Carefree Truth

Issue #342, September 15, 2014

 

 

 

Vice Mayor Les Peterson presented an economic development overview of projects on which he, Mayor David Schwan, and Town Administrator Gary Neiss have been working.  In accordance with Arizona Open Meeting Laws, this presentation also served to share the information with fellow Council members.   Councilwoman Melissa Price, Councilman John Crane, and Councilman Mike Farrar are working together on economic development issues involving signage, and the refurbishing and redecorating of the downtown.  They will make their presentation at a future public meeting.  The items presented at this meeting looked at the Council Chamber, a potential Cultural Center which would provide attractions in the downtown, and the Ed Lewis "Easy Street" Project.  Currently, visitors to Carefree come in surges during festivals.  Both prongs of the economic development studies are aimed at generating sustainable year round traffic.

 

 

 

Option #1 is to continue leasing the Council Chamber in its current location at 100 Easy Street.  It costs $49,200 per year, which includes the adjacent empty space vacated by the Carefree Court when the consolidation with the Cave Creek Court occurred.  Ms. Price said she was told by the landlord that the Town could sublet the unused space.  Mayor Schwan replied that the landlord has told various people different stories. "Your interjection is interesting but it is not consistent with what he's told us."

 

 

 

Vice Mayor Peterson continued with option #2, which is to build a Council Chamber on Town property connected to the current Town Hall offices.  Mr. Neiss reported that the design and construction costs, depending on material, would be between 1.2 and 1.5 million dollars.  Councilman Marty Saltzman asked how large it would be.  Mr. Neiss answered, "Approximately 5000 square feet."  The Vice Mayor said it was the collective judgement of the committee that the numbers support the option of owning.  Loan payments would be revenue neutral with the lease payments, there would be no subsequent payments after the loan was finished, and the Town would have equity.  Also, as Mr. Crane had pointed out at a previous meeting, if the space where the Council Chamber and the unused space is located is leased to businesses, it would generate sales tax revenue for the Town. 

 

 

 

Ms. Price said the landlord has been trying to lease space in the building for the past 10 years.  Mr. Saltzman asked her why she thought the Town could successfully sublet the unused space it is forced to lease.  Ms. Price opined that rather than spending money to build, the Town should continue to lease the space for at least 2 years and renew the lease in 2016 for another 5 years, leasing for less per square foot than it would cost to build.  Mayor Schwan said that according to the owner his only option is to lease the entire space for the entire amount in order to pay his mortgage.  "I have to go with the man looking at me with a contract in front of me."  The Mayor, Vice Mayor, and Mr. Neiss were told the Town could not sublet, as per the contract. 

 

 

 

Mr. Farrar asked if the 2nd option included a civic center.  Mr. Neiss replied no, it would include a Council chamber/public meeting room the size of the current one, public restrooms, a storage room for Town files and archives, and a lobby.  Councilman Glenn Miller added that it would include tying the addition into the existing building at 8 Sundial Circle and some slight remodeling there.  Vice Mayor Peterson said the Town is examining its options.

 

 

 

He moved on to the Ed Lewis "Easy Street Project", saying Mr. Lewis now requires more "excitement downtown in the evenings" in order to build.  He wants Carefree to be a "destination".  Mr. Lewis and the Town met for approximately 9 months with the Phoenix Art Museum and the Heard Museum. Mr. Lewis proposed to build a 10,000 square foot building on his property to house a satellite of one or both, and sell it to the Town for his building costs of 2-2.5 million dollars.  He proposed funding this via incremental construction sale tax generated by the 80 condos, which would equate to 2-2.5 million dollars.  Mr. Saltzman asked if the Town would pay for the building and recoup the cost as the condos sold.  Vice Mayor Peterson replied that  Mr. Lewis would be paid as the Town received revenues, rather than in advance.  Mr. Farrar pointed out that there is a land component too. 

 

 

 

The Mayor halted the line of questioning by reminding everyone that the option being discussed did not come to fruition because both museums declined to participate.  Vice Mayor Peterson said the museums raised funds from the residents in Paradise Valley, Arcadia, and the Biltmore areas, not in the North Valley, and said the residents here don't support them or participate in their activities.  The Vice Mayor reminded them that downtown Phoenix is 35 miles away, and that the North Valley residents participate with and donate generously to the non profit organizations in the Desert Foothills.  But the Phoenix Art Museum and the Heard Museum both decided they want to concentrate their efforts now on their main facilities.

 

 

 

Mr. Lewis then opened talks with the ASU Museum, but it became clear that what ASU was offering to provide were science presentations and programs, not museum exhibits.  ASU, by state statute, may only invest money in their Tempe facility, so any projects outside of that must be financed via fundraising.  Payson and Lake Havasu City have ASU educational projects, but both towns have funded them in their entirety.  Should ASU elect to come to Carefree, it would be their first venture as a "museum".  They felt it would take several years to generate sufficient local awareness and to fund raise.

 

 

 

The Town and the Foothills Community Foundation (FCF) began conversations about bringing the Desert Foothills Theater (DFT) to downtown Carefree.  DFT is facility constrained in it's current location at Cactus Shadows High School, and is not  a priority tenant.  The theater and youth theater are running at capacity, and are unable to grow where they are now.  They are interested in putting on a year round "full blown schedule" which would include community and professional theater, educational classes, movies, youth camps, and musical performances.  They would present their own fare as well as contracting with outside organizations to bring a wide variety of performing arts to Carefree, and they have been in discussions with Musicfest. 

 

 

 

FCF has a 40 year track record of success in the Desert Foothills area, and has incubated a number of local non profit organizations such as DFT, Caring Corps., the Foothills Food Bank, and the Desert Foothills Land Trust.  They are well known and highly respected.  FCF and DFT are eager to move forward, pending an agreement with Carefree and final approval by their own boards.  They would stage performances in the Cultural Center and would manage the Center.  They bring a great breadth of local appeal and are prepared to move the fastest.

 

 

 

ASU could be a component of the Center presenting major presentations 12 times a year. The Town is again having conversations with the Heard Museum.  If sufficient interest is displayed, they could build towards a facility of their own.

 

 

 

The proposed Center would be a single facility housing the Council Chamber/community meeting room, with associated uses, and the Cultural Center because "there are efficiencies there".  It would be 12,000-15,000 square feet and the Cultural Center element would be build on a cost sharing basis.  The lobby could be used for museum displays.

 

 

 

The land immediately adjacent to the parking lot behind Town Hall is owned by Frank Andre.  Preliminary inquiries are underway about purchasing the now vacant lot for additional parking behind several businesses that have been impacted by lack of parking during festivals.  This is the lot behind Venues and the Wild Holly Gallery, bordering on Cave Creek Road.  Mr. Farrar declared that he is the Real Estate agent representing Mr. Andre, and as such would recuse himself should it come to a Council vote.   Mayor Schwan thanked him for the disclosure.

 

 

 

Preliminary discussions have also been held on financing options.  There is no desire to make a substantial dent in the Town reserves.  Interest rates are at a historic low, and Carefree has an outstanding credit rating.  The Town qualifies to obtain a very favorable rate on a lease/purchase loan.   The payments would equal the payments the Carefree Water Company will begin making to the Town to repay their loan beginning in 2018.  This option makes the most sense to the committee studying these aspects, comprised of Mayor Schwan, Vice Mayor Peterson, and Gary Neiss.    

 

http://vimeo.com/user18676056/review/105959223/bff2d686a8

 

 

Lyn Hitchon

 

 

 

Prepared by Carefree Truth

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