Discussion and possible action on any and all matters regarding Resolution No. 2391.  A Resolution of the Mayor and City Council of the City of San Luis, Arizona, authorizing the submission of an FY 2026 Arizona State Parks & Trails Historic Preservation Heritage Fund grant application and approving all actions necessary to implement the proposed historic revitalization activities.  (Armando Esparza, Director of Economic Development)

Background and Project Description
On January 14, 2026, the San Luis City Council adopted Resolution No. 2389, formally approving the El Corazón de San Luis: Cultural and Economic Revitalization Plan. The Plan recommends completing an in-depth historic resource survey and property evaluation to determine eligibility for listing on local, state, and national historic registers. Eligibility requires properties to meet one or more National Register of Historic Places significance criteria and retain sufficient historic integrity. Completion of this advanced survey is a required first step to position downtown properties for preservation-based economic incentives, including Federal Historic Tax Credits (HTCs) and Arizona Historic Preservation Heritage Fund brick-and-mortar rehabilitation grants.

The Economic Development Department proposes a $90,000 project focused on historic district and site nomination activities and downtown master planning to support redevelopment in Downtown San Luis. These activities will establish the documentation necessary for preservation-based redevelopment and long-term revitalization. The required 40 percent local match totals $36,000.

Grant Strategy and Requested Authorization
The Economic Development Department intends to apply for funding through the Arizona Historic Preservation Heritage Fund, administered by Arizona State Parks & Trails. In FY26, the Legislature appropriated $1,000,000 to the Arizona Heritage Fund, with 30 percent dedicated to historic preservation. Eligible activities include historic surveys and studies, brick-and-mortar rehabilitation, archaeological interpretation, and preservation planning. Eligible applicants include cities, towns, counties, tribal governments, and nonprofit organizations. Grant awards range from $10,000 to $60,000 and require a 40 percent local match. Applications are accepted from December 1, 2025, through February 1, 2026.

The City is required to commit $36,000 local match, which will be budgeted in the Economic Development Department's FY2027 General Fund budget. To potentially offset or reimburse a portion of the City’s local match, the Department is also coordinating with Campesinos Sin Fronteras to pursue funding through the Nuestra Herencia Grant administered by Latinos in Heritage Conservation (LHC). Campesinos Sin Fronteras, a registered 501(c)(3), would serve as the City's fiscal sponsor, subject to a 10 percent fiscal sponsorship fee. The City would seek $40,000 in Nuestra Herencia funding, with $36,000 allocated to the City of San Luis and $4,000 allocated to Campesinos Sin Fronteras as the sponsor fee. If awarded, these funds would reimburse or offset the City’s locally funded match, but are not required to meet the Heritage Fund match obligation.

Grant Activities and Use of Funds
The $90,000 project will fund two coordinated historic preservation and redevelopment efforts:

• Historic Survey and National Register Nominations ($40,000): Funds will support advanced historic resource surveys, property evaluations, mapping, documentation, and preparation of district and site nominations in coordination with the Arizona State Historic Preservation Office. This work is required to establish formal eligibility for listing on local, state, and national historic registers and to position properties to access preservation-based economic incentives, including Federal Historic Tax Credits and Historic Preservation Heritage Fund rehabilitation grants. 
• Downtown Master Planning and Redevelopment Strategy ($50,000): Funds will support master planning and redevelopment activities informed by the nomination work, including conceptual site planning, redevelopment scenarios, and implementation strategies to guide adaptive reuse, private investment, and long-term downtown revitalization. Sample master planning and assessment documents are attached for reference and illustrate the scope and level of work anticipated.

The Economic Development Department requests authorization to submit a grant application to the Arizona Historic Preservation Heritage Fund and approve the allocation of $36,000 in local funds to satisfy the required match. Authorize staff to pursue supplemental grant funding, including the Nuestra Herencia Grant, to reimburse or offset the City’s local match if awarded.