Mesa inks deal to move ahead with troubled downtown GRID project Article originally posted on AZ Central on June 10, 2025 A half-constructed project in downtown Mesa that promised to bring housing and retail has a new owner after months of bankruptcy court hearings. On June 2, the City Council unanimously approved a new ground lease with the option to purchase. The deal is with developer Soltrust Main QOZB LLC, which was selected in coordination with a U.S. bankruptcy trustee. The GRID along Main Street was a $75 million six-story mixed-use development planned by Palladium Enterprises and 3W Management LLC on city-owned land along Main Street and Pomeroy. The city initially approved it in 2017. Construction on the project was stop-and-go over the five years it was being built, in part because of the pandemic and because of financial issues. After The GRID developers failed to meet various deadlines, the city sent a letter of default in February 2024, which prompted developers to file for bankruptcy in the U.S. District Court of Arizona in March 2024. The GRID was one of the city’s first large-scale residential projects at the start of its redevelopment efforts in downtown Mesa following the opening of the light rail extension in 2015. In April, the city approved a nonbinding agreement with Soltrust to begin negotiations. Soltrust has completed 12 projects in Arizona, including the redevelopment of a 13-story assisted-living facility in downtown Mesa into an apartment building. The bankruptcy court approved the sale order on May 20, pending the council’s approval. As part of the court negotiations, all litigation associated with the project would be settled and the city would waive all claims against the bankruptcy estate. According to city documents, the monetary claims totaled about $774,000. What’s in the new plan for Mesa’s GRID project? Soltrust’s plan to finish construction will have changes, including lowering the density of the original plan. The city and developer have scrapped plans to build housing on top of the Pomeroy Garage. The project will be developed in three phases and sold as the developer commences each phase. The total purchase price for all phases will be sold at the appraised value of almost $3 million. Phase one of the project will need to be completed within nine months, according to the agreement. That is to finish the building that is facing Main Street, which will consist of 76 “micro-apartments,” 9,000 square feet of first-floor retail, 13,000 square feet of second-floor commercial space, and associated minimum public improvements. Soltrust has also entered into a lease agreement with Crust Italian Eatery to open its fourth location in the Valley with an anticipated opening date of October, according to the city. Phase two could include a lower-density townhome project, and Soltrust is currently conducting a feasibility study. Phase three would include 12 row homes and associated public improvements.