Phoenix/ Real Estate & Development
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Published on June 21, 2024
Mesa City Council Approves Transformative 'Berge Destination at Gateway' Mixed-Use DevelopmentSource: Google Street View

The landscape of Mesa's retail and automotive sectors is poised for significant change with the recent approval by the Mesa City Council, which gave the green light for the Berge Destination at Gateway, a transformative 120-acre mixed-use development project. As reported by ABC15, the decision was unanimous, passing three major hurdles – land rezoning, a retail tax incentive, and a resolution for a development agreement.

Diversified Partners LLC, the Scottsdale-based developer, must be anticipating the course ahead with the officials' nod now in hand. According to Levrose.com, the approval could lead to the developer receiving up to $14.4 million in reimbursements for critical infrastructure improvements. The Berge family, who owns the land and is known throughout the Valley for their auto dealerships, are looking to diversify, with the project promising a blend of auto manufacturers, and retail alongside multifamily rental units.

Plans are already set in motion with the developer targeting the end of July to commence offsite work. The city of Mesa, with an air of expectation, estimates that the completed auto mall could potentially generate up to $42.9 million in sales tax revenue from its eight dealerships by the year 2034.

Amidst these developments, Walmart has also declared its intent to open a 171,000-square-foot retail store in the vicinity, according to a Levrose.com report. To maintain a specific aesthetic and use pattern for the developing area, the project approvals come with strict limitations, such as use restrictions on the types of businesses allowed. Drive-thru locations will be limited and mini-storage facilities will be prohibited. When complete, the Berge Destination at Gateway is anticipated to be a landmark commercial hub for the region.

Phoenix-Real Estate & Development