By Roland Murphy for AZBEX
After roughly two decades of starts and stops, a Nov. 26 development agreement approved by Mesa City Council could kick off the most ambitious plan yet for the 80-acre site of the former Fiesta Mall at Southern Avenue and Alma School Road.
While the area around the former mall has seen significant private and public investment over the last decade, a definitive solution for the core site has remained elusive. Plans have ranged from a medical education and associated campus to a mixed-use master development with multifamily, commercial and flex-office uses. (AZBEX; March 20, 2023)
Current owner Verde Investments achieved what other developers eyeing the property could not and, over time, acquired all the parcels on the site from an assortment of different owners, creating an infill master plan called Fiesta Redefined. It demolished existing buildings on the site last July and successfully secured rezoning for mixed-use last December.
Now Verde plans to sell the property, or at least a portion of it, to Palo District LLC, an entity run by Vicky Mayo. Mayo is CEO of Sunny Day Sports, which was founded by her husband, Simer, in 2020 and functions as a global investment firm for sports and related social development projects.
Simer also serves on the board of the Arizona Commerce Authority.
Palo District
Council’s action approved creating a theme park district under the terms of Arizona law. The governing legislation was passed in 2021 and was initially intended to benefit the Arizona Diamondbacks. It was amended in 2024 to lower the population threshold for cities to qualify for the ability to create districts. The legislation establishes a mechanism for qualifying developments to set up a dedicated financing system under the oversight of an independent board comprised of members of the project’s local city council and appointed state legislators.
According to the statute, “The district is a corporate and political body and… has all of the rights, powers and immunities of municipal corporations. The district is considered to be a tax levying public improvement district for the purposes of Article XIII, Section 7, Constitution of Arizona.”
The board will have the power to issue revenue bonds and create an additional sales tax on business activities within the district.
Approval of the agreement and establishment of the Palo District are the first steps in a plan to create what the prospective owner is calling a “marquee project” on the Fiesta Redefined site. Officials and Council documents said the Palo District is just the second theme park district in the state and the only one currently active.
While specific project plans were not made available, multiple references to a stadium project were made in Mesa City Attorney Jim Smith’s presentation to Council.
The Arizona Republic reported there has been speculation for years about Mesa becoming home to a major sports stadium. The Arizona Coyotes were reportedly considering the city for a new home before ultimately relocating out of state, and Mesa officials confirmed last year they were in early discussions with Major League Soccer.
Other sports entertainment district projects around the country were included in the staff presentation to Council.
The area around Fiesta Redefined is represented by Councilmember Francisco Heredia. Heredia and Councilmember Rich Adams were elected to serve on the District board. Heredia called the site’s potential a “rare redevelopment opportunity.”
The Republic also quoted Heredia as saying the theme park district structure allows for a development that aligns with the City’s long-term vision while ensuring Mesa and its taxpayers are not exposed to financial risk.
