Mesa staff bypasses council on $2.6M land buy
Mesa city staff bypassed City Council to but 9 acres of vacant land at 1340 E. University Drive from the federal government for $2.6 million.
- The April purchase advances the city Energy Department’s plan for a large natural-gas-fired power plan because the parcel is next to an electrical substation near the northeast corner of University and Stapley drives.
- The city wants to reduce costs by generating its own electricity at peak periods when power is most expensive.
“That said,” he added, “city management was involved throughout the process and tentative plans for the site were presented to council shortly after the purchase was finalized.”
Mesa’s Real Estate Services department provided the Tribune with a detailed timeline of the University Drive property acquisition.
For example, after the city accepted the government’s offered price in 2022, there was a due diligence period of several months that included an environmental assessment.
The Tribune asked the mayor and all council members how they felt about being bypassed by the administration on the University Drive purchase.
- Mesa only had 30 days to submit a letter of interest for the land after the General Services Administration sent a memo in 2021 notifying the city that the 9 acres were deemed surplus and were for sale.
For example, after the city accepted the government’s offered price in 2022, there was a due diligence period of several months that included an environmental assessment.
The Tribune asked the mayor and all council members how they felt about being bypassed by the administration on the University Drive purchase.
“I’m OK skipping the council over it,” Freeman said. “Federal guidelines were followed. … I’m glad that they found a willing customer to sell it and create this microgrid in this area. It’s an important piece of (power) generation.”
- Freeman, who also serves on the Salt River Project Association Council, said he’s interested in diversifying Mesa’s electrical portfolio, noting that natural gas plants can be powered within 10 minutes when necessary.
- “I know at the end of the day, the council would have approved purchase of that land,” he said.
“I discussed this purchase with City Manager Chris Brady after city staff and city management identified this as a good opportunity for the expansion of Mesa’s energy resources,” he said in an email.
“I appreciate that staff kept me informed of the process. There’s a lot of potential for this site and Mesa will continue to explore the next steps.”
According to the City Charter, purchases of goods exceeding $100,000 must go before the council.
It routinely signs off on contracts and purchases for everything from water treatment chemical contracts to new stage curtains for the Mesa Arts Center.
But Mesa City Attorney Jim Smith said the charter’s dollar threshold for council approval does not apply to land purchases.
“In Mesa, sales of real (estate) property go to council but purchases are not required to go to council; however, management has traditionally taken large purchases to council at a study session, regular meeting or council committee, so council is informed,” Smith said in an email.
“Bear in mind that there are many small purchases of land that the City does on a regular basis, similar to other municipalities, such as the acquisition of slivers of land or easements for road or utility projects,” he added.
It routinely signs off on contracts and purchases for everything from water treatment chemical contracts to new stage curtains for the Mesa Arts Center.
“In Mesa, sales of real (estate) property go to council but purchases are not required to go to council; however, management has traditionally taken large purchases to council at a study session, regular meeting or council committee, so council is informed,” Smith said in an email.
“Bear in mind that there are many small purchases of land that the City does on a regular basis, similar to other municipalities, such as the acquisition of slivers of land or easements for road or utility projects,” he added.
- In May of 2022, Council approved $1.6 million in American Rescue Plan Act funds to buy the building at 111 Main St. to serve as a downtown restaurant incubator.
- Earlier this month the council voted to approve the purchase of the downtown parking garage for $8 million.
An eventual proposal for a large natural gas-burning power plant or battery storage facility on the site could generate controversy in the future.
The Mesa Energy Department’s plan to develop in-house power generation appears to have significant support on council.
- Asked why the land purchase didn’t go before council, Energy Resources Program Manager Tony Cadorin said in an email:
- “Mesa did not bring this purchase before council due to the requirements of the purchase process through the federal government and because council approval isn’t required for city purchases of property.”
- “That said,” he added, “city management was involved throughout the process and tentative plans for the site were presented to council shortly after the purchase was finalized.”
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City eyes recent land purchase for power plant
A graphic shared with Mesa’s Sustainability and Transportation Committee tries to put the gap between peak solar production and peak energy demand into a visual format. City staff say that quick activating energy sources like natural gas plants would help the city close the add and increase its solar portfolio. (City of Mesa/Submitted)
In April, the City of Mesa finalized a deal to purchase 9 acres of vacant land at the northeast corner of University and Stapley drives from the U.S. Government for $2.6 million.
In the quitclaim deed transferring the property to the city, the U.S. General Services Administration stated the property was “duly determined to be surplus to the needs and requirements of the United States of America.”
In April, Energy Resources Program Manager Tony Cadorin told City Council his department was studying options for the site, including a “large-scale” 30 megawatt natural gas-burning power plant or a utility-scale battery storage facility.
Earlier this month, Cadorin signaled that the city is leaning toward the gas plant, presenting the Sustainability and Transportation Committee with a detailed explanation of the benefits for Mesa in building its own natural gas-burning facility.
Natural gas is a fossil fuel that emits CO2 into the atmosphere when it burns, but Cadorin argued that even if a dynamic source is not green, the overall impact would be the greening of the city’s energy portfolio.
“I think people have just an instant aversion to (natural gas). ‘Oh, you’re adding natural gas generation. Don’t do that.’ Well, we’re doing this for a reason,” Cadorin told committee members.
“Without these flexible, dynamic resources, we just simply can’t add much more solar” to the grid, he said.
A big battery could perform the same function as a plant, but Cadorin said the technology was still expensive and the city has some concerns about safety, as there was an explosion at a battery facility in Peoria in 2019 and fire at a Chandler facility in 2022.
He added that energy demands in the Southwest are growing, and many utilities are replacing coal and gas fired plants with variable energy sources like solar and wind.
Because there is a gap between peak solar production and peak demand for energy on a daily and seasonal basis, Cadorin said his department worries that the frequency of grid “instability” could grow in the future and make the open energy market costlier.
In the quitclaim deed transferring the property to the city, the U.S. General Services Administration stated the property was “duly determined to be surplus to the needs and requirements of the United States of America.”
- The GSA first offered the land to the city in June of 2021 and the city accepted.
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The 9-acre Rogers Substation site is surrounded by residential neighborhoods and public facilities, including Hughes Elementary School and the Mesa Public Schools Curriculum Services building to the north.
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Earlier this month, Cadorin signaled that the city is leaning toward the gas plant, presenting the Sustainability and Transportation Committee with a detailed explanation of the benefits for Mesa in building its own natural gas-burning facility.
- The sustainability committee is made up of three council members and is currently chaired by Councilwoman Alicia Goforth.
Natural gas is a fossil fuel that emits CO2 into the atmosphere when it burns, but Cadorin argued that even if a dynamic source is not green, the overall impact would be the greening of the city’s energy portfolio.
“I think people have just an instant aversion to (natural gas). ‘Oh, you’re adding natural gas generation. Don’t do that.’ Well, we’re doing this for a reason,” Cadorin told committee members.
“Without these flexible, dynamic resources, we just simply can’t add much more solar” to the grid, he said.
A big battery could perform the same function as a plant, but Cadorin said the technology was still expensive and the city has some concerns about safety, as there was an explosion at a battery facility in Peoria in 2019 and fire at a Chandler facility in 2022.
- Between the city’s long-term contracts for hydropower, a recent solar power contract with SRP and new installations of city- and customer-owned panels, Mesa’s electric utility is up to 40% renewable energy, he said.
- Cadorin said a big city-owned natural gas plant would allow the city to bring up its renewable portfolio to 63%.
He added that energy demands in the Southwest are growing, and many utilities are replacing coal and gas fired plants with variable energy sources like solar and wind.
“We can’t put all our eggs in one basket,” he said.
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‘Oh, there’s gonna be a power plant in my neighborhood.’ Well, there’s certainly examples that we’ve seen where … it’s actually a very beautiful building.”
- In response to a question from Vice Mayor Francisco Heredia about negative impacts from a power plant on the surrounding area, city staff said they had worked hard on plans to get sound generated by a plant down to “the level of conversation.”
- Conversation produces sounds around 60 decibels, which according to the Noise Project, an initiative funded by the National Science Foundation, presents a low risk for hearing damage.
Regarding air quality, staff said the city would have to obtain all the relevant permits from the state to ensure they are in compliance.
She told the Tribune that she’s “open to all options for getting to cleaner and renewable sources” of energy and wouldn’t take building a gas plant “off the table.”
“I’m interested in hearing more about it, and then doing more research on it,” she said.
“I’m interested in hearing more about it, and then doing more research on it,” she said.
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