Carefree Truth

Issue #349, October 26, 2014

 

 

 

Ed Lewis stated that Carefree retail is in a state of decline and rents are high.  He can't afford to build without more people on the streets; the economics are not there.  He stated that no new restaurants have opened in Carefree in the last 5-10 years.  Mayor David Schwan informed Mr. Lewis that Carefree Bistro opened this year and has been very successful.  Mr. Lewis replied that he didn't invest in that building. 

 

 

 

Vice Mayor Les Peterson agreed that Carefree needs to be revitalized, and that there are 2 opportunities currently on the table.  One is the Easy Street development, the other is the cultural attraction of Desert Foothills Theater (DFT) and/or Arizona State University (ASU).  ASU says they can't do it as quickly.  If both tried to fundraise simultaneously, both would probably fail.  The prospective plan is to proceed with DFT now, and to work with ASU to be part of DFT's project until they could be in their own facility in 3-6 years. 

 

 

 

Mr. Lewis felt the Town must choose a priority versus a secondary plan.  He asked Carefree to invest in itself, and said there must be a return on the investment.  More sales tax revenue should be the goal of economic development.  He felt his project "is not sustainable as the town is now, so count me out."  He needs help from the Town to put people on the streets, and doesn't think DFT will do that to the extent he requires.  With more sales tax, other goals would be easier to attain.  Any other money spent is lost opportunities.   He asserted that the Town ran off ASU.  Vice Mayor Peterson replied that ASU had not been run off, but just had a different schedule.  Mr. Lewis responded that ASU would not hang museum quality paintings in the DFT lobby.

 

 

 

Mayor Schwan pointed out that the meeting was getting into who said what.  "Michael Krahe was absolutely correct.  What do you propose we do to move forward?"  Mr. Lewis responded, "It doesn't have to be ASU.  I'm not wed to ASU.  I'm looking for an economic program that leads us (hesitation) pedestrians in Carefree.  It can be on my property or not on my property, but if it's the right deal, I will build Easy Street South not after you build your building but simultaneous to when you build your economic development."  Mr. Lewis said he retained a qualified consultant in California to estimate what impact the Easy Street Project would have on sales tax revenue over the next 5 years (see attachment), and wanted to know why he can't seem to get recognized as a revenue source. 

 

 

 

The Vice Mayor asked Mr. Lewis what he wanted the Town to do.  Mr. Lewis said he wanted the Town to compare what they are proposing and what he is proposing, bringing it to the people in a public meeting.  Mayor Schwan answered, "Mr. Lewis, you've dazzled us with big numbers, but fundamentally we have to start with something that is an attraction.  How do you want to start?  What attraction do you want to bring to town?"  Mr. Lewis said he had proposed an 8,000 square foot ASU facility in an email he sent to the Council on July 11th.  The Mayor replied, "Mr. Lewis, you sent me an email saying that the July 11th email was out of date and that you retracted it."  Mr. Lewis said, "That's not true."  Mayor Schwan continued, "I have the email you sent me retracting that, and saying that Desert Foothills Theater would be an appropriate attraction.  Would you like to refresh your memory?"  Mr. Lewis responded, "I, I, I'd bet, I'm telling you right now, I'm telling (hesitation).  Now who's going back to see what's happened in the past?  You can send that to me; you can put it in the newspaper; I don't care.  I never said that, I will tell you right now."

 

 

 

Vice Mayor Peterson again asked what kind of attraction it would take for Mr. Lewis to start his project.  Mr. Lewis answered that he wanted an 8,000 square foot ASU building, built at his cost, guaranteed not to exceed $2-1/2 million, that would house all 6 ASU schools, built wherever the Town desired.   Mayor Schwan asked how he would address an ASU business plan where the numbers work, sustainability, and an identified donor body.  All attractions that considered coming to Carefree agreed that those were required.  Mr. Lewis agreed that all 3 elements were required, and that ASU doesn't have the money in the budget now.  The Mayor said it's not a matter of having money in the budget; it's a matter of having a budget for this facility that works.  ASU is prevented by law from bringing any funds from Tempe to Carefree.  When they come, they have to have a business plan.  Mr. Lewis replied that they had no time to prepare a business plan for a random concept before ASU was run off by the Town. 

 

 

 

Mrs. Castro, a Carefree citizen whose husband had spoken earlier, asked for clarification.  "Are you saying that ASU's prepared to bring in the entire Herberger School of Design and Arts into Carefree?"  Mr. Lewis replied, "Oh no,  no, no", that the proposal was for an 8,000 square foot satellite facility with programing from all those schools.  Mrs. Castro pointed out that ASU can have thousands of students on it's Phoenix campus because the light rail system moves them between Tempe and Phoenix, but that there is no good way to get students from Tempe to Carefree.  Mr. Lewis answered that he was not thinking of enrolled ASU students, but more of local residents who wanted to take courses that may or may not be "for credit", something more like an art museum. Mrs. Castro thought she had heard Mr. Lewis say that ASU would be bringing the whole Herberger School up here.  Mr. Lewis said, "No, no.  I'm sorry.  I didn't mean to mislead you." 

 

 

 

Carefree resident Mary Gossell observed that when she is driving on Scottsdale Road she sees empty building after empty building, after empty building, many of which have been sitting empty for years.  While she thought all the plans sounded great on paper, and the California company provided projections, she was worried that it would become like El Pedregal.  Mr. Lewis said that's why a cultural attraction is needed, and that restaurants also provide synergy.  

 

 

 

Mayor Schwan thought there were several good opportunities and asked if Mr. Lewis agreed that all should be allowed to be successful.  Mr. Lewis agreed.  The Mayor asked if Mr. Lewis would be content to allow those people to continue working with DFT who think the theater has a good chance.  He suggested that perhaps Mr. Lewis, Councilwoman Price, and Bob Gemmill could work with ASU, and the the 2 opportunities could be brought together.  Mr. Lewis didn't think ASU would come without a unanimous Council Resolution asking them, because he thought ASU had been abused.  Mayor Schwan replied, "You and I greatly differ.  I saw a business meeting.  The last meeting that we had with them in August was cordial.  I had no sense that they felt abused.  In fact, they talked about coming up here and participating with the theater."

 

 

 

Councilman Glenn Miller said he thought time was of the essence for the Easy Street Project.  From what he heard from the Vice Mayor, ASU is 5-6 years away but DFT could come pretty quickly.  Mr. Lewis agreed that time is critical due to the fluctuating Real Estate market.  Mr. Miller figured they are looking at a 2 year project.  Mr. Lewis felt he could break ground in 2016 if there is an agreement on the concepts.  He asserted ASU would be ready, and agreed with the Mayor that it must be sustainable and have funds committed.  He pointed out that other non profits raise that kind of money.  Mayor Schwan joked, "So, we're violently agreeing that the 3 business principles need to be in place before anything can happen."  Mr. Lewis said, "Yeah, with Desert Foothills Theater, or anything using taxpayer money."  The Mayor felt there were many good opportunities worth exploring. 

 

 

 

Mr. Lewis didn't feel that everything should have the same opportunity for success unless they could reach the stated return on investment.  Mayor Schwan replied, "I'm being fair to you, saying 'Go for it; make it all happen; bring us a plan.' "  Mr. Lewis said he couldn't do it without cooperation from the Town.  The Mayor asked what he needed.  Mr. Lewis said, "I need a Council Resolution unanimously asking them to come back and that we'll consider a facility and give them a fair chance."  The Mayor asked if Mr. Lewis would draft a Resolution, to which Mr. Lewis agreed.  He added that he thought having people living in the downtown had not been recognized as an additional benefit, that not all opportunities are created equal, and that his project was better than the others.

 

http://vimeo.com/user18676056/review/108757973/2e437221a3

 

 

 

Lyn Hitchon

 

 

 

Prepared by Carefree Truth

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