Mesa Proving Grounds

by District 6 Councilmember Scott Somers

The Mesa Proving Grounds and Phoenix-Mesa Gateway Airport have long been touted as a catalyst for Mesa’s economic future. Mesa has a vision of a thriving passenger airport and a surrounding region that supports over 100,000 high-value jobs; provides a vibrant urban center; and is home to top-tiered corporate and emerging technology companies.

Over the past year I have been deeply involved in laying our strategic plan for the Mesa Gateway Airport and Mesa Proving Grounds. The stage is set for something great.

But, as a council member I also have come to this reality: Mesa does not have the financial wherewithal to make this dream happen on its own.

It’s time to be entrepreneurial. Rather than relying solely on traditional City-funded mechanisms to build critical infrastructure and public amenities, Mesa must look at additional tools for financing growth and development. Community Facilities Districts (CFD) may be just one of several tools that would work in the Gateway Area.

The CFD provides an avenue for managing the challenging issues in developing infrastructure in an area that does not already have significant development. Roadways, traffic control, water and sewer projects, police and fire facilities, flood and drainage, public parking, landscaping and lakes, and pedestrian malls are eligible for CFD funding under Arizona law.

Essentially, the City permits a private development to create a special district, which has authority to issue tax-exempt bonds for the purpose of financing public infrastructure. This would be similar to the City issuing General Obligation bonds. Since these CFDs are also independent bodies separate from the City, CFDs allow for independent financing and would not negatively impact Mesa’s financial position.

What is also valuable is that Community Facility Districts can also provide a short-term mechanism for financing the operation and maintenance of these facilities. For Mesa, both the initial development costs and ongoing operation and maintenance cost will be critical in determining the value and measure of proposed development.

To pay for these projects an assessment is placed on properties inside the CFD boundaries. Residents and property owners outside a CFD are not assessed for repayment of the bonds, meaning that, "growth pays for itself."

Two major developers have purchased the Mesa Proving Grounds and there are dozens of additional landowners surrounding Phoenix-Mesa Gateway Airport. The use of CFD financing may permit many of them to come together to fund the initial construction and ongoing operation and maintenance of important improvements that will maximize development potential.

While these are certainly tremendous benefits, Mesa must consider the merits and impacts of Community Facilities Districts carefully. A CFD can be a valuable funding tool that Mesa has never used before: however it is not the funding panacea for the Gateway Area. There are other considerations that must be made. While District property owners and residents may understand the merits of their CFD assessment and the services it funds, it will also be important for them to understand and support the merits of future citywide expenditures and how those citywide expenditures lead to the overall economic health and vibrancy of Mesa. Otherwise, self-funded districts may tend to vote against citywide projects.

Mesa must do careful long-range land use and fiscal planning if we are to use a Community Facilities District to finance desired development around Gateway. Over the coming months it will be with keen interest and involvement that I will be engagement in this critical discussion of how to finance the Mesa Gateway Area.