Mesa, Arizona, December 17, 2025
The former Fiesta Mall site in Mesa, Arizona, is set for revitalization as the Palo District, an innovative health campus and mixed-use community. This 80-acre project will integrate residential, commercial, and green spaces, showcasing the resilience of Arizona entrepreneurs. With a focus on healthcare and education, the development aims to create jobs and address the region’s housing shortage, marking a significant step forward for the local economy and community.
Phoenix: Palo District to Transform Former Fiesta Mall Site into Vibrant Health Campus and Mixed-Use Hub
A new chapter is beginning for a significant Phoenix AZ business landscape, as the long-vacant Fiesta Mall site is poised for a major revitalization. Rebranded as the Palo District, this ambitious development signals a commitment to entrepreneurial innovation and strategic private investment, aiming to transform a once-bustling retail center into a dynamic health campus and mixed-use community. This project underscores the resilience of Arizona AZ entrepreneurs and the potential for thoughtful development to foster significant economic growth and community enrichment.
The transformation of the 80-acre property, situated at Southern Avenue and Alma School Road in Mesa, represents a pivotal moment for the region. What was once an iconic shopping destination, and later a vacant space, is now envisioned to become a hub for healthcare, education, retail, and residential living. Such private sector initiatives are crucial for urban renewal, demonstrating how innovative approaches can breathe new life into underutilized areas, generate employment, and create vibrant new communities for residents and businesses alike.
From Retail Hub to Health Horizon
The former Fiesta Mall site, which saw its last store close by 2019 and demolition begin in July 2023, is being reimagined by Verde Investments, owned by Valley businessman Ernest Garcia II. The development team has been working since 2015 to acquire the entire property, which was previously under five different landlords, consolidating it for a unified vision. The project, initially referred to as “Fiesta Redefined,” has recently been approved for a zoning change by the Mesa City Council, shifting its designation from commercial to an infill development district. This new zoning provides greater flexibility for the developers to build out the diverse components of the project.
Central to the Palo District’s plan is the development of a health campus, alongside a broader mixed-use community. Early plans for the “Campus” concept, dating back to 2017, already highlighted a focus on health and education, including medical learning centers and colleges specializing in various fields. This strategic direction aligns with the growing healthcare sector in the Phoenix metropolitan area, which is attracting life sciences and medical device startups and contributing to job creation. Such facilities are known to drive development by creating construction jobs and subsequently increasing employment through staffing needs, beyond providing vital services to the community.
A Blueprint for Mixed-Use Vibrancy
The vision for Palo District, also known as Fiesta Redefined, includes up to 4,000 residential units and up to 1.1 million square feet of non-residential development. This non-residential space is planned to encompass offices, high-end retail, restaurants, and public gathering spaces. A “village green” open space, covering one acre in the middle of the development, is also a key feature, designed to include benches, shade structures, picnic areas, event lawns, and pedestrian pathways.
The development is designed to be “open and airy,” emphasizing walkability and pedestrian-friendly access. It is expected to transform the area into a blended community, integrating urban living with public spaces. This comprehensive approach to urban planning, combining residential, commercial, and green spaces, can lead to sustainable community insights and revitalization, making the area more appealing for residents and encouraging further private investment. The project could also potentially include a multiuse soccer stadium and other large-scale entertainment venues, as the Mesa City Council has approved a theme park district for the site.
Economic Momentum and Job Creation
The development of the Palo District is anticipated to be a significant economic driver for Mesa and the broader Phoenix region. Large-scale projects, particularly those involving healthcare and education, have a history of generating substantial economic impact. For instance, the University of Arizona’s downtown Phoenix academic medical center had an economic impact of nearly $1.3 billion in 2013, creating 9,355 direct and indirect jobs, and is estimated to reach $3.1 billion by fiscal year 2024-25. More broadly, the partnership between Banner Health and the University of Arizona has delivered an estimated $59 billion in total economic impact to the state of Arizona over 10 years, encompassing over 35,500 annual direct and indirect jobs and billions in tax revenue.
This new development is expected to boost Mesa’s economy, create jobs, and help address the Valley’s housing shortage, attracting developers, employers, and national brands. Such private investment in redevelopment encourages economic activity and often leads to the stabilization and growth of local businesses and organizations. The emphasis on a flexible infill development district could also streamline the review process for the project, allowing for a more agile response to market demands and potentially accelerating construction timelines.
Fostering a Resilient Phoenix Economy
The transformation of the Fiesta Mall into the Palo District exemplifies the spirit of enterprise that characterizes Phoenix small business and the broader regional economy. It showcases how private developers, driven by vision and capital, can undertake complex redevelopment projects that benefit the entire community. By converting a long-vacant site into a productive, multi-faceted asset, the Palo District stands to stimulate a wide range of new entrepreneurial ventures, from healthcare services and educational institutions to retail establishments and residential offerings. This kind of thoughtful urban expansion and private investment contributes to a robust and diverse local economy, enhancing quality of life and creating lasting value for residents.
Looking Ahead: A Catalyst for Community Prosperity
The Palo District project is a testament to the ongoing revitalization efforts within the Phoenix metropolitan area, particularly in Mesa. With its focus on a health campus, diverse housing options, and commercial spaces, it is set to become a catalyst for further economic growth and community development. The phased buildout of the site, which could take up to a decade, promises a steady stream of job opportunities and new amenities. As this significant undertaking unfolds, it will be a key indicator of how private initiative can drive comprehensive urban renewal, fostering innovation and contributing to a thriving future for Phoenix and its surrounding communities. We encourage our readers to stay engaged and support the new businesses and opportunities that will emerge from this exciting redevelopment.
Frequently Asked Questions About the Palo District Redevelopment
- What is the Palo District?
- The Palo District is the new name for the redeveloped former Fiesta Mall site in Mesa, Arizona, envisioned as a vibrant health campus and mixed-use community.
- Where is the Palo District located?
- The Palo District is located on the 80-acre site of the former Fiesta Mall, at Southern Avenue and Alma School Road in Mesa, Arizona.
- Who is the developer behind the Palo District?
- The redevelopment is being led by Verde Investments, owned by Valley businessman Ernest Garcia II.
- What are the key components planned for the Palo District?
- The plans include a health campus, up to 4,000 residential units, up to 1.1 million square feet of non-residential development (including offices, high-end retail, restaurants), and public open spaces like a “village green.”
- What is the expected timeline for the Palo District development?
- The buildout of the entire site could take up to a decade to complete.
- What is the potential economic impact of the Palo District?
- The development is expected to significantly boost Mesa’s economy, create jobs, and help address the Valley’s housing shortage by attracting developers, employers, and national brands.
- Has the project received necessary approvals?
- Yes, the Mesa City Council has approved a rezoning application for the site, changing its designation from commercial to an infill development district, providing greater flexibility for the development.
Key Features of the Palo District Redevelopment
| Feature | Description |
|---|---|
| Project Name | Palo District (rebrand for former Fiesta Mall, also known as Fiesta Redefined) |
| Location | 80-acre site at Southern Avenue and Alma School Road, Mesa, Arizona |
| Developer | Verde Investments, owned by Ernest Garcia II |
| Primary Focus | Health campus (medical learning centers, colleges specializing in health and education) |
| Residential Units | Up to 4,000 new housing units |
| Non-Residential Space | Up to 1.1 million square feet of offices, high-end retail, restaurants, and public spaces |
| Green Space | “Village green” open space with benches, shade structures, picnic areas, event lawns, and pedestrian pathways |
| Zoning | Approved for rezoning from commercial to an infill development district by Mesa City Council |
| Economic Impact | Expected to boost Mesa’s economy, create jobs, and address housing shortages |
| Development Timeline | Buildout could take up to a decade to complete |
| Additional Potential Uses | Multiuse soccer stadium and theme park entertainment district |
Deeper Dive: News & Info About This Topic
HERE Resources
Author: STAFF HERE PHOENIX WRITER
The PHOENIX STAFF WRITER represents the experienced team at HEREPhoenix.com, your go-to source for actionable local news and information in Phoenix, Maricopa County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as the Waste Management Phoenix Open, Cactus League Spring Training, and Arizona State Fair. Our coverage extends to key organizations like the Greater Phoenix Chamber of Commerce and Visit Phoenix, plus leading businesses in technology and healthcare that power the local economy such as Intel and Banner Health. As part of the broader HERE network, including HERETucson.com, we provide comprehensive, credible insights into Arizona's dynamic landscape.
