Carefree Truth

Issue #373, February 10 , 2015

 

 

 

Councilwoman Melissa Price gave her presentation from the podium on the Chamber floor, requesting that questions and comments be held until she finished.  Her presentation followed the long and detailed letter she submitted for publication in Carefree Truth Letters which went out on 2/2.  It can be viewed again on our website at www.carefreetruth.com

Above her letter are the videos of the full Butte/ASU workshop held the week before the regular January Council meeting.  Ms. Price's presentation also included several slides, and is shown in full at the very beginning of the video at the bottom of this of issue.  She wrapped up her presentation by saying that asking Butte to fundraise for something that would not occur on their property, with no guarantee of timeliness that coincides with their Easy Street project is asking a lot.  The final slide contained bullet points from the Butte Resolution #Blank, which Ms. Price supported.  She repeated that "Delay is the deadliest form of denial."  "It truly is denial." 

 

 

 

Councilman Mike Farrar said he was looking at the two resolutions before them inviting ASU to assess the community in terms of fundraising and programing, saying it was way early to agree as a Council to a generic and unspecified project with too many unknowns.  Short of a rebuttal/counter rebuttal, Resolution 2015-02 was the resolution before them.  

 

 

 

Councilman John Crane noted that Mr. Wright raised a lot of points.  He thought the Town probably asked Mr. Lewis for a resolution that was much more complicated than the standard resolution, most of which are relatively simple, that was in retrospect an impossible task to do on his own and be legally correct.  Unfortunately, neither 2015-02 or #Blank after being modified does anything more than reinforce the resolution passed last summer.  Maybe a resolution should be considered just saying to ASU and Butte Companies that the Town would like to work with you and assist you to generate a development agreement by the first week in June, for instance.  Ms. Price was not sure what Mr. Crane was saying. 

 

 

 

She felt the two items that were difficult for the Mayor, the Vice Mayor, and Councilman Farrar to agree with were that this would be on Butte property and that ASU was asking for a 5 year lease initially, with the intent for a long term commitment. Michael Crow wanted to be sure they will be supported up here, and will not start with more than a 5 year commitment. 

Vice Mayor Peterson added that Resolution #Blank says the Town would fund the cost of the completed Cultural Center building, but that it doesn't list a number.  "There are some huge things that obligate us without specifics."  The Vice Mayor is in favor and wants to proceed, but  it is not there yet in terms of mutual responsibility.  He wants to negotiate so the Council can vote in June.  

 

 

 

Mr. Farrar said it would have been great if the Council had been ready to make this decision tonight, but it's not.  "This is really almost a blank check."  The Council must take seriously its responsibility as stewards of the Town's treasury, and look at other options before the community, and assess the community.  The purpose of the resolution is for ASU to come and assess to see if the community support for them is there.

 

 

 

Mr. Farrar is in favor of ASU, but is concerned.  Mr. Lewis is only willing to commit to Phase I of his project.  If he were really committed to Carefree, he would commit to Phase II as well, in which case, should the Town decide to fund the Cultural Center, Mr. Lewis would receive 50% of the cost at the completion of Phase I and the other 50% upon completion of Phase II.  That becomes a private/public partnership, a performance based incentive.  Demonstrate you're committed to this community.  As a Broker, he sees a developer working for a 25% reimbursement for his on site and off site costs.  If Mr. Farrar were a developer, he'd love to have an attraction to drive his retail and condos.  But this is taxpayer money, and there are big risks.  He said it is incumbent upon the Council to protect the treasury as best they can.  They are being asked to give away all their negotiating efforts in Resolution #Blank.  The Town has already eliminated the height restrictions, changed the parking code, and waived the impact fees.  Tonight, we have offered again to have ASU and Mr. Lewis here come up here, which is what we did back in August.

 

 

 

Mayor Schwan pointed to page 7 of Ms. Price's presentation, shown on the opening picture of the video, which showed an $84,372 forecast of income by 2020.  Ms. Price confirmed that was correct.  The Mayor said the problem is that many on the Council have different numbers.  Some of Ms. Price's numbers talked about the cost of a theater facility for the Desert Foothills Theater (DFT).  These numbers did not reflect  the commitment of DFT to do a capital fundraising drive, which ASU is forbidden by law to do, to offset the total investment that would be needed from the Town towards a building, rendering those numbers, which would likely be much less, inaccurate.   Councilman Glenn Miller pointed out that DFT had not submitted a plan, so there were no numbers available.  The only plans submitted have been for Butte's Easy Street South Project and ASU. 

 

 

 

Mayor Schwan stated that his biggest concern with Resolution #Blank was the way it tied the hands of the Town.  It says you can't do anything else.  Drop all negotiations with DFT, Heard, or any other entity we might want to bring to Carefree.  Ms. Price asked what other entity brings in sales tax revenue. This is tied to condos and retail.  The Mayor responded that the Resolution is not about sales tax dollars; it's about tying the Town's hands for 6 months, saying we have to stop talking to anyone else.  The exclusivity provision is the single biggest problem Mayor Schwan said he had with the resolution that was presented to the Town by Ms. Price and Mr. Lewis.  Ms. Price replied, "It doesn't say that."  Mayor Schwan again insisted it's exclusive to Mr. Lewis and ASU.  Vice Mayor Peterson assured her that Carefree wouldn't deal with ASU without including Butte, but said we're reading this as excluding us from talking to anyone else as well.  Mayor Schwan pointed out that it's not site specific.  Ms. Price said it's a choice between ASU on Butte property, or there are some who want to build a Council Chambers and DFT theater. The Mayor said Resolution #Blank forces the Town to put all the eggs in one basket.  Ms. Price disagreed.  The Mayor replied, "That's what it says." 

 

 

 

Mr. Farrar asked if this was to request ASU to come up here and solicit the community for their level of endorsement, exclusive of Mr. Lewis' project.  Ms. Price replied, "No."  Mr. Farrar stated that ASU made it very clear they didn't care where the Cultural Center was located, as long as it was in downtown Carefree.  Gordon Knox stated that the last time he was here, and asked why she was pushing so hard to handcuff the Town.  While he wants to see Mr. Lewis' project succeed, and wants ASU up here, he's not prepared to write an open check using taxpayer dollars without knowing what it looks like.  He told Ms. Price that's what she was asking for tonight.   Ms. Price told him he'd seen the plans, but that all the details will not be there until after they find out if the community support is there.  She added that she had an email from Richard Stanley, and the proposal is on the table to be accepted or rejected. 

 

 

 

Mr. Crane asked her to explain the proposal.  Ms. Price replied that the proposal is to lease the property proposed on Butte property to ASU for 5 years at $1 a year, with intent to continue fundraising for the long term.  For instance, if funds are pledged for 5 years, starting at year one, they would be fundraising with an eye towards year 6, and so on.  Mayor Schwan asked if Carefree had that in writing.  Ms. Price answered, "No."  The Mayor asked if Ms. Price was asking the Council to subscribe to all representations without written commitment.  Ms. Price said they are not ready to make written commitments.  Mayor Schwan pointed out that the Resolution asks the Town to do so with no commitment from them.  Ms. Price asked if the Mayor wanted to see the town center continue to die, and if the Town was going to sit on its hands for another two years.  

 

 

 

Mr. Crane suggested tackling the document aspect of the issue and sorting that out.  If not, then ASU has to decide if it wants to continue working with Carefree.  Mr. Miller believed that Butte and ASU should get some direction from the Town, that representatives from each should sit down to hammer out something fair and equitable to all.  "We can do that." 

 

 

 

Mr. Farrar thought that Resolution #Blank was much more far reaching than what was discussed at the workshop, virtually an "open check".  Mr. Miller replied, "We don't sign off on anything that is an open check."  Mr. Farrar felt Mr. Lewis was asking for that.  He could see the advantage to Mr. Lewis  having the Cultural Center on his property to promote condo and retail sales, and having 25% of his project funded with taxpayer dollars.  Mr. Farrar added that Carefree was hanging its hopes on a 20 year model.  Mr. Miller asked how Mr. Farrar figured the Town was funding 25% of the project.  Mr. Farrar answered that the land mass is 2 acres, 1/2 acre of which will be sold to Carefree for the Cultural Center.  Mayor Schwan repeated that the Council needed to find a common set of numbers with which to work, stating that tonight everyone has their own set of numbers that supports their view, and he suggested a workshop dedicated to that goal.  

 

 

 

Mr. Farrar again said that much of these discussions are happening too early in the process, that tonight was just supposed to be about asking ASU to come up and solicit the community.  Mr. Crane pointed out that ASU can't solicit donations without Butte and that Butte wouldn't solicit without a commitment from the Town.  Vice Mayor Peterson said this has been the dilemma for some time.  But a business plan must be resolved that works for the Town, Butte, and ASU, then we can pull out all the stops, and do it quickly.  But he was uncomfortable with something that tied the Town's hands to the extent of this proposal.

 

 

 

Mr. Farrar told Ms. Price that it is unfair to say that the Town has sat on its hands for 2 years.  That's not what happened.  1 year was spent in a dialogue with the Phoenix Art Museum, then the Town had to wait another 6 months for Gordon Knox to return from his world travels and put together a presentation.  That accounted for 1-1/2 years.  Ms. Price responded that back in August, ASU was told that DFT was the "anointed one", but ASU could hang some art on the wall.  Mayor Schwan said ASU was willing to work with DFT at the time, and he has an email from Ed Lewis saying he would accept it.  Ms. Price replied that ASU are "very gracious people".  Mr. Farrar said he talked to Gordon Knox, talks were resumed, and the requested resolution was passed in August.

 

 

Vice Mayor Peterson asked how Carefree could move this forward.  Mr. Crane said a plan needs to be generated soon. From the email he had seen that day, it appeared ASU's attention span was limited.  The Vice Mayor reminded the Council that at the last meeting it was agreed that a plan needed to be formed that worked for everyone, and that ASU had agreed.  Ms. Price said, "They presented it to us."   Vice Mayor Peterson asked what happens if the Cultural Center comes in well over the $4 million dollars being proposed.  Mr. Miller said ASU is not going to pay for it.  Ms. Price responded that Ed Lewis guarantees it within 5% plus or minus.  The Vice Mayor said he didn't see that in Resolution #Blank.  Ms. Price said, "It's not in here." 

 

 

 

Mr. Crane asked again how Carefree could move this forward in such a way that actually moves it, for better or for worse, approval or disapproval.  Mr. Farrar answered that for now the Council could adopt Resolution #2015-02, as advised by Town Attorney Mike Wright, inviting ASU to come up here.  It is way too early to consider adopting Resolution #Blank.

 

http://vimeo.com/user18676056/review/118895175/8b574226c9  

 

 

Lyn Hitchon

 

 

 

Prepared by Carefree Truth

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