Carefree Truth

Issue #370, January 23, 2015

 

 

 

During his wrap up, Ed Lewis spoke of a revitalization vision and how a cultural center is the way to accomplish it, resulting in upgraded branding for the town.  New businesses would be attracted due to increased pedestrian traffic, generating increases in sales tax revenue and property values.  He said it would be a substantial partnership between "the giant of ASU" and the small town of Carefree.  Mr. Lewis added that he now needs support from the Council, and feedback from the residents and the public about programming priorities.  He will refine the building plans to generate a cost estimate, and is looking for volunteers to help with a capital campaign this spring to raise pledges of $2.5 million.

 

 

 

Mayor David Schwan thanked Mr. Lewis and the representatives from Arizona State University (ASU) for coming up to Carefree, and for their excellent presentations.

Councilman Mike Farrar asked if the 2-3 year time frame discussed during the August meeting at ASU would now be accelerated.  Dr. Gordon Knox acknowledged that it had been moved forward, and that they are trying to assess the feasibility as quickly as possible.  If fundraising targets are met, they could begin discussing details by July.  But he believed it would probably require two years by the time the building is built anyway, no matter who occupies it.  ASU is eager to test the waters this spring.

 

 

 

Mr. Farrar shared that he graduated from ASU with a Fine Arts degree.  Desert Foothills Theater (DFT) was also at the August meeting at ASU, and there was a conversation about joint programming.  "Do you still see it moving forward that way?" Dr. Knox answered, "Absolutely."  If viable, a lot would happen with the participation of the citizens of Carefree, and ASU would certainly welcome conversations with all of the cultural institutions operating here to see how they can partner and create synergy.  "Yes, we like to play nice!"

 

 

 

Vice Mayor Les Peterson began by saying that he too is an ASU graduate, and is also a guest lecturer at the University for which he harbors the warmest of feelings.  He asked about the percentage of utilization the building would receive from ASU.  He said the Council now needs resident input to see if they would utilize the cultural center.   Mr. Lewis said it has strong merchant support, and that his project was estimated by his consultant in California to generate $7 million in sales tax revenue over a 20 year period, a significant increase over the current collections.  He now needs to do his due diligence to find out how many restaurants and what kinds of shops would be desired.  It has to make sense for the Town and for ASU.  Mr. Lewis felt that perhaps the combined strengths of ASU and DFT would be better than either separately, and would help to maximize the facility's utilization.  He loves the idea of ASU, which would bring excitement, branding, and culture.  Dr. Knox agreed.  The Vice Mayor said he would love to work through the numbers together.

 

 

 

Councilman John Crane thanked Councilwoman Melissa Price and ex Councilman Bob Gemmill for putting this together.  He was onboard, and said if ASU is looking for something more concrete, they should let the Town know.  He was impressed by the presentation of what ASU brings, calling it "very exciting", and he thanked ASU for sharing it with the Council and the audience.  Ms. Price asked for a show of hands of Carefree merchants, then for a show of hands of residents.  Many hands were raised each time.  She thanked everyone for attending.  Councilman Glenn Miller said it was a great presentation, and that he was onboard.  Mr. Farrar said he is thrilled by ASU's interest in our community.  Vice Mayor Peterson agreed.

 

 

 

Mayor Schwan reminded everyone that there is a workshop on January 27th to further discuss the concept of a cultural center in Carefree, and that it is open to the public.  He said he'd been involved in this process since March of 2013 with Mr. Lewis.  The rest of the Council joined the discussions in early 2014.  In order to expedite the workshop, he asked Mr. Lewis and ASU to look at the capital costs of construction.  ASU is looking at 5 years of sustainability, whereas the Phoenix Art Museum and the Heard Museum were looking at 10 years.   ASU presented a wide range at downtown sites, but the Mayor wanted to better understand the programming that would be brought into Carefree.  If the activities and functions are predetermined, a better job can be done of designing a building to meet those needs.

 

 

 

Ex Councilman Gary Hayward asked if details had been given to the Urban Land Institute (ULI) or to the Baker Study group, and if have they approved that kind of concept.  Vice Mayor Peterson clarified that the Baker Study was still in progress and had not yet made any final recommendations.  ULI said the concept of a cultural center would make a great deal of sense.  The Mayor said they had not gotten into details.  The Vice Mayor said representatives from the Baker group would be in the audience at the January 27th workshop.  

 

 

 

Carefree citizen Aaron Grenley asked if Mr. Lewis was prepared to pay the $4 million he's estimating this will cost, among other costs and income he'll receive by being able to build his project.  Second, is ASU paying us to build it, or paying rent, or is it going to be a "free ride"?   Mayor Schwan replied that he's asked Mr. Lewis for a better cost estimate, and said that Mr. Lewis' proposal is to charge ASU $1 a year in rent.  Mr. Grenley then asked if Mr. Lewis is prepared to pay the cost of the Cultural Center, and if he would do his condo/retail project without it.  Mr. Lewis answered that he bought the land in 2006, when the economy was in much better shape, and nothing has recovered to where it was in 2006.  He said he must have the  cultural center as an asset that the Town contributes as economic development.  He is not prepared to spend any money to build the center, and can't build his project without a cultural center funded by the Town, as it would not be economically viable for him without a cultural draw.  

 

 

 

Vice Mayor Peterson said it was his understanding that Mr. Lewis had proposed building the center for $2.5 million, not $4 million, and he didn't know from where that figure came.  The proposal was that the Town pay for it using sales tax revenue generated by Mr. Lewis' project.  The Town needs its tax people to look Mr. Lewis' estimate and determine if it is realistic, or would his proposal be out of pocket for the Town. Mr. Lewis explained that the building for the Phoenix Art Museum was to be a shell of 10,000 square feet, whereas the ASU building would be 14,000, and finished to ASU's specifications, making it more than $2.5 million.  He wants to spend more time with Gary Neiss and with the ASU Art Museum.  But the larger University has gotten involved and has more interest than was anticipated.  They are trying to determine how much and what programming.  He will be ready to respond to all the questions before the workshop on the 27th.

 

 

 

Mayor Schwan asked if Mr. Lewis thought they were fair questions.  Mr. Lewis replied that they were good questions and that he appreciated the frankness, without which they can't move along.  The Mayor asked if it was Butte's intention to do capital campaigning.  Mr. Lewis responded, "No."  The Town would fund and own the building as an asset.  "You would invest money from your accounts, the cash in the bank, future revenues."  He claimed that any other town would do this, and asked if Carefree is sustainable on its present course, adding this is not a happy place among the merchants.  Mr. Farrar said, "I think you would agree with me that this is not unique to Carefree."  He pointed out that there has been a large recession for the past 8 years.

 

 

 

Mayor Schwan said that 14,000 square feet at $300 per square foot is $4.2 million dollars.  Mr. Lewis said it would probably be less, but don't let's speculate.  "Don't start rumors."  The Mayor replied that he was just doing simple math.  When they were talking to the Phoenix Art Museum, the building shell would exceed $250 per square foot.

 

 

 

Mr. Farrar noted that the land had not been addressed and asked if Mr. Lewis was donating that.  Mr. Lewis replied, "No", saying he would deliver the building at his cost, which includes the cost of the land.  He said the Town should make this "investment for the benefit of the town merchants".  Mr. Farrar said the questions are "honest and real", and that the Town has to look at the underlying economics.  It has to make sense.  He further pointed out that the Town has public land, and asked if Mr. Lewis would be opposed if the Cultural Center were built in a different location within the Town core.  Mr. Lewis assured him, "As long as it's on Easy Street, we're accomplishing the original plan of the Town that it be on a main street that is a pedestrian way.  I think it needs to be on Easy Street someplace."

 

 

 

Mr. Farrar added, "And I hope you would agree that the Town needs to explore other bid estimates similar to what you're proposing."  Mr. Lewis answered, "Yeah.  There's no way they can come close to my cost on construction or land.  I encourage you to do that."  Vice Mayor Peterson asked, "Would that be acceptable to ASU with another location on Easy Street in the downtown core?"  Dr. Knox replied, "We're open to looking at all the possibilities.  I don't know enough about Carefree to make a judgement."  

 

 

 

Carefree citizen Carol Loignon expressed concern that the Heard Museum has had two locations in the area, hasn't made it, and moved out.  El Pedregal was vibrant when she moved here, and is suddenly pretty much a shell.  She asked how this was going to be any different.  "The Foothills Community Foundation, the Desert Foothills Theater, and the Desert Foothills Library are doing good things.  It seems like a lot of money for maybe going out of business in 5 years." 

 

 

 

Mayor Schwan asked if anyone else wished to speak.  Hearing no further responses, he thanked all who came to the meeting.  He called for a motion to adjourn, bringing the meeting to an end.

 

http://vimeo.com/user18676056/review/117068327/8febcb35e1

 

 

Lyn Hitchon

 

 

 

Prepared by Carefree Truth

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