INVESTMENT PROSPECTUS City of Mesa Opportunity Zones
CONTENTS
■ Mesa’s Opportunity Zone Program ■ Mesa Opportunity Zones
Gateway Area Falcon District Main Street Corridor Fiesta District
■ Recent Citywide Investments ■ Population Comparisons ■ Social and Economic Overview ■ Proximity to Neighboring Markets ■ Regional Transportation ■ City of Mesa Overview ■ Testimonials ■ Mesa Quick Facts 2
MESA’S OPPORTUNITY ZONE PROGRAM
•
The Opportunity Zone program is a federal program designed to spur community investment by providing tax benefits to investors who hold their investment between five to ten years.
•
Each state could nominate up to 25% of qualifying low-income census tracts to become Opportunity Zones.
•
The City of Mesa has 11 census tracts that have been designated Opportunity Zones by the U.S. Department of the Treasury. 3
MESA’S OPPORTUNITY ZONE PROGRAM
Mesa’s designated Opportunity Zones
Falcon District
are anchored by four business districts:
Lo o
Main Street Corridor
Gateway Area Falcon District Main Street Corridor
Fiesta District Gateway Area
p2 02
US 60 Gateway Area
Fiesta District Each district is an ideal place to locate and grow a business. 4
MESA’S OPPORTUNITY ZONE PROGRAM
■ 11 Opportunity Zones in Mesa. ■ 94 Opportunity Zones in PhoenixMesa metro area.
Falcon District
■ 168 total Opportunity Zones in Arizona. ■ 528,159 citizens make up Mesa’s population.
Lo o
Main Street Corridor
Fiesta District Gateway Area
p2 02
US 60 Gateway Area
■ 53,512 citizens reside within Mesa’s Opportunity Zones. ■ 10.41% of Mesa’s Population reside within an Opportunity Zone.
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GATEWAY AREA
Phoenix-Mesa Gateway Airport is the second major airport serving the Greater Phoenix area. Mesa’s Gateway Area is ideal for: • Aerospace and defense firms • Research and development • High-tech manufacturers • Data centers • Large industrial users 6
GATEWAY AREA
Gateway Quick Facts ■ ■ ■ ■ ■
Businesses: 372 Population: 20,167 Labor Force: 6,019 Labor Force within 15 mins: 109,541 Median Household Income: $82,201
Source: 2021 ESRI within Opportunity Zone Boundary
Key Assets ■ ■ ■ ■ ■ ■ ■ ■ ■
Phoenix-Mesa Gateway Airport Foreign Trade Zone Military Reuse Zone Elliot Road Technology Corridor Pecos Advanced Manufacturing Zone Pecos Industrial Rail Access Train Extension Union Pacific Rail Spur Arizona Labs for Security & Defense Research ASU Polytechnic Campus 7
GATEWAY AREA
Companies in the Gateway OZ:
Bridgestone Americas Google – future home FUJIFILM Electronic Materials Dexcom Bonelli Doors & Windows Cannon Beach Legacy Sports Electra Meccanica – under construction
Able Aerospace Cessna Embraer CAVU Aerospace CMC Steel ZF TRW Matheson Tri-Gas 8
For Sale - $367,400
GATEWAY AREA
■ 7463 S 89th Pl -Gateway Airport Commerce Park, Lot 27 ■ 0.73 acre ■ Light Industrial Zoning
For Sale ` - $1,220,000 ■ ■ ■ ■
As of September 2022
8817 E Pecos Rd. 2 Acres Light Industrial Zoning Access to advanced utility infrastructure
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GATEWAY AREA
Gateway Infrastructure
$100 million in bonds leveraging additional $62 million from county to build additional roads / connections
Infrastructure in close proximity to most development sites.
Water and wastewater are managed by the City and power is managed by the Salt River Project.
Southwest Gas has robust natural gas infrastructure in these zones.
*Only City-managed infrastructure is depicted on the left.
Commercial building inventory: 766,501 SF
Avg. commercial building rent / SF: $15.11
Industrial building inventory: 3,785,758 SF
Avg. industrial building rent / SF: $8.60
May 2021
Source: CoStar 2021 Data Analytics
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FALCON DISTRICT
The Falcon District is anchored by the Falcon Field Airport and is a high-tech hub, suitable for: • Aerospace / aviation • Defense • Advanced manufacturing • Advanced business services
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FALCON DISTRICT
Key Assets Falcon Quick Facts ■ ■ ■ ■ ■
Businesses: 217 Population: 3,702 Median Household Income: $49,576 Labor Force: 1,003 Labor Force within 15 mins: 174,763
Source: 2021 ESRI within Opportunity Zone Boundary
■ ■ ■ ■ ■ ■ ■ ■ ■ ■
Falcon Field Airport The Boeing Companies Special Devices Inc. – Daicel Group MD Helicopters Nammo Defense Systems Northrop Grumman Piper Plastics, a Mitsubishi Chemical Subsidiary Amazon Mesa Hangars at Falcon Field 12 Home 2 Suites by Hilton
FALCON DISTRICT
For Sale - $6,000,000 ■ 2550 N Thunderbird Cir – Thunderbird Airport Plaza ■ Office ■ 53,356 square feet
For Sale - $1,250,000 ■ 5602 - 5606 E McKellips Rd. ■ 6,470 square feet ■ Portfolio of properties – office, retail, and a golf cart business
As of September 2022
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FALCON DISTRICT
Falcon Infrastructure The Falcon Opportunity Zone has robust infrastructure with natural gas, water, and sewer in most arterial streets. All utilities in this area are managed by the City of Mesa, except power which is managed by the Salt River Project. Commercial building inventory: 1,008,664 SF Average commercial building rent / SF: $14.64 Industrial building inventory: 2,196,382 SF Average industrial building rent / SF: $9.86 Source: CoStar 2021 Data Analytics May 2021
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MAIN ST. CORRIDOR
Main St. Quick Facts ■
■ ■ ■
Businesses: 1,427 19 Hotels 90 Restaurants Population: 26,343 Labor Force: 11,815 Labor Force within 15 mins: 308,305
Source: 2021 ESRI within Opportunity Zone Boundary
Key Assets ■ ■ ■ ■ ■ ■ ■ ■
Mesa City Plaza Mesa Convention Center Mesa Arts Center Arizona Museum of Natural History Mesa Historical Museum ASU @ City Center and adjacent The Studios Benedictine University @ Mesa Launch Point – Mesa’s Technology Accelerator 15
MAIN ST. CORRIDOR The Main Street Corridor offers opportunities for mixed-use, office development, restaurants, hotels, and multi-family housing.
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MAIN ST. CORRIDOR
May 2021
Main St. Corridor Infrastructure The Main Street Corridor Opportunity Zone has robust natural gas, water, and sewer infrastructure.
Utilities in this area are mostly managed by the City of Mesa including power in proximity to Downtown.
Commercial building inventory: 4,924,289 SF Average commercial building rent / SF: $15.55 Industrial building inventory: 5,165,011 SF Average industrial building rent / SF: $7.70
Source: CoStar 2021 Data Analytics 17
MAIN ST. CORRIDOR
For Sale - $1,800,000 ■ ■ ■ ■
20 W 1st St. 13,144 square feet 2-Story Office Building Built - 1974
For Sale - $3,000,000 ■ ■ ■ ■ ■ ■
As of September 2022
306 S MacDonald St. Former Grain Elevator 2,233 square feet Building Height – 100 feet Built – 1938 Zoning is flexible for redevelopment opportunities
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MAIN ST. CORRIDOR
For Sale - $1,400,000 ■ 755 E Main St. ■ 15,525 square feet ■ Former Drug Store
For Sale - $475,000 ■ 1144 – 1156 W Main St. ■ 0.22 acres ■ Zoning is flexible for redevelopment opportunities
As of September 2022
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FIESTA DISTRICT
The Fiesta District is home to cutting-edge industry clusters, a skilled workforce, easy market access, and extensive infrastructure. It is a prime location for: •
Mixed-use developments
•
Restaurants
•
Offices
In close proximity to this zone, Banner Health operates two hospitals: Banner Children’s at Desert Medical Center and Banner Desert Medical Center.
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FIESTA DISTRICT
Key Assets within Fiesta ■ ■ ■ ■
Mesa Financial Center Doubletree Phoenix/Mesa National General Lender Services Esurance, an Allstate Company
Companies within 1-mile of Fiesta OZ: • Mesa Community College • • Banner Desert Hospital; and • • Banner Cardon Children’s • Hospital
Fiesta Quick Facts ■ ■ ■ ■ ■
Businesses: 409 Population: 5,674 Median Household Income: $46,591 Labor Force: 2,836 Labor Force within 15 mins: 382,600
Infineon Santander USA Empire Southwest
Source: 2021 ESRI within Opportunity Zone Boundary
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FIESTA DISTRICT
Fiesta District Infrastructure
May 2021
The Fiesta District Zone has robust infrastructure with natural gas, water, and sewer in most arterial streets.
All utilities in this area are managed by the City of Mesa, apart from power, which is managed by the Salt River Project.
Commercial building inventory: 2,317,390 SF
Average commercial building rent / SF: $22.42
Industrial building inventory: 183,400 SF
Average industrial building rent / SF: $8.76
Source: CoStar 2021 Data Analytics
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FIESTA DISTRICT
For Sale – Price Undisclosed ■ ■ ■
1337-1341 S Alma 84,098 square feet Mixed-use Retail Center
For Sale – $37,000,000 ■ ■ ■
As of September 2022
1250 – 1342 S Country Club Dr. 200,091 square feet Mixed-use Retail Center
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RECENT CITYWIDE INVESTMENTS
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ElectraMeccanica - $47 million investment
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Dexcom - $35 million investment
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Amazon – $16 million investment
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Apple expansion – $4 million investment
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CMC Steel expansion – $434 million investment
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Auer Precision expansion - $20 million investment
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Top Aces – $250 million investment
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Niagara Bottling expansion - $28 million investment
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KP Aviation – $7 million investment
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Optum RX – $20 million investment
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Comarch – $23 million investment
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NTT Global Data Centers – $200 million investment 24
POPULATION COMPARISONS
Population Growth in Opportunity Zones Population 2010
Population 2021
% Change
Area
Mesa Opportunity Zones
39,580
55,886
41.19%
37 sq. miles
City of Mesa
439,910
528,159
20.06%
138 sq. miles
PhoenixMesa MSA
4,192,887
4,998,484
19.21%
14,565 sq. miles
Source: ESRI 2021
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SOCIAL AND ECONOMIC OVERVIEW
Social and Economic Overview
Mesa’s Opp Zones City of Mesa PhxMesa MSA State (AZ)
Poverty
Median Household Income
% Associate Degree or higher*
% No HS degree **
% Under 18
% Over 65
Black
Hispanic
Foreign Born
2,377
14,946
6,976
21.4%
$47,746*
20%
9.3%
23.5%
11.7%
20,905
138,327
53,919
11.6%
$58,181
39.6%
9.6%
24.3%
16.4%
287,392
1,551,131
707,563
12.1%
$63,883
41%
12%
24.1%
15.3%
317,462
2,208,663
976,301
13.5%
$58,945
38.9%
12.4%
23.2%
17.1%
41,989,671
60,481,746
44,932,901
12.3%
$62,843
41.7%
11.4%
22.6%
15.6%
U.S.
Source: 2019 US Census ACS 5-Year Estimates; *25 years or older
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NEIGHBORING MARKETS
PROXIMITY TO
REGIONAL TRANSPORTATION
■ ■ ■ ■
Highways and Ground Freight – Mesa has an abundance of freeways, highways, and state routes strategically located. Rail – Union Pacific and BNSF Railroad operate rail terminals in the Phoenix-Mesa metro area. Air Freight And Travel – Mesa has two airports, Falcon Field Airport and Phoenix-Mesa Gateway Airport, and is minutes from Phoenix Sky Harbor International Airport. Public Transit – Valley Metro provides bus and light rail service throughout the Phoenix-Mesa metro area. Metro Light Rail serves a 26-mile line in the Phoenix-Mesa metro area with stations from north Phoenix to Downtown Mesa.
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CITY OF MESA OVERVIEW
■ Located just east of Phoenix, Mesa is one of the fastest growing cities in the country and has all the advantages of a thriving metropolis while maintaining the charming feel for which its known. ■ Mesa is in the center of the Southwest and has a business-friendly environment, characterized by diversity and growth, a place where new businesses are seeded, and existing ones continue to grow. ■ Mesa has great infrastructure, quality education of every type and level, and a variety of amenities including expansive parks and a variety of amateur and professional sports facilities. 29
CITY OF MESA OVERVIEW
■ Mesa ranked #10 of America’s Most Playful Cities – BestPlaces, 2021 ■ 35th largest US city, population over 528,000. ■ Covering 138 square miles in a 21-city region with 4.9 million people and projected to grow to 6 million by 2030. ■ Close to major Western markets and Mexico. ■ Excellent access to power, fiber, transportation, and workforce. ■ Investment opportunities include manufacturing, mixed-use developments, offices, housing, and hotels.
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TESTIMONIALS
"Mesa is a great fit for Bonelli. With its low cost of living, educated workforce, freeway connections to major markets, and international airport, it is an ideal location for our headquarters and operations to be in one building." - Cameron Wyatt, President, Bonelli Doors & Windows
“Falcon Field area is a great place to grow our business. Our parent company, Mitsubishi Chemical Company, chose to invest in Piper Plastics, as well as to build our new Technology Center for North America in Mesa due to the growing skilled and young workforce, ideal climate, and excellent infrastructure in support of manufacturing business. We cannot wait to move in!” – Randy White, President, Piper Plastics
“We are thrilled to locate our new, state-of-the-art manufacturing facility in the Greater Phoenix area where the healthcare industry is seeing accelerated growth. We chose Mesa due to the available, talented workforce, in addition to the proximity to our headquarters in San Diego and our key suppliers.” – Kevin Sayer, President and CEO, Dexcom
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MESA QUICK FACTS
General ■ Year incorporated: 1883 ■ Elevation: 1,255 feet ■ Average high/low temperature: 86 / 57 ■ Median age: 36.6 ■ Average household income: $82,452 ■ Number of Mesa households: 193,314 ■ Average yearly rainfall: 9.29 inches ■ Average yearly days of sunshine: 301
32 Source: ESRI 2021; US Climate Data
MESA QUICK FACTS
Population Population
2021
2026
Population Growth 2010-2026
Mesa
528,159
555,155
26.17%
Arizona
7,426,164
7,938,518
24.19%
2021 Population by Age
Mesa
Arizona
0-14
20.3%
19.4%
15-34
27.6%
27.1%
35-54
23.1%
23.6%
55-74
20.9%
22.5%
75-85+
8.0%
7.4%
Source: ESRI 2021
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MESA QUICK FACTS
Top Private Employers Employer
Employees
Banner Health
8,321
The Boeing Company
4,319
Drivetime Automotive Group
1,401
24-7 Intouch
1,400
AT&T
1,311
Dexcom
850
Empire Southwest LLC
771
Santander Consumer USA
765
MD Helicopters
650
Salt River Project
631
Steward Healthcare
600
Nammo Talley Inc
523
ZF Group
520
Source: MAG Employer Database (2020 Update), reports from companies
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MESA QUICK FACTS
Available Labor Force Mesa
Phoenix-Mesa MSA
Labor Force
235,764
3,094,170
Unemployment Rate
5.9%
6.5%
Within a 30-Minute Drive of Downtown Mesa:
Within a 30-Minute Drive of US 60 & Val Vista:
■ Population: 2,044,733
■ Population: 2,203,467
■ Households: 794,980
■ Households: 837,455
■ Labor Force (16+): 964,900
■ Labor Force (16+): 1,017,039
Source: ESRI 2021
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MESA QUICK FACTS
Water Reliability and Sustainability ■ Mesa has a 100-year assured water supply designation from the Arizona Department of Water Resources. ■ The city has three water treatment plants with a combined capacity of 186 million gallons per day and Mesa’s reservoirs have a combined storage of 112 million gallons. ■ About 19% of Mesa’s water comes from 31 deep aquifer wells that can provide 83 million gallons of water per day. ■ The addition of the $126 million Signal Butte Water Treatment Plant in southeast Mesa has increased Mesa's water capacity by 24 million gallons per day and it has the capability to expand to 48 million gallons per day in the future.
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MESA QUICK FACTS
Higher Education Mesa is home to 14 colleges and universities with more than 40,000 students currently enrolled in higher education. ■ Mesa Community College: 15,395 students ■ East Valley Institute of Technology: 5,020 ■ Arizona State University, Polytechnic: 5,243 ■ Chandler-Gilbert Community College: 11,412 ■ A.T. Still University: 1,788 ■ Benedictine University: 559
Source: Reports from institutions 2021
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MESA QUICK FACTS
Higher Education Institutions Mesa Colleges and Universities Arizona State University’s Polytechnic Campus Arizona State University @ City Center A.T. Still University Northern Arizona University Benedictine University Arizona College Upper Iowa DeVry University University of North Dakota Community Colleges and Specialized Training Academies Mesa Community College CAE Oxford Aviation Academy Chandler-Gilbert Community College East Valley Institute of Technology Pima Medical Institute
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MESA QUICK FACTS
Educational Attainment Within a 30-Minute Drive of Downtown Mesa: ■ 1,380,556 professionals, 47% (age 25+) with an associate degree or higher.
Associate Degree: 8.4%
Bachelor’s Degree: 24.6%
Graduate Degree: 14.4%
Source: ESRI 2021
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CONTACT US
Kim Lofgreen Marketing & Business Development Manager Office of Economic Development City of Mesa 480-644-3962 Kim.Lofgreen@MesaAZ.gov MesaEconDev City of Mesa Office of Economic Development