public infrastructure, with the developer committed to completing improvements by 2028 and opening the first new car dealership by 2029. The City of Mesa anticipates substantial sales tax revenues from this development, with projections indicating that even a single dealership could generate $15 million in sales tax over 12 years, while a fully developed auto mall could contribute over $255 million over 21 years. This financial influx will greatly benefit the city’s economic landscape, ensuring that the incentives provided to the developer will be more than offset by the revenue generated.

The Mesa City Council’s approval, along with recommendations from the Planning and Zoning Board and city staff, underscores the project’s importance and adherence to city regulations and strategic goals. The conditions attached to the approval ensure that each phase of development meets the highest standards of design, infrastructure, and community integration, paving the way for a well-planned and dynamic urban environment.

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When: June 17, 2024

Where: 10600 and 11000 blocks of East Williams Field Road (south side) and 6200 and 6300 blocks of South Signal Butte Road (both sides)

Who: Michael Schuerman, owner; Pew & Lake, applicant; BCB Group Investment, LLC

What: Area Rezoning

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