Scottsdale-based Sunny Day Sports wants to turn the long-dead Fiesta Mall property in Mesa into a $2.5 billion sports and entertainment district anchored by a 25,000-seat stadium for women’s professional soccer — and possibly men’s soccer too. The Mesa City Council unanimously approved the legal framework for that project on November 26, 2025. But the site is still dirt, no franchise has signed on, and neighbors say they’re being kept in the dark.
If you live near Southern and Alma School, here’s what changes — and when
Right now, nothing changes on your commute. The 80-acre site at Southern Avenue and Alma School Road sits cleared and empty. Demolition of the old mall began in 2023, but no construction equipment has arrived for what comes next.
If the Palo District gets built as described, your corner of Mesa would gain two hotels, a women’s health campus, restaurants, retail, and a professional soccer stadium. That kind of year-round activity typically lifts nearby home values and brings new jobs. Mesa’s mayor has said the project fits a broader citywide vision.
But “if” is doing a lot of work in that sentence. No team has committed to play there. No construction schedule has been released. The financing plan has not been made public. Until a franchise signs and shovels go in, game-day traffic, crowd noise, and parking pressure on your street remain entirely speculative.
There’s also a trust issue. Some neighbors say communication from project leadership has slowed significantly compared to six months ago. And the district’s own chairman acknowledged an Arizona Open Meeting Law violation in late July — more on that below.
The former Fiesta Mall pylon sign still stands over a vast cleared lot at Southern Avenue and Alma School Road. The mall building closed in January 2018; the last tenant, a Dillard’s Clearance Center, departed in 2019. Demolition of remaining structures began in 2023. (Photo credit: as provided)
What is the Palo District, and who is behind it?
The Palo District is a proposed $2.5 billion redevelopment of the 80-acre former Fiesta Mall site. Sunny Day Sports, a Scottsdale-based group, is leading the effort. Its chairwoman, co-founder, and principal owner is Vicki Mayo.
The land itself belongs to Verde Investments, a real estate company run by Ernest Garcia II. Garcia is Arizona’s wealthiest person, with an estimated net worth of $23.1 billion. He built that fortune as founder of DriveTime, a used-car retailer, and as the largest shareholder in Carvana, the online vehicle platform. Once Verde Investments sells the land to the development group, Garcia will have no further role in the project.
About the site: Fiesta Mall’s main building closed in January 2018. A Dillard’s Clearance Center stayed open as the final tenant until late 2019, leaving the property fully vacant. Demolition began in 2023.
Demolition crews tear down what remained of Fiesta Mall in 2023. The site’s distinctive palm-tree-shaped columns were among the last structures to come down. (Photo credit: as provided)
What the city council actually approved: bonds, a sales tax, and a new legal district
On November 26, 2025 — the day before Thanksgiving, at 10:01 a.m. — the Mesa City Council held a special session that lasted 12 minutes. No residents were in attendance. The council voted unanimously to form the Palo Theme Park District.
That vote created a separate legal entity with real financial power. The Palo District board can issue project-backed bonds to raise construction money. It can also levy a transaction privilege tax — essentially a sales tax — on business activity within the district’s boundaries. Those two tools are how large entertainment districts typically finance themselves without direct city spending.
The city of Mesa is not on the hook for construction costs under this structure. The district raises its own money through bonds and its own tax base. Councilmembers Heredia and Adams were elected to the Palo District Board of Directors at that same November session.
The board has exactly four members under Arizona statute. Chris Glover serves as chairman. Arizona House Speaker Steve Montenegro appointed Glover to the board as his representative.
MLS, NWSL, and the franchise question no one has answered yet
The stadium was originally conceived for a National Women’s Soccer League team. Developers have since expanded that vision to potentially include a Major League Soccer franchise as well — meaning a men’s team could share the 25,000-seat venue.
Mayor Mark Freeman has been direct about Mesa’s ambitions. He called the Phoenix metro “a great place for it” and said the city is “able and willing to court” both MLS and NWSL. He went further in a post-vote statement: “MLS, women’s soccer… and there could be other sports venues as well.”
But the central question remains open: would Mesa land a relocated franchise or a new expansion team? Nobody has said. Neither MLS nor NWSL has announced any plans tied to this site.
One team that is definitely not involved: Phoenix Rising FC, the existing USL club. The club confirmed it has no role in the Palo District effort. Its founding owner said the club envisions its permanent stadium being built within the city of Phoenix, not Mesa.
A Sunny Day Sports rendering shows the L-shaped building complex proposed for the Palo District site, with what appears to be stadium seating visible at lower right. (Rendering: Sunny Day Sports)
The stadium, two hotels, and the women’s health campus
The centerpiece is a 25,000-seat stadium built for women’s professional soccer. Sunny Day Sports has also announced two hotels for the site: a 400-room modern lifestyle property and a 200-room extended-stay concept, totaling about 600 rooms combined.
The development also includes a planned $100 million women’s health campus. That campus would cover four areas: care, research, wellness, and athletic performance for female athletes. No construction timeline for any of these components has been released publicly.
A rendering of one of the two proposed Palo District hotels. Sunny Day Sports plans a 400-room lifestyle hotel and a 200-room extended-stay property — roughly 600 rooms total. (Rendering: Sunny Day Sports)
The Open Meeting Law violation and the neighbor communication gap
Project chairman Chris Glover acknowledged a violation of Arizona Open Meeting Law regulations in late July. He characterized it as a clerical scheduling error. The acknowledgment came after some neighbors said they had noticed a drop in communication from the Palo District team compared to six months earlier.
Open Meeting Law in Arizona requires public bodies to give proper public notice before meeting. A failure to do so — even if accidental — can undermine community trust in a project that depends on neighborhood support. No further action from the state has been reported in connection with the violation.
Franchise announcement: the milestone that starts the clock
The Palo District now has its legal structure. The land sale from Verde Investments to Sunny Day Sports has not been publicly confirmed as complete. The site has no active construction. Developers have not released a full financing breakdown.
The single event that would make everything else concrete is a confirmed team announcement — either an MLS expansion grant or an NWSL franchise commitment. Until that happens, the bond market, the construction schedule, and the real-world impact on nearby streets and home values all stay hypothetical.
Mesa residents who want to follow this project can track Palo District board meeting notices through the city’s public meeting calendar. Given the acknowledged Open Meeting Law issue, those notices are worth watching. For nearby homeowners curious about how large entertainment developments tend to affect property values in the East Valley, our coverage of Mesa’s Legacy Park $3 billion development offers a useful comparison, as does our look at the VAI Resort in Glendale and what that project meant for that corridor. For context on how Mesa is handling hotel development more broadly, see our Mesa Gateway Airport hotel and restaurant update.
