(Lyn's note: We've gotten numerous letters with many valid ideas and viewpoints since the workshop earlier this week.  Since this is such a pertinent topic, with a potential Resolution to come from the Carefree Council at their February meeting next week, we felt it would be appropriate to send out a Special Edition Letters dedicated to this topic, so the Council and the public would have access to all possible input, rather than the issue on the Cox Communications presentation from the January Council meeting that was prepared for today.  Some, but not all letters, were sent to both Town Hall and Carefree Truth.  If you would like to weigh in on this subject, please feel free to write to Town Hall and/or Carefree Truth, and we will again send Letters received before next Tuesday's meeting.)

 

 

 

ASU/Carefree Culture Center

 

I’ve been listening to all parties, including the Baker Group consultants and many of our Residents for over a year now concerning the “Easy Street Project” — along with some type of major attraction, such as the Phoenix Art Museum and the Heard Museum and now ASU — all at Public Meetings.

 

The time has come to make some decisions based on due diligence - many meetings, discussions, and number crunching that I personally have done.

 

I shared my thoughts and opinions at the last Council Workshop on Jan. 27th, but want to share them here with folks that did not attend that meeting.  

 

1) We talk about branding all the time.  What is Carefree?  The only branding we can be with a commercial Town Center and the beautiful gardens that we inherited is to recapture and build on fine art, fine dining and entertainment within this district.  We are not Cave Creek, nor Scottsdale.

 

2) The Town Center will die, along with the sales tax revenues if the Town is not willing to invest in the ASU/Carefree Cultural Center along side of Ed Lewis’s Easy Street Project which includes new retail, new restaurants and condos.  I do not know of a Town or City nationwide that does not invest in their revenue generator.

 

3) This project is the much-needed Jump Start for excitement and energy in revitalizing the Town Center.  This will show other developers and potential retail businesses that this Town is progressive and truly cares about the commercial property owners and merchants.

 

4) The Town needs Ed Lewis and ASU more than they need us.  (Do not take this as a sign of weakness by me.)  Any new business or an investment by a developer is taking a financial risk on their part, so the Town needs to do their part in this investment and share some of the risk — that’s Business.  This great country was built on hard work, along with investment and risk, something that’s second nature to me and many of you.

 

5) The ASU/Cultural Center conceptual drawings show as an option incorporating the Town Council Chambers into the multi-purpose room.  This is a very workable concept - saving the Town money in the near future 

**Town owning vs. leasing space saves ~$50,000 a year.

 

6) I have reviewed and analyzed the numbers in a Fiscal Impact Analysis Report for the Easy Street Project (north & south parcels), which was given to the Town in September 2014.  This Study and research was performed by an independent third party (out of California), and estimates are not a representation of the developer, Butte Companies.  Tax revenues in this analysis show a rate-of-return for our investment over a 20-year period at approximately $7.9 million.   These numbers are estimates over a 5 year-to-20 year timeline, which in my opinion seems fair and reasonable.  The 20-year average = $394,000 per year.  Of the $7.9M, the first 5-year projections average $458,166 per year x 5 = $2,290,830 total.

**NOTE:  This does not include any numbers from increase in sales tax revenues from the existing Town Center businesses.

 

7)  The majority of Residents that I’ve talked to are behind this project and I talk to a LOT of Residents.  They are especially behind this when you inform them on the issues:

A.  Increase in sales tax revenues vs. a property tax

B.  This is the jump start for the Town Center revitalization

C.  New Retail and New Restaurants 

**All of the above points contribute to an increase in home and property values.  

D.  All of this can be accomplished without changing the overall look and feel of Carefree, the small Town Village that we all love.    

DESERT FOOTHILLS THEATRE (DFT) GROUP

It’s all about priorities.  Do I want to see them have a home in Carefree?  YES!

We need to generate sales tax revenues NOW!  We have to pick our priorities and “pay as we go.”

The DFT will not generate any sales tax directly.  They are a 501(c), and pay no tax. There is no tax on entertainment with ticket sales.  

Indirectly they will bring in people who will shop and dine, creating some sales tax revenue - hopefully!

On the other hand, the Easy Street Project starts producing sales tax revenues from the start.  

The DFT should be what I consider as Phase II of our Economic Plan.

Respectfully,

Glenn R. Miller

Carefree Councilman

 

 

 

 

 

4.5% $250,000.REVENUE PROVIDED BY TOWN CORE

I think that these numbers should be considered in whatever direction the town goes concerning the "proposed" Cultural Center.  Although I was left with the impression that some City Council members seem to forget this.  Putting all other issues aside, will this project provide any marginal increase in this revenue.  If we increase this number 3 times, we are increasing our revenue to $750,000 per year, still not an appreciable increase in revenue.  Definitely not worth the risk of saddling the town with an expense of $4,000,000.00 and the potential risk of having a vacant building 5 years down the road.

What is the towns responsibility concerning it's building owners and businesses? I believe it the responsibility of the business and the building owners to provide a product that is desirable to patrons.  At present this hasn't happened, and a few vocal businesses and landowners seem to think that it is the responsibility of the town.  The town has provided you with parks, gaslights, signs, a pavilion, advertising, fairs, etc.  and most of you can't keep your stores open. 

Presently our town core has a bunch of tired buildings and many businesses that aren't relevant to what the local residents want.  Invest in your buildings and in businesses and you might be surprised as to the outcome.  Provide a good product and the people will come.  If the product isn't what the people want,the business will fail. This is the risk/reward of owning a small business We have a wide circle of friends and they are of the opinion that they would  love to spend our money in Carefree, but their is little to spend it on. I am also of the opinion that a Cultural Center won't solve the problem.  I don't see other successful shopping destinations which have Cultural Centers.  Example:  Kierland, Summit,  Summit tried Heard and it wasn't successful.

I believe that the only logical way to decide as to whether to proceed is by a Referendum.   This would allow all residents to decide instead of a vocal few.  

 

On another note, I find the lack of civility among the Council Members at the Town Council distressing.  I would like to expect better of our elected officials.

Please feel free to publish my thoughts as you see fit.  Thank you for the service you provide.

 

P.S. Feel free to put my email address on the email I sent you.

nancykeller03@gmail.com

Jim Whitmer

Carefree

 

 

 

I am very concerned that, to my knowledge, no financial statements or tax returns have been provided by Ed Lewis/Butte Companies when Mr. Lewis is requiring approximately 4 million dollars from the Town reserves for a cultural center to be used by ASU for an indeterminate period, before beginning his project.  Certainly, no bank would loan that kind of money without those disclosures.  These items were required by the Town even when handing out small grants, usually $5000 or less, to many of the local charitable and cultural organizations in the past. 

 

If ASU doesn't prove to be the economic draw that is expected, and the retail/condos aren't quickly filled, the Town would be left holding the bag, with little or no reserves to provide needed Town maintenance and safety services.  Furthermore, the location of the cultural center proposed on the Butte Easy Street South project would not be in close proximity to the existing retail, so I don't see how that would significantly increase sales tax revenue or help those merchants.

 

If financial reports and tax returns have not been provided, and perhaps they have and all is well, I would encourage the Town Council to do more due diligence before making further commitments to this project, and I would also encourage them to investigate alternative locations for a cultural center in downtown Carefree that would be more convenient to the existing shops and restaurants.

 

Thank your for your consideration of my concerns.

 

J. Johnson 

 

 

 

Hi Lyn.

I'm confused. I read that the luxury condo's proposed for Easy Street were being developed for people who want to "lock it and leave". Isn't the whole purpose of the Town Center revitalization effort to have people " stay and play" in Carefree? If the condo buyers lock and leave does that  mean that all that commercial space to be built and the ASU museum is being built for those of us who are already here?

Color me confused please.

Phil Corso 

 

 

 

Dear Mayor Schwan and Vice Mayor Peterson,

 

I am a Carefree resident and business owner who pays sales tax to the city of Carefree, I must say I was appalled at the rudeness and disrespect councilman Miller showed towards you at last night's meeting. 

 

I too agree that something has to be done to improve business in Carefree, however, I don't think a town funded building for an ASU community arts center is the way.  I will guarantee that neither we nor any of the people we have discussed this with in the community will use such a center, and to squander our town funds on such a venture to benefit a developer's financing issues would be irresponsible. 

 

Neither Kierland nor Scottsdale Quarter have community centers, what they do have is anchor stores and restaurants, that is what Carefree needs to draw people to spend money. 

 

Why doesn't the town offer tax incentives for businesses and developers to move in instead of being straddled with debt and a building that will surely bring us further debt in the future.  I suggest Carefree develop an architectural standard so there is some continuity to our town and hold landlords responsible to keep their properties in repair or face fines. Right now we are a town filled with numerous run down deteriorating buildings run by landlords that will not draw or keep tenants no matter how much money we throw at a community center.  Find out what it would take for starbucks, wildflower bread company, etc. to come into town, the community will support good restaurants.  Take a look at how well the good restaurants in Cave Creek do, Harolds, Oregano's, Tonto Bar and Grill are good examples of waiting lines to get in at night., there are no waiting lines in Carefree, this is not due to our lack of foot traffic. 

 

I felt the Mayor Schwan and Vice Mayor Peterson had a level headed grasp on the downside of this proposed project. Please hold your ground. The last thing this town needs is debt. 

 

Regards,

Evette Hartig

Evette Cowen Design

 

 

 

Hi Lyn,

I just sent the attached to Gary & Les.

Les was the only Councilperson who seemed to truly understand what Butte was proposing and the consequences .

 

Hi Gary,

I know your time is precious right now so I thought I'd put my suggestions in writing rather than waste your time with a mtg.

1 - The Cultural Ctr costs should be split 50/50 . Both the Town & Butte benefit equally. Assuming a projected cost of $4.2 mil, Town pays 2.1 . We front the first mil for Start-up costs to Butte. I believe that would be an enticing show of good faith and would help his financing . The other 1.1 would come from the projected income from the Meyers Report that reflects a return to the Town over the first 5 years of $2,290,000. It would be a simple deduction - No out of pocket to the Town

One Very important factor - Butte must in writing agree that he is committed to the entire project in one flowing Phase, both North and South . If he stops at a Phase one it would cripple the Town financially. Buttes The Landmark in Scottsdale is a prime example of building Tower 1 & Tower 2.

On ASU , they need to show more aggressive commitments to the faculty & their supporters. The success of PVCC up here is an incentive . I would come to the table with the following:

5 year commitment $300,000/yr for a gross total of 1.5 mil or a 3 yr commitment for 1.5.  Since they're only willing to come to the table for 5 yrs, they could walk and if they walk they might as well walk in 3 yrs . We will all know if this whole project will be successful.

My Thoughts

Joe J DeVito 

 

 

 

I distinctly recall Ed Lewis saying more than once at public meetings I attended that he gave his personal guarantee the building for his cultural center would not exceed $2.5 million dollars, and if it did, he would absorb any cost over that amount.  What ever happened to that "personal guarantee", and how did the demand now raise to $4 million and counting?  If Ed Lewis is a man of honor, he will keep his word.  If he doesn't, that also tells you something.  Let the buyer beware!

Ed S.