Carefree Truth

Issue #348, October 24, 2014

 

 

Councilwoman Melissa Price commented that she thought Arizona State University (ASU) had been blindsided and told that the decision had been made to bring Desert Foothills Theater (DFT) into downtown Carefree.  Mayor David Schwan asked her if she had spoken with Gordon Knox, the designated outreach representative from ASU.  She replied, "No, I inferred it from an email."  Mayor Schwan said the problem is that too many emails with too many agendas have been circulating. 

 

 

 

ASU was brought in by Ed Lewis.  Concurrently, DFT approached the Town, appearing at a Council meeting with a well organized presentation.  Talks with DFT are in the early stages, with no decision made yet by either the Town or DFT.  Mayor Schwan thought it was sensible for ASU, DFT, Mr. Lewis, and the Town representatives (Gary Neiss, Vice Mayor Les Peterson, and Mayor Schwan) to meet so everyone knew what was being proposed by the various entities.  Mayor Schwan did not have the impression that ASU was offended by his attempt to keep the conversation businesslike and practical.  The theater came to the Town with a business plan, sustainability figures, and an existing donor base, and he asked that ASU focus on the business issues.  

 

 

 

The last meeting with ASU was at the end of August.  The Mayor referred to it as "cordial and businesslike".  Problems were identified and everyone agreed that ASU must develop a viable business plan, be long term sustainable, and raise funds.  Gordon Knox, the designated outreach ASU representative, was asked if ASU wanted to make a presentation at the September Council meeting.  Mr. Knox felt that it would be at least 2-1/2 years before they could have a presentation ready after realizing the business challenges involved. 

 

 

 

Ms. Price said the issue of sustainability was avoided in the DFT presentation.  Mayor Schwan explained that DFT had invited Mr. Neiss, Vice Mayor Peterson, and him to a preliminary meeting.  Their internal documents showed a spreadsheet with anticipated sustainability, how they would build their audience going forward, and their donor program.  Because their numbers were preliminary and internal, they were not presented at the Council meeting.  The Mayor told Ms. Price, "I agree with you that we are at the beginning of this process."  He felt that everyone must be given the opportunity to succeed, saying some in the room think DFT will fail, and asked,  "Why don't you be as fair to the theater as I'm being to ASU?  Give them an opportunity to build a plan, come back in several months, and see if they can be successful."

 

 

 

Carefree resident Jeff Kerner asked, "Is DFT is the cultural draw and attraction that's needed to revitalize the town center and the economy of Carefree?"  He felt that the economic core, the town center, and the businesses are in extreme distress, and that nobody walks through town.  He didn't believe that DFT would attract upscale people from a larger radius.  Vice Mayor Peterson replied that the Carefree Christmas Festival and the various art festivals in Carefree draw, in total, approximately 100,000 people during the course of a year.  DFT estimated it would draw 20,000 to 30,000 people annually, greater than the Phoenix Art Museum had estimated.  The DFT numbers were based on actual experience at their current location.

 

 

 

Mr. Kerner continued that ex Mayor Ed Morgan felt the Butte project would get people living downtown and promote action in the downtown; then everything else would work.  Ed Lewis is willing to invest.  The Town should be bending over backwards to get the project built.  Mayor Schwan replied that Mr. Lewis has stated that before he can get financing, Carefree must have an artistic attraction. 

 

 

 

Mr. Lewis disagreed, saying Mr. Neiss' timeline was correct, and that shared parking and the development agreement were close to resolution.  Five issues proposed by the Town, which he found unacceptable, had yet to be resolved.  The 2015 start date had been lost, so the time pressure was gone.  He was waiting for the report by the consultants and for the cultural draw.  He asserted that the merchants and the landlords feel the need for more foot traffic, and the problem is that there is no drive by traffic.  Mr. Lewis "hoped that everyone can stay unemotional and reason together, so we can all succeed."   Vice Mayor Peterson agreed that Butte Properties and the Town are not far apart at this point.  No one has control over the economy, and the objectives of building as much traffic in the downtown as quickly as possible are mutual.  

 

 

 

Mr. Lewis said he brought in the Phoenix Art Museum (PAM), and that he and Mayor Schwan worked well together on the project, agreeing that they wanted a draw to improve property values throughout the community, and that the Town would fund and own a building that the draw could use rent free.  PAM would bring rotating exhibits and would raise contributions, since there was nothing in their budget for a Carefree satellite facility.  All agreed that a long term operating commitment was required.  An annual maintenance cost of $700,000 to $800,000 was estimated, and Mr. Lewis told them he would help raise contributions and pledges.  The Mayor agreed to the plan, but the PAM Board of Trustees voted no, preferring to keep their resources and focus on their main facility in Phoenix.  They were not interested in trying to tap the wealth in the North Valley.

 

 

 

Mr. Lewis wants to bring culture and art here because people attract people, so he next approached ASU.  He said ASU, as opposed to PAM) wants to interact with people where they are, and has multiple campuses.  The Arts colleges are not involved on any of the other campuses; all are at the main Tempe campus.  Mr. Lewis said they expressed interest in including the whole school of art, six schools.  The Town asked for proposed programing, which was unknown, as it was a new idea.  He said there was a mixed reaction from the Town leadership, and that some were cautious, which was probably a wise approach. 

 

 

 

A meeting was scheduled to discuss a collaboration between DFT and ASU.   An architect member of DFT voluntarily drew a preliminary plan to show one possibility, should the project progress beyond the talking phase, and brought it to the meeting to show as part of DFT's presentation.   Because of this, Mr. Lewis felt that Mayor Schwan was committed to building a new council chambers that would include space for DFT.  He only saw a place in the plan for ASU to hang some artwork in the lobby, and said this offended both him and ASU.   

 

 

 

Mr. Lewis said he hated to assault in any way what he feels is "really good Town leadership", but repeated that he felt the Town was committed to DFT.  Although he thinks DFT is one of the best local theaters he's ever heard of, he was concerned that it does not meet the criteria for traffic generation.  He is not opposed to a non profit or to a theater, but wants the best option to bring energy into town.  He added that what ASU needs to raise to operate in Carefree is less than Holly raises for her animal shelter, and much less than the $20 million dollar endowments required by the Heard and PAM, which were not feasible.   Mr. Lewis said that, led by ASU, he would help get pledges for the next 5 years to cover ASU's maintenance and operating expenses.  He confirmed that ASU cannot contribute towards construction of the building.  There is no money for that.  Vice Mayor Peterson reminded Mr. Lewis that ASU said they would have to change their Strategic Plan before anything could proceed, a 2 to 2-1/2 year process.  Mr. Lewis replied that he was not at that meeting.

 

 

 

Carefree resident Bert Castro, who is with the Foothills Community Foundation (FCF), also runs one of the largest non profit organizations in Arizona, the Phoenix Zoo.  The zoo staged a capital campaign over the last 5 years that raised around $35 million dollars.  But, he said, you're fooling yourself if you think you can raise money for operations.  He's been in fundraising for many many years, and has raised a lot of money for capital projects, but asserted that the public will not fund operating expenses.  Mr. Lewis disagreed.

 

 

 

Carefree resident Phil Corso asked for a show of hands from people in the audience who were 50 years old or older.  Most hands were raised.  He then asked how many were interested in living for a long time.  Again, hands were raised.   He asked Mr. Lewis at what age demographic the condos were aimed.  Over 50?  Mr. Lewis confirmed that.  Mr. Corso felt that looking to a cultural attraction to bring people into Carefree to buy condos would not be effective.  He said that would require a lot of money from the local government, a lot of private donations, and a lot of time, and that wellness is the biggest single concern of the Baby Boomer generation.  He suggested a Wellness Center instead, pointing out that health care professionals pay rent.  "Think outside of your box, Ed."  Mr. Lewis responded, "I can see you don't want to hear the rest of my presentation." 

 

 

 

Carefree resident and business owner Michael Krahe said that he'd been part of the revitalization project "since way back".  "I can only speak from what I observe and what I hear. There's a lot of that I don't know; there's a lot of that I do know.  What I know is that there's a lot of lousy information that's been generated.  We're sitting in here today rehashing conversations that have happened in the past.  I said this.  No you didn't.  You said that.  We have a lot of really great opportunities.  We've got this guy (pointing towards Ed Lewis).

We've got Desert Foothills Theater.  We've got a few other things that are out there.  ASU.  OK, fine.  Our hands are hamstrung, as I understand it, by Open Meeting laws.  OK, so the process that came forward was hobbled by those meeting laws.  So what happens when people can't talk?  Exactly what we're seeing now.  And now we have everybody up in arms.  This information, that information, pick whatever you want.  But we're here today with good ideas, good people, and good projects.  My challenge is, how do we go forward, what is the plan to go forward, and then what is the transparency, which has been lacking for good reason, that's generated all this hoopla, and how do we keep everybody on the same page so that people understand we're moving this way, here are the options that are being developed, and here's there rationale why.  We don't have that now.  That's what this town needs.  Going forward.  We could sit here all night chatting.  All night long.  It doesn't matter.  He's got a great project, for all kinds of reasons.  Desert Foothill Theater has all kinds of great reasons to be here.  ASU has all kinds of great reasons to be here.  Let's quit screwing around with the past and let's let these people tell us where the hell we're going to go, so we're all informed about what the options are, what's best for this town.  That's my view."

 

 

 

Ed Lewis said the two big hurdles are the development agreement, which includes parking, and that he and  the Town are substantially together now on those.  Mr. Neiss interjected that the only real hurdle had been parking.  Councilman Glenn Miller asked what new demands Carefree had made that were referenced by Mr. Lewis earlier.  Mayor Schwan answered that they were the ones discussed in executive session, which satisfied Mr. Miller's question.  Mr. Lewis said they were not "deal breakers" in the development agreement, and directed the conversation back to cultural attractions.  DFT and ASU are both on the table, and he'd like to see both participate.  "Let's make it work right now."  Mr. Neiss asked Mr. Lewis what he did and didn't want in his facility, and if he needed something in his facility.  Mr. Lewis answered, "No."  

 

 

 

He said he had originally proposed building a space for PAM simultaneously with building Easy Street South, the first half of his retail/condo project.  Mr. Lewis would charge only his construction costs for the building to house PAM, and the Town would buy the building.  Carefree could use sales tax revenue generated by retail and condo sales towards that expenditure, until they eventually owned the museum building.  Mr. Lewis said it is still his proposal, open to any attraction he feels would generate significant traffic.  He added that his project would bring 15-20 new businesses into Carefree. 

 

 

 

Mr. Lewis said his needs are the same thing as those of the merchants and landlords, revitalization of the downtown.  What we're missing is people.  He reiterated that there is no drive by traffic and not enough pedestrian traffic.  He didn't want to be like El Pedregal, and said the solution is to get people into the downtown day and night, January through July.  Carefree needs things to do and see, to be a "people place".  He didn't believe a new council chamber would do anything to solve that problem.  

 

 

 

Mayor Schwan explained that building a council chamber is simply an economic decision.  He asked how many in the audience rented their homes, vs. owning their homes with or without a mortgage.  Most raised their hands.  He explained that currently the Town of Carefree pays $50,000 a year in rent for the council chamber.  There is an opportunity to change that $50,000 a year paid in rent into a $50,000 a year mortgage payment.  The Town will eventually own the space and can stop paying rent to someone else.  Carefree wants the equivalent of home ownership.  There is enough money in the bank to pay cash, but then that money would not be available for other things.  The council chambers is home to the Town, and Carefree is not going away.  The Town should do what is economically feasible, to own the facility and stop paying rent.

 

http://vimeo.com/user18676056/review/108740770/4e3dfbabe8

 

 

Lyn Hitchon

 

 

 

Prepared by Carefree Truth

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