Mesa mulls Gateway taxing district

The Mesa City Council is going to discuss whether to designate the Phoenix-Mesa Gateway Airport area a special taxation district.

Termed a “community facilities district,” it would be a separate agency, which could impose a special tax on property owners, once they move in, to pay for shared infrastructure through bonding.

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District 6 Councilman Scott Somers, who represents the area, views this option as a creative alternative to help the city grow despite lagging revenue.

The bond obligation is passed on to the end users of the property. No property owners outside the district would have to repay the bonds.

Unlike a secondary property tax, which the city also is seeking this November, money for the community facilities bond could also pay for operations and maintenance.

Mesa adopted this districting option in 2002, but it’s the first serious stab at actually using it to pay for basic infrastructure and operations, city officials say.

“It’s been dormant so far, but because of interest from the development community in the Gateway area, we’re considering using this as a financial tool,” said Scot Rigby, project manager for Gateway-area economic development.

The Gateway area is about 32 square miles. Under this designation, area developers would build the roads, fire stations, water and other basic facilities.

Rigby said because the city does not have the financial capability at this point to pay for infrastructure costs, the developers can use this tool to go to the district body to issue bonds.

Somers said that by using this model, the city is transferring the burden from the taxpayer to the end user.

At least one major area project — the development of General Motors Desert Proving Ground by DMB Associates — is currently taking shape. Plans are afoot to create a mix of uses on that 3,200-acre property, including high-rises, golf courses, resort, office and retail.

The city hopes to attract 100,000 well-paying jobs for the east Mesa area.

This morning, the council will convene a special executive session to revisit, among other things, the application fees to be charged and additional language on issuance of bonds. A public presentation also will be made to discuss the districting option.

There is some concern that a landowner paying this special tax may not be willing to get double-dipped into paying for general obligation bonds that apply to all city residents.

At a time when it’s cash-strapped, Mesa is looking to grow its east side.

“It’s a lot of growth in an area with zero infrastructure, no roads, sewer, nothing,” Somers said, referring to the proving ground property. “We need to come up with some way of funding and it’s likely this will move fast.”