(Lyn's note: For those of you who were not at the workshop last week and would like to see it in its entirety, these are the videos, complete, of the meeting.  Herbert broke it down into sections for easier publishing and viewing, but it is all there.  The proximity between the workshop and this Tuesday's Council meeting, where it seems some decisions may be made, as well as the time it takes to publish all the videos since Herbert does have a "day job", did not give us time to publish any written issues about the meeting.  Feel free to continue to send letters, pro or con, and we will publish them.  You can also make your opinions heard by emailing the Town of Carefree at council@carefree.org.  The Council members do want and care about your input on this important matter.  Please scroll down for the most recent batch of letters sent to Carefree Truth, which are below these links.)

CULTURAL CENTER WORKSHOP OF THE CAREFREE TOWN COUNCIL: 1/27/15 Part 1

http://vimeo.com/user18676056/review/118315703/6f628d6122

CULTURAL CENTER WORKSHOP OF THE CAREFREE TOWN COUNCIL: 1/27/15 Part 2

http://vimeo.com/user18676056/review/118242533/1e0dcd976e

CULTURAL CENTER WORKSHOP OF THE CAREFREE TOWN COUNCIL: 1/27/15 Part 3

http://vimeo.com/user18676056/review/118372120/08b9979bc0

CULTURAL CENTER WORKSHOP OF THE CAREFREE TOWN COUNCIL: 1/27/15 Part 4

http://vimeo.com/user18676056/review/118346787/fe10e048a3

CULTURAL CENTER WORKSHOP OF THE CAREFREE TOWN COUNCIL: 1/27/15 Part 5

http://vimeo.com/user18676056/review/118378899/b627091540                                 

 

 

 

I know this is long, but please publish in its entirety in your blog  

Hi Lyn,

I think it’s my turn to express my thoughts to everyone.  I’ve watched the Town Center struggle for the last ten years.  I remember when the gardens were left to deteriorate and there was no marketing of the Town itself.  Restaurants and businesses have been steadily leaving.  I have talked with landlords, business owners, brokers and developers for the past 3.5 years—people like Marty DeRito (one of the largest retail developers in the state).  They smile graciously and wish us good luck.  The Urban Land Institute comes in and essentially outlines all the things we listed in our Economic Development Plan in 2011.  Apparently that still isn’t good enough, we hire more consultants.  We know what needs to be done.  ULI mentioned we had to have courage.  The public voted for us to make good business decisions.  Instead, we delay, delay, delay.   I think it’s time for revitalization.

The reality of our little village is that most residents go to the post office and home; most town residents buy their groceries other than Carefree; most town residents buy clothing elsewhere; and most residents don’t support our restaurants.  The reality is that our Town Center Village retail is going elsewhere (trade leakage).  $70 Million goes from this surrounding area to Scottsdale and Cave Creek!  We NEED an “anchor,” to strengthen our “brand” and we need “people” in the Town Center to be successful. 

I think the perception is that the Town treasury will be raped and pillaged if we pay for a Cultural Center.  There is concern the ASU Cultural Center will not be interesting enough — that ASU will only stay for five years and leave — that we’ll be stuck with a white elephant building.  Those are all legitimate fears but again, let’s get real.  Let’s start with the building.   I have been told repeatedly by their Sr. Vice President that they want a long-term relationship with us, but this is a new animal for them and Dr. Crow will not agree to more than five years to make sure that they are giving the community what it needs.  Dr. Crow is a businessman.  What non-profit knows exactly where it will be in five years?  They plan to continue fundraising, pledges, memberships from day one of the opening to continuing fundraising for years 6-10.  IF the worst case scenario develops, the building can be turned into lofts, or 3-4 condos, another cultural facility, a restaurant, or move the current Town Hall to that location and sell the existing town hall to a restauranteur that wants visibility from Cave Creek Road.  

Let’s talk about the Town treasury.  As of 01/31/15 we have a total amount of $5,563,513.  We set aside 50% of our operating costs - $2.5M and now have $3.0M available for investment in the Town.  Carefree has one of the highest reserves of most cities and towns in Arizona.  Most are either at -0- reserves or 8-10%.  

The Butte/ASU proposal on the table is to build an ASU Carefree Cultural Center of approximately 12,000 SF on Butte property at a cost of $4M.  ASU agrees to a lease of five years at $1 per year and philanthropy to ASU covers the operational costs.   They are preparing a Resolution to that affect and would like the Town Council to endorse it.  That endorsement allows ASU and Butte to feel comfortable that a plan is outlined and they will go forth and start a fundraising effort . . . to see if it is feasible!   The push by Butte is a businessman that knows he has deadlines in order to build at a certain time — and in order to fundraise at a certain time.   The fundraising season is upon us — people are here through May.  

The $2.5M cost originally mentioned was a whole other deal -- the cost put forth by Butte when the Town was in discussions with the Phoenix Art Museum (PAM).  That PAM building was not going to be equipped by Butte with museum-quality HVAC system, or museum-quality lighting, or museum-quality security.  The deal on the table with PAM was that they would provide the equipment and operating costs.  It was more of a shell building that was in the 8,000-10,000 SF range.  ASU will not accept a building that doesn’t have those items, and they felt to be successful it needed to be approx. 12,000 SF.  Of course the building costs are more!   

The Council is divided.  There are Councilmen who prefer building a Desert Foothills Theatre with Council Chambers on Town property (right now next to the current Town Hall).  "Architectural renderings" of a 25,000 SF theatre surfaced recently.  We are told to believe that was just a dreaming session.  Right.  I believe the entire Council loves the idea of a Desert Foothills Theatre, but as I said in the petition I authored — there are priorities and a local theatre and Council Chambers are not at the top of my list.  The Mayor has repeatedly told me a theatre has to be top quality — 250-350 tiered seating, green rooms, showers, dressing rooms, practice rooms, the ability to take the sets up into the ceiling.  I asked my friend and fellow Councilman Glenn Miller to estimate for me a high and low amount for this 25,000 SF building and he figured a high of $10M and low of $7.5M.  This also entails abandonment of Sunshine Way, engineering, architectural drawings, the public bid process and project management costs.  AND NO SALES TAX REVENUES!  It does not have the Easy Street South condo/retail project to generate sales tax/condo construction tax revenues to offset the cost, nor foot traffic.

I, and others believe we need revitalization and sooner rather than later.  The Easy Street South (ESS) condos and retail businesses will bring in NEW SALES TAX REVENUES totaling $1.3M the first five years.  Our existing sales tax revenues from the Town Center bring in approx. $400K per year.  (This is excluding CVS, Lowe’s, Basha’s, the Resort.)  It is likely that with this first phase development of retail and condos, as well as a museum/cultural center, other existing businesses will experience a “lift” in terms of sales revenues and other new businesses will be enticed to the Town Center.

How could the Town pay off this $4M investment?  Condo construction taxes will be received in 2016 and 2017 from Butte totaling $964,483.  Add two years worth of ‘half' of the existing sales tax revenues from just the Town Center businesses - $400K ($400K/Yr. x 2 / 2 = $400K); add $2M from the Town Treasury (leaving $3.5M) and obtain a loan <3% for 10 years for $635,517 and that totals $4M to be paid in 2018.  The Town receives the start of a loan repayment from the water co. in 2018 of $414K per year.  We would also have Council Chambers in the new ASU Cultural Center so we would be saving $50K/year.  We would have that $4M asset paid off in two years.

The Easy Street South (only) parcel is estimated to bring in $3.5M over the next 20 years.  With the Easy Street project as a catalyst, along with an ASU Carefree Cultural Center, new businesses and restaurants, new construction will be attracted to the Town Center.   If Butte is successful they will continue to phase II which means even more tax revenues for the Town.    

And don’t think the landlords aren’t waiting to see if the Town will invest in itself.  I believe they are.  When approached about a Commercial Facility District they seemed to be on-board and realize we need to keep renovating and revitalizing the entire Town Center. 

Tony Geiger asked me to look at the worst case scenario and for me that is watching businesses leave and KNOWING that we have tried and tried to get new businesses and restaurants into the Town and have not achieved a great deal of success.  I also looked at all the services provided by the Town and estimated what a property tax may look like based on data Glenn obtained from the water co — there are 1,879 Carefree water meters and 672 Carefree residents on the Cave Creek Water system and based on our current essential services costs ($3428,348) divided by 2,551 water meters - we’re looking at $1,344 per household.  This is NOT based on an 'assessed valuation’, God forbid what some of our property taxes could look like.   

Whatever direction this Council takes, the investment should make sense with viability, sustainability and return on investment.  Our Town is almost built out and construction tax revenues will cease.  It only makes good business sense to be positioning ourselves for the future NOW.   This Council must lead and think business — what’s best for the Town.  I do not believe there is a better traffic generator than the plan on the table right now with ASU and the Easy Street Project.  This is probably one of the best proposals this Town has seen in 20 years.  It benefits the merchants AND property values of the residents!  I believe it improves the quality of life with culture and restaurants here close by instead of 20-30 minutes (or more) away.      

I know this is a lot of data.  I just hope it makes sense why some of us are fighting so hard for the future of the Town.

Best regards,

Melissa Price

Council Member, Carefree, AZ

Tele:  480-227-1927    

 

 

I've lived in Carefree for a little over a year and am a full-time resident.  Frankly, I think this Ed Lewis project is pie in the sky!  As pointed out in other letters, people move (and visit) Carefree for its beauty and peacefulness.  Now to the crux of matter, as I see it, why would anyone want to build more commercial buildings here?  I frequently walk my small dog through the park and down the business streets.  I noticed the other day another shop had gone out of business; leaving yet one more empty store among the already proliferate number that presently exist.  If the City is going to spend our tax monies on development, why not direct it toward rehabilitating and using what already exists?  That includes City Hall!  How much room does a small city like this need to operate in?  If rents are too high, then perhaps some negotiations and mediation could resolve that if you find out why an owner is willing to let space sit vacant rather than renting it at a lower cost.

I completely agree with Laurie P., Robert G. Wilson, KT Palmer and Tom Darlington, and apparently many other citizens of Carefree.  The Ed Lewis and ASU Project are bad ideas. 

S. J. Walzer

 

 

Hi Melissa – I’m responding to your request for a two-liner regarding the proposed Easy Street development.   I don’t imagine you will use my comment.  That’s okay, but I do want to explain why.

I agree that the Carefree Town Center needs revitalization.  However, I also believe that any multi-family development in Carefree needs to stand on its own, without special zoning, “text amendments”, nor subsidies from the Town.  We should help the existing building owners and businesses by alternative means.

In reading the ULI Final Report and Briefings, as well as the 2011 citizen survey, there are a number of points that I’d like to comment on:

1.      The buildings within the study area around Easy Street do not have common ownership, because individual owners control them.  Thus, there isn’t one decision-maker to deal with when discussing improvements.

2.      Easy Street shops are not visible from the street, and therefore customers don’t know what or where they are.

3.      There is not enough parking, so people don’t come to shop.

4.      There needs to be more foot-traffic (like Kierland)

Here are my thoughts:

1.       Adding new competing retail at the Ed Lewis project will not address this issue.  Carefree could form a “Redevelopment District” wherein a combination of sales tax credits and/or low-interest loans could be used.  When you look at El Pedregal, which is both visible from the street and gorgeous architecturally, there is only one owner.  The reason the businesses located there failed is because of the rent increases, not lack of a common owner.  In fact, the mismanagement of that property is what had led to it becoming 90% vacant.

2.      Lack of visibility from the road didn’t stop Carefree Station* or Venues from becoming successful.  There are many businesses in and around the Town Center which are doing very well.  We should do everything possible to help existing landlords and business owners to succeed, and that in turn will bring in new ones.  Should the Ed Lewis project proceed, how will it really affect the existing retail businesses?  What type of incentives will be offered to fill up the new retail spaces?

3.      There is ample parking.  When there are events like art shows, the Christmas pageant, etc., people seem to be able to find a place to park.

4.      With more desirable tenants, the foot traffic will come.  Many have stated that with new luxury condominiums, those owners will shop here.  That’s true, but with the condos being “lock and leave”, what happens when the new owners leave?  An ASU Cultural Center may or may not attract enough people to help existing businesses, but financial incentives would. 

*Carefree Station is sorely missed.  Many people went there because of its food and ambience.  But, there was often a horrid sewer gas smell in the front entry and bar area.  Without resolving that problem once and for all, Spanish Village will not attract a viable restaurant tenant.  Spanish Village is one of Carefree’s most iconic buildings, and needs to have that problem fixed. 

I feel strongly that we should take care of what we already have.  Funding a high-risk multi-use project, and using Town money, will only exacerbate the issues currently facing business owners in the Town core.  Restaurants particularly, should have their water and sewer rates rolled back to where they were before the huge rate increases.

In short:

1.      Create an “Economic Redevelopment District”, and provide sales tax incentives, low interest loans, and water/sewer rate reductions to the businesses on Easy Street

2.      Do not use Town money to subsidize private development

3.      Put pressure on Liberty Sewer to eliminate the sewage smell at and around Spanish Village

There have been quite a few improvements in the last few years, and I commend the Town Council for their hard work.  But, Carefree is not Kierland.  Live-work studios and condominiums above retail work well when there is a close urban employment base.  And, private development needs to remain private.  At some point I’m sure the economic feasibility of either commercial OR multifamily would work for Mr. Lewis.  As the Town Center continues to improve with a little help, and with the recovering economy, I look forward to our future.

About me: 

I have been a partner in three successful condominium projects in Seattle.   For over 20 years I specialized in both development and sales of condominiums.  I’m very familiar with the process, from site selection to financing, to sales.  If the Easy Street project is not feasible without the condominium, commercial, and “anchor tenant”, then it should not be built.  It really is that simple. 

Jackie McDermott, Associate Broker

34305 N Scottsdale Rd

Scottsdale, AZ 85266

480-861-6007 | Fax 480-624-3486

 

 

Dear Lyn,

Thanks so much for this e-mail.  As I have read your preceding notes and reports about council meetings and discussions concerning the direction the town should take toward re-development, I have been hopeful of some action but increasingly concerned about the possibility of a “joint venture” with a private developer.

For my part, I think the idea that Ed Lewis seems to promote sounds lovely and if it worked as planned could be an excellent project for Carefree.  HOWEVER, the risks seem obvious to me.  If he is able to demonstrate the soundness of the plan to a bank and secure financing at today’s extremely low interest rates I hope he goes for it and makes lots of money.  On the other hand, even I (your commie friend and neighbor)  absolutely think it is outside the role of government to  align interests with a private commercial entity.  Not only does it pervert the free market place it could recklessly place the taxpayers at unnecessary financial risk.  I definitely add my name to the list (apparently growing) of those who would request a referendum before any such action, and following disclosure of a full financial assessment such as you describe below.

Trudy Miller

(Lyn's note: Trudy's joke about being my "commie" friend is because she's a staunch Democrat in a very "red" area.)

 

 

If the money is burning a hole in the town's pocket, let's use this tried and true simple formula. Offer to desired business “ build to suit, with extended leases ‘’. The town owns building , landlord has a triple net lease. ( like shopping centers )

Dick H.

 

 

Lyn, I would appreciate it if you would publish my comments in your next newsletter.

"I must say that I appreciate and agree with all of the comments of many of the readers that have written in questioning the value of supporting a development with taxpayer dollars when the need for such a development is highly speculative.  In my opinion, one of the “drivers” behind the Lewis development has been the assumption that future residents of the anticipated development will live, shop and dine in Carefree. Current shopping and dining patterns of long time and recent carefree residents seem to suggest otherwise. I believe that most Carefree residents do the majority of retail shopping in Scottsdale and Phoenix with an occasional nod to local retailers. When my wife and I seek a dining experience we sample a variety of dining experiences many of which lie outside of Carefree. 

The point is that most if not all of us living in Carefree were drawn by the open spaces, languid lifestyle, lack of the hustle and bustle associated with cities like Scottsdale , etc.  So why the desire to replicate an environment that we sought to escape? Why fund a developer’s desire for profit with taxpayer assisted largesse? 

Regarding the  establishment of a cultural center venture with ASU, it is a great concept but does anyone really believe that such an enterprise will be successful? Did anyone check with the Heard museum about its brief existence at the Summit ? Can we realistically assume that such a cultural center will draw sufficient interest to justify the development and operations costs? 

Carefree is and hopefully will remain a resort like community that appeals to those of us who want to experience a greater balance with nature than that afforded by the communities that surround us. Lets keep it that way for the reasons already articulated by my fellow citizens. Let’s all work for change that sustains and improves the Carefree lifestyle. Let’s support our merchants that have already invested in the community with their time, energy and resources. If Ed Lewis really believes in the efficacy of his proposed development, then he should have no issue in providing the funding necessary to make that vision a reality. My fear that we will be the worst for it in the future."

John Nimsky

JDN@JohnNimsky.com

(602) 625-0026

 

Tony,

Very sensible letter.  It seems to many of us that we are in another downturn in Arizona, and while new projects can improve town morale, we have all learned the hard way to plan for the worst.

Sara Vannucci 

 

Lyn, your Carefree Truth gives all residents of Carefree a way to communicate their opinion of the development of our community. I believe we should look to the arts as our catalyst for growth. We should take a good look at what the Desert Foothills Library has done with volunteers and contributions, and how this allows them to change and keep up with the times. David Court is a master at using the arts to draw people, especially volunteers. Desert Foothills Theater works much the same way and would be a good fit for the Carefree family.

The town does not need the giant ASU to use our money and be in a position to devour our town. They are so big they would eventually call the shots.

We don't need a condominium complex which will be filled with people who would not give a hoot about Carefree, only where it serves there seasonal needs.

We draw first class restaurants only to have them forced out by the building owners.

Our elected Mayor and Council should not hand control over to the giant ASU, or  invest the Town's money to have a developer control our downtown, as the landlords do now.

Not an expert at anything,

Joseph Corpora