The Grid, a mixed-use project planned for downtown Mesa with an estimated cost of $75 million, started construction in February 2020. The development was set to feature 196 apartments, 75 urban flats, 15 three-story rowhomes, Class A office space, and a restaurant. However, the project encountered several delays, exacerbated by the onset of the COVID-19 pandemic, which pushed the anticipated completion of its first phase from late 2020 to an indefinite timeline.
In January 2024, construction stalled once more, prompting the city of Mesa to issue a default notice. Shortly after, on March 30, The Grid at Mesa LLC filed for bankruptcy, just a month after the city’s notice.
On July 23, a U.S. Bankruptcy Court judge appointed Keith Bierman, senior managing director of MCA Financial Group, as the Chapter 11 trustee to oversee the LLC. The trustee’s role is to stabilize the project and find a new developer to take over and resolve any outstanding debts, according to Jeff McVay, the city of Mesa’s manager of urban transformation.
”"The trustee is responsible for stabilizing the project and facilitating its completion, including identifying a new developer to purchase and finalize the project," McVay said
The exact purchase price has yet to be determined. Once a new developer is identified and a resolution is reached, it must be approved by the U.S. Bankruptcy Court for the District of Arizona.
The development agreement for The Grid, which has been amended seven times, was subject to a default notice from the city on February 29. The notice cited the developer’s failure to complete critical project elements, including road improvements and construction phases, as stated in a letter from City Manager Chris Brady.
The letter warned that if the default was not remedied by March 30, the development agreement would automatically terminate on March 31, with no further action from the city required. The agreement also allowed for the automatic termination of the developer’s lease for the city-owned site due to missed compliance deadlines.
Originally, the first floor of The Grid was set to house Crust Italian Eatery, which planned to feature an Italian restaurant, a deli, and a speakeasy cocktail lounge. McVay expressed hope that the restaurant concept could return once a new developer is secured. As the landowner, the city remains invested in seeing the project come to fruition.
”"The trustee is responsible for stabilizing the project and facilitating its completion, including identifying a new developer to purchase and finalize the project," McVay said