CAREFREE TRUTH
Carefree Truth #322
Carefree Truth
Issue #322, May 12, 2014
Mayor David Schwan introduced Ed Lewis, CEO of Butte Companies, and his assistant, daughter Kirsten Brown. Mr. Lewis began his presentation by saying that he built "The Landmark" condominiums in Kierland Commons (see the slide), adding that many in the north Valley like a "lock it and leave it" lifestyle, with no maintenance and highly secured homes. Condos of this sort allow them to downsize from their big homes while remaining in the area where their friends and churches are located, and to travel worry free.
Mr. Lewis had obtained the permits and was ready to begin the Easy Street Project in the fall of 2007 when the housing market crash and the financial crisis appeared on the horizon.
He feels the market is once again improving, and prefers to develop on the up tick, rather than at the peak or the down tick.
He went on to say that Carefree has a charming infrastructure layout, with a pedestrian friendly environment featuring the Gardens, fountains, and wonderful little shops and restaurants. It's a real village with a Town Hall and a Post Office.
An aerial slide of the downtown (see the video for all the slides) showed Mr. Lewis' properties outlined in yellow. His goal is to begin construction of the South Parcel in early January. The plan has flexibility for phasing and for a variety of uses. The next slide contained an elevation drawing. In a use consistent with the zoning in place on the property, the street level would house restaurants and shops, while the second and third level would consist of luxury condominiums ranging from 1500 to 3200 square feet. Several slides showed the layout of the retail and residential units. The second story included a clubhouse, a year round heated pool and spa on a large sundeck, and a fitness center with a steamroom. These amenities would be for the exclusive use of residents and their guests. Addition parking would be placed behind and underneath the building.
Mr. Lewis explained that he and the Mayor had worked with the Phoenix Art Museum to include a satellite as part of the project, but the Board of Trustees decided to concentrate their efforts and funds on the downtown campus. He expressed disappointment at this decision, and still wants the Town to create and fund a significant cultural "draw or attraction" before he begins construction. He also seeks a modification in the parking code to accommodate mixed use, citing the model used by Phoenix and Scottsdale.
He stated this project would generate construction tax as well as continuing sales tax revenue for the Town, as new residents in the downtown would create foot traffic to support the local businesses, while it also added new businesses. Because it is located in the center of the commercial district and does not abut any residential neighborhoods, they would not be adversely effected. His company would perform an extensive advertising campaign, which would benefit Carefree. Mr. Lewis felt all this would increase property values throughout the town. He added that the project has seen good support from the merchants and the residents, and that the Mayor and Vice Mayor are "with him" in seeking a cultural amenity.
However, he said timing is critical, as he does want to develop during the housing up swing. He anticipates 18 months of construction for Phase I, opening in the fall of 2016 as the snowbirds and tourists are returning to the Valley. Mr. Lewis warned that while the market is slowly improving, development is more difficult than it was in 2006/7, with increased lending regulations on banks. He must now obtain pre-sales commitments in order to satisfy lenders. While financing is more difficult, he felt confident about proceeding if a cultural attraction can be obtained and the parking issues are resolved.
Mayor Schwan thanked him for presenting his project to the Council, then asked if any Council members had questions. Councilman Glenn Miller asked Mr. Lewis if he would start Phase II after Phase I was occupied. Mr. Lewis replied that if he could fill Phase I at prices that would net a profit he would begin Phase II, as there is no return on vacant land. Mr. Miller next asked if Mr. Lewis had a retail following from his project in Kierland that would come to Carefree. Mr. Lewis said he was not responsible for the retail element there, adding that the Kierland retailers are mostly large national chains which require large spaces. Unique boutique type shops and smaller restaurants are appropriate for Carefree. Councilman Mike Farrar commented that as a commercial broker he is excited. He felt that intrinsic changes are needed to entice more retailers to take a risk.
Mayor Schwan invited those in the audience who had filled out speaker slips to come forward, starting with Bob Gemmill. Mr. Gemmill stated that he has been a supporter of this project since it's inception, and thanked the Mayor, Vice Mayor, and Council for putting the item on the agenda. He felt strongly that although the Town is working on numerous economic development projects, Mr. Lewis' would have the greatest impact, and would be very positive for the town. Mr. Gemmill also thanked the merchants who took the time to attend the Council meeting to show solidarity and support for the project, and pointed out that someone wants to invest a total of $90 million dollars in the town.
The next speaker was Harry Vardakis, who has lived in Carefree for over 40 years. He has developed many properties in Carefree and still owns several properties in town. Mr. Vardakis stated that the Lewis project would bring an injection to Carefree. He said let's work together and get it done. Councilman Farrar added, "When Harry says something, it really brings it home to many."
Vice Mayor Peterson said that he and Mayor Schwan have been working with Mr. Lewis over the last year, and the Town is prepared to cooperate on what's reasonable. Finding an attraction is the focus and priority. The rest can be resolved. "Let's get it done." Mayor Schwan thanked Mr. Lewis and Mrs. Brown for coming to the meeting and for delivering an excellent presentation.
Lyn Hitchon
Prepared by Carefree Truth
Visit our website at www.carefreetruth.com
If you know anyone who would like to be added to the Carefree Truth email list please contact me, and feel free to share Carefree Truth with others on your list. See what businesses and services Carefree has to offer http://www.carefree-az-businesses-experiencethedifference.com/CAREFREE,_AZ_BUSINESSES%3A_EXPERIENCE_THE_DIFFERENCE/CAREFREE_BUSINESS_CATEGORIES.html at Please support our merchants. Visit our Carefree Desert Gardens website at http://www.carefree-desert-gardens.com/Carefree_Desert_Gardens/Welcome.html
