CAREFREE TRUTH
Carefree Truth #488
Carefree Truth
Issue #488, May 23, 2016
Gary Neiss reported that the lease on the current Town meeting space expires at the end of July. The landlord was asked for a 1 year extension, with an option to renew. He quoted a price of $2,500 per month, and an additional $800 per month maintenance fee, bringing the total to $39,600 for the year.
The Town solved the problem of obtaining a meeting space by purchasing the building at 33 Easy Street last year at the abyss of the market. The building already had a tenant on the second floor, providing a cash flow. In January, the ground level was leased to Ed Lewis for a year to be used as a sales office, with an option to renew for another year. The location is ideal for him, as it overlooks his condo project.
The purchase was made without dipping into the Town reserves. A payment coming from the Carefree Water Company in 2018 will pay off the mortgage in full. The two tenants provide a positive cash flow, covering the mortgage and putting the Town $10,000 in the black. This will be applied to renting a room for Town government meetings until Mr. Lewis vacates 33 Easy Street.
Numerous places were contacted. None but the Foothills Community Foundation (FCF) met the criteria of being able to provide a consistent location, audio/video capability, and predictable costs. The FCF was not only able to firmly commit the Holland Center to all the meeting dates, but also offered by far the best price at $4,000 per year, with no add-on costs, and an option to renew. Toby Payne, of Technically Integrated, installed the audio/visual systems in both the current Council Chambers and at the Holland Center. He confirmed that the Town's equipment could easily be plugged into the system there.
Concern was expressed that the Holland Center is across the street from Carefree, on 60th Street just off of Carefree Highway, in Scottsdale and not in Carefree proper. However, Carefree contributed $50,000 to the construction of the Holland Center, viewing it as a community asset. The Town will be utilizing a meeting space it helped to build.
Councilman Gene Orrico commented that the Town would be saving significant money, calling it a "no brainer". Kiwanis meets there for the same reasons cited by Mr. Neiss.
Councilman Mike Farrar asked why the contract for the space at the Holland Center was annual, starting in August. He felt the end date of the contract with the FCF should coincide with the end date of Mr. Lewis' contract, which commenced in January, and noted that Mr. Lewis might renew his lease option for an additional year. Mayor Les Peterson replied that the FCF lease would be definite for the first year, after which Mr. Lewis would have a better idea of his schedule to vacate 33 Easy Street. Kandace French added that the FCF requires a one year original contract, and their calendar does not go out beyond a year. Mr. Orrico pointed out that the Town will need time after Mr. Lewis's sales office leaves to remodel the space to suit Carefree's meeting room use. Mr. Neiss said the FCF is willing to work with Carefree on a lease extension end date.
Vice Mayor John Crane reiterated that the excellent price quoted for the Holland Center was all inclusive. It was also the only venue that could guarantee the availability of a consistent location on all of the dates required. The Vice Mayor felt this was a very high priority because lack of predictability would discourage attendance.
Mayor Peterson said the Town looked at every possibility and the Holland center was the only one which met all the criteria. The Council unanimously approved the contract.
Lyn Hitchon
Prepared by Carefree Truth
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