Proposed tax incentive deal could bring more upscale dining to Mesa

A proposed mixed-use development at the northwest corner of Hawes and Elliot roads could bring upscale restaurants to the area if the city of Mesa and a developer forge a retail development tax incentive agreement.

During its Monday meeting, the Mesa City Council unanimously approved issuing a notice of intent to enter the tax incentive deal with Martens Development Co. for The Craftsman project. The notice was on the council’s consent agenda in which all items are handled through one motion and vote.

The Craftsman is a 19.25-acre development that is to include apartments, retail and fine dining.

The proposed agreement was discussed by council members during an Oct. 22 study session. The development will have about 30,000 square feet of retail space and 10,000 square feet of restaurant space.

“The development agreement structure is set up so that the developer will construct The Craftsman, including the public improvements on the east and west side of the entire development, so 82nd Street and Hawes Road. Then the city is constructing the Elliot Road frontage along the property,” Jaye O’Donnell, the city’s economic development director, told the council at the study session.

The city’s improvements along Elliot Road adjacent to The Craftsman will include pavement, turn lanes, curbs and gutters, sidewalks, landscaping, streetlights and striping.

Martens Development will be contributing more than $750,000 to the road improvement project.

“That contribution to the infrastructure would then be eligible for reimbursement from construction sales tax and sales tax that’s generated by the project if the developer meets certain minimum requirements,” O’Donnell said.

One of those requirements calls for bringing in upscale restaurants to the 10,000-square-feet of the development.

According to a council staff report, the restaurant or restaurants must be “modern, upscale … defined as a chef-driven, full-service restaurant offering a distinctive, non-standardized dining concept, contemporary interior design, premium ingredients and a curated menu and beverage program.”

In addition, the restaurant must be a brand with fewer than 100 locations in the United States. It also cannot operate in another location in Mesa under the same brand within a 10-mile radius.

“It’s estimated that over a 10-year time period, plus a little bit of construction at the beginning, the city is estimated to receive a gross tax revenue of $3 million. And then the repayment that we’re looking at is only $775,000,” said Kelly Whitmore, a deputy city attorney for Mesa, told the council at the Oct. 22 meeting. “We’re also looking at a potential of 160 on-site jobs.”

Located within Hawes Crossing, The Craftsman will include 387 elevator-served apartments, clubhouse, pool, pickleball court, dog park and walkable plazas, according to Martens Development Co.’s website.

“The opportunity to utilize what’s going to happen on Elliot Road as part of a scheduled and voter approved road improvement package … to try to bring something a little better than the typical drive-thrus that we have seen, those efforts are starting to pay off. We’re seeing some really good restaurants starting to pop up.” Vice Mayor Scott Sommers said.

The council will take action on the proposed tax incentive agreement for The Craftsman at its Nov. 16 meeting.

Janet Perez can be reached at jperez@iniusa.org. Please send your comments about this article to AzOpinions@iniusa.org. We are committed to publishing a wide variety of reader opinions, as long as they meet our Civility Guidelines.