City of Mesa Opportunity Zones Investment Prospectus

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.

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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.

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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

9

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

■

ElectraMeccanica - $47 million investment

■

Dexcom - $35 million investment

■

Amazon – $16 million investment

■

Apple expansion – $4 million investment

■

CMC Steel expansion – $434 million investment

■

Auer Precision expansion - $20 million investment

■

Top Aces – $250 million investment

■

Niagara Bottling expansion - $28 million investment

■

KP Aviation – $7 million investment

■

Optum RX – $20 million investment

■

Comarch – $23 million investment

■

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.

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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