Mesa, developer hold Fiesta Village talks

Blotting out an eyesore in one of Mesa's busiest economic corridors prompted city officials to explore condemning the property to get an unresponsive developer's attention.

It appears to have worked.

Mesa explores condemning Fiesta Village

After many attempts by the city to reach the owners of Fiesta Village - a property near Fiesta Mall, the Bank of America building and other commerce destinations - city officials finally brought the developer to the table.

Owner W.M. Grace Development Co. met with Mesa officials last week involving the future of the site, which could include selling it, beautifying it or redeveloping it.

Mayor Scott Smith said during a press conference Tuesday that the revitalization of the property was no small matter. He said city officials have begun talks with the developer regarding the long-deteriorating, 17-acre property.

Fiesta Village, which has buildings with peeling paint and overgrown weeds rising through cracked parking surfaces, has long been a contentious priority for city officials who want to see the development of the area, or beautification along the busy city shopping district.

Several attempts by the Tribune to contact company owner Howard Grace were unsuccessful.

Along with Smith and City Manager Chris Brady, Councilman Dennis Kavanaugh, who has led the initiative, also reported that the long silence between the developer and the city was over and plans are in the works.

"The company said their preference would be to sell the site, and they have had some interest from several parties, but if they don't sell it, they will develop it themselves," said Kavanaugh, whose district encompasses the sprawling Fiesta Village property.

Perhaps sparking the recent talks, the Mesa councilman had previously asked the city attorney to explore the possible use of eminent domain on the fenced-off eyesore. Kavanaugh had said the site could be used for a police substation and would be paid for by voter-approved bonds.

The property has sat entirely empty since mid-2007, after several businesses left, including a movie theater, clothing stores and other shops.

Kavanaugh's actions were spurred by the previous lack of communication between the city and the developer.

In an earlier letter to the developer, Kavanaugh wrote: "It is increasingly difficult for me to defend your company's inaction on the site against criticism that it is blight on the surrounding businesses and neighborhoods."

However, Kavanaugh said, the direction of talks between the developer and the city changed last week from one-way to mutual.

The meeting on June 25 included city leaders and top executives of the development company, with the discussion surrounding the future of the Fiesta Village shopping center and either selling or revitalizing the area.

Kavanaugh pointed out that the developers said they were in talks with "potential buyers who would like to redevelop the site." He added, "If Grace Development is unable to sell the site, they indicated they would look at working with the city on revitalizing the site."

Kavanaugh said property owner Howard Grace told him the company would "take immediate steps to clean the site up, including removal of deteriorating signs, removal or moving of fencing and possible demolition of some of the structures on the site."

But the developer's efforts might be too little, too late in the eyes of some community and business members.

Mesa Chamber of Commerce President Charlie Deaton said the developer would have to do a lot more than just trim hedges or slap on a new coat of paint.

"I can appreciate the fact that they're concerned about the way it looks, but it really doesn't create the type of economic development we need in the area," he said.

Deaton said his office received complaints from neighboring businesses about the site.

"When you think about Fiesta Mall itself, it's a distraction when you have something across the street that's as rundown," he said. "I don't think anybody is going to look at that corner and be very proud."

Deaton said the site has been an eyesore for a long time, and part of the fault lies with the city.

"The issue Mesa has is we don't have a property tax," he said. "So, if you own a property and let it sit, you can afford to let it sit, because you don't have any expense and there's nothing in the way of economics that causes you to do anything."