By Mike Sunnucks | Rose Law Group Reporter
The Mesa City Council is considering approving a Government Property Lease Excise Tax (GPLET) deal for the second phase of a downtown residential development.
MHA III LLC (an arm of Marshall Urban Development) wants to build 72 new market rate apartments as part of the second phase of the Encore development at West First Avenue and MacDonald.
MHA built a 24-unit apartment building as part of the first phase of the development. It was the first new market-rate apartment development in downtown Mesa in more than 30 years.
The developer had planned affordable housing to build as part of the second phase. Now, MHA wants to build a $7.4 million three-building market-rate complex.
The second phase will have one- and two- bedroom apartments with an average rent of $1,121 per month, according to city documents.
The developer has also applied for a GPLET deal with Mesa. That tax benefit would run for 8 years and the developer contends it will accelerate development and construction on the 1.6-acre property.
Mesa wants to bring more housing, restaurants and retail to the Main Street area. The council will consider the development and GPLET deal at its August 26 meeting.
