Carefree Truth
Issue #724, February 15, 2019
Issue #724, February 15, 2019
Gary Neiss noted that the development group for the proposed Carefree Hampton Inn has 230 years of collective experience. They are a very seasoned group that specializes in this type of project. They have $800 million in development projects, a tremendous portfolio.
J.F. Carter, of CFM Realty was the first presenter.
J.F. Carter, of CFM Realty was the first presenter.
Photo By Herbert Hitchon
Mr. Carter said their development team noticed a hole in the market in the North Valley for limited service hotels. They did feasibility studies and evaluated the market. They chose the Hampton brand because it offers that type of hotel. Their vision is for affordable hotel rooms for families and business travelers, yet with some resort types of amenities. They looked all over the North Valley and finally decided on the Easy Street site. They liked the location, the relationship to the restaurants and bars, the amenities, the stage, the water features, the Pumpkin Festival, and the proximity to the world's 3rd largest sundial. It all fits with their desired image, and provides a complimentary use for Carefree. They formulated the site plan working with guidance from the Town staff. It's not "completely cooked" yet, but is heading in a good direction.
Magnum Development, CFM Realty, McCune Development, and the Lincoln Hotel Group are independently owned companies that have worked together in the past and would be working on the Hampton Inn project. A newly formed LLC owned by Magnum Development and CFM Realty will own the property, and The Lincoln Hotel Group will be the managing partner. The Lincoln Group currently manages 17 other properties, with 5 more under development not including this project. Their principal agent has been in the hospitality business for over 35 years and is currently active in 18 states.
John Hughes, from Magnum Development, said they met with the neighboring Town staff to discuss a completely different site, but saw the Butte property sale sign and switched to that site. They wanted the front door to be across from the sundial, and created a design working from that point. With the Town criteria in mind, they designed it so guests would enter via the main town center. They would build the hotel into the hill as it starts to rise from the east. The site meets all the needs that Hilton wants and meets the needs of the developer for a "resort style" Hampton Inn.
John Hughes, from Magnum Development, said they met with the neighboring Town staff to discuss a completely different site, but saw the Butte property sale sign and switched to that site. They wanted the front door to be across from the sundial, and created a design working from that point. With the Town criteria in mind, they designed it so guests would enter via the main town center. They would build the hotel into the hill as it starts to rise from the east. The site meets all the needs that Hilton wants and meets the needs of the developer for a "resort style" Hampton Inn.
Photo By Herbert Hitchon
There will be approximately 30 rooms per floor. They will be a mix of 1 bed rooms, 2 bed rooms, and suites with a small living room component. They will be using exterior materials seen in the town center: stone, stucco, and rusty metal, with landscaping in keeping with the Gardens. The elevations will be articulated, not flat. The pool will have an upscale feel.
The building will be pushed back from the main circle. Even on December 21st, the shortest day of the year when the shadows are the longest, the shadows will not interfere with the sundial.
Every room will have a beautiful view. People will go home and talk about it, getting an audience that Carefree doesn't have now, or encouraging the current audience to spend the night.
Mr. Carter, returning to the podium, said a back-study they did showed the proposed hotel would generate 119 person-years of employment, over $6.4 million in wages throughout its lifetime, nearly $17.1 million in economic impact on the local community and the region, 35 hotel jobs creating $1.5 million in wages, and nearly $4.7 million in local economic activity annually.
Projected tourists would support an additional 107 jobs in the community and the region in other industries such as restaurants, entertainment, transportation, and retail establishments. Additional tourist spending would support $3.3 million in wages, creating $8.3 million in annual economic activity. While these are projections, the firm they hired to do the study has an excellent reputation, and they felt the numbers would be pretty close to those projected.
The direct fiscal impacts to the town include construction sales tax of $383,050 in the first 1-1/2 years; total annual sales and hospitality taxes of $334,500 with an additional $75,000 in State Shared Revenue taxes; with 10 year cumulative tax revenues of $4.1 million.
Cory Mitchell is the Hilton Development Managing Director with the Hilton Group. He oversees Arizona, New Mexico, and Oklahoma, and has been with Hilton for 17 years. He lives in Scottsdale. He wanted to stress that this project is a limited service hotel, very different than the Boulders Resort, which is also part of the Hilton Group. A limited service hotel like the Hampton Inn is needed in this area for leisure/business customers. It would only serve breakfast, sending guests to the local restaurants for lunch and dinner. The small bar would only serve light bar food like tacos and light bites.
Photo By Herbert Hitchon
The Hampton brand has been around for 40 years. Hilton is turning 100 this year. Hilton has been in business longer than anyone else. There is a great deal of experience. This would be an upscale limited service hotel with affordable pricing to attract good clientele to come into this market, not an economy chain like what is seen at airports and along roadways. Hampton has about 2,600 locations worldwide. It would be a great addition to Carefree, with upscale clientele spending money in the town, and adding jobs. Hilton has had a good working relationship with this development team for over 20 years. What they will design would not be a cookie cutter hotel. The design and landscaping would fit into Carefree.
Mr. Mitchell asked if the Council had any questions. Councilman Gene Orrico asked about the time frame and Mayor Les Peterson asked about the price points. Mr. Mitchell turned it back over to Mr. Carter to answer those questions. Mr. Carter said a feasibility study suggested that, like other Hampton Inns in the Valley, they could charge $175-$180 per night during the season and $140-$160 in the off season, depending on the time of year.
As to timing, they would ideally like to open in the middle to the 3rd week of September, 2020. The construction time frame would be 12-14 months. They would like to begin construction in July or August to meet that date. They would like time to work out the kinks that come with anything new, and be a "full running machine" by the Pumpkin Festival. They were looking for approval of the development agreement at the February Council meeting so they could move on to the Planning & Zoning (P&Z) Commission. They had made their application and were working with the Planning Director. They were waiting for comments so they could incorporate those into the plan. They would like to present the site plan to P&Z in March. If it is approved, they would present the final site plan to the Council in April. If that is approved, they would close on the ground the following week. Permits would take 6-8 weeks, then construction could begin.
Mr. Orrico asked if any preliminary work had been done on the site. Mr. Carter replied that a landscape inventory and a new survey had been done. The drainage and utilities would be finalized in the survey. A survey was done in 2006, but there have been changes in the terrain, so it is being updated.
Councilman Stephen Hatcher asked if the infrastructure is in place to absorb the wastewater. Mr. Carter said yes, that was all planned for in advance. Gary Neiss reminded the Council that more intensive development plans had been permitted on that site from a previous mixed use project. Each unit had laundry rooms. It was a more intensive use than what was being proposed now, from a wastewater perspective. Liberty Utilities, which provides the wastewater service, reviewed those plans in the past and approved them. This is less taxing to their system than the previous plans. Mr. Orrico noted that the previous project had 134 units.
Mr. Carter explained that this project would have 94-97 rooms, depending on the final site plan. He thought this hotel was complementary. It was fun to work on, and they were excited about what they think it can do, helping both the community and the development group. He asked for the Council's support and approval to move forward to break ground this summer.
Several Council members commented that it looked good and complimented the team on the presentation. Mayor Peterson recalled that when he first came onto the Council, the Town was considering a museum as an anchor to bring additional people into the downtown area. This would have cost the Town $4 million, give or take. The Hampton Inn project would bring greater traffic for the restaurants and businesses without that expenditure. In fact, Hampton Inn would contribute $4 million to the town. They have talked to quite a few people over the years. This project is the one highest on the Mayor's list of compatible uses, and he thought it would be an enhancement to the town.
Mr. Orrico noted that this group has the resources to do this, so will not need to get financing. Vice Mayor John Crane said this is so much more refreshing than anything that has been considered before. The economic impact is much larger and will bring business to the restaurants and merchants daily. New people will be staying at the hotel. They will eat and walk around. The impact is all good. He thanked them for coming to Carefree.
Mr. Hatcher asked about the projected occupancy rate. Mr. Carter replied that with the events in Carefree and Cave Creek, and the business travelers, the occupancy rates were expected to be 85% during the high season and 64-68% during the off season. Vice Mayor Crane added that the summer numbers are critical. Boaters at the lakes, and the golfers, can stay overnight. Mr. Carter noted that Hampton Inn/Hilton has a worldwide reservation system that will deliver guests that they could not get on their own.
The motion for the Mayor to sign a development agreement with Hampton Inn/Hilton was unanimously approved.
https://vimeo.com/user18676056/review/316018072/87424be54e
Lyn Hitchon
Prepared by Carefree Truth
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Mr. Mitchell asked if the Council had any questions. Councilman Gene Orrico asked about the time frame and Mayor Les Peterson asked about the price points. Mr. Mitchell turned it back over to Mr. Carter to answer those questions. Mr. Carter said a feasibility study suggested that, like other Hampton Inns in the Valley, they could charge $175-$180 per night during the season and $140-$160 in the off season, depending on the time of year.
As to timing, they would ideally like to open in the middle to the 3rd week of September, 2020. The construction time frame would be 12-14 months. They would like to begin construction in July or August to meet that date. They would like time to work out the kinks that come with anything new, and be a "full running machine" by the Pumpkin Festival. They were looking for approval of the development agreement at the February Council meeting so they could move on to the Planning & Zoning (P&Z) Commission. They had made their application and were working with the Planning Director. They were waiting for comments so they could incorporate those into the plan. They would like to present the site plan to P&Z in March. If it is approved, they would present the final site plan to the Council in April. If that is approved, they would close on the ground the following week. Permits would take 6-8 weeks, then construction could begin.
Mr. Orrico asked if any preliminary work had been done on the site. Mr. Carter replied that a landscape inventory and a new survey had been done. The drainage and utilities would be finalized in the survey. A survey was done in 2006, but there have been changes in the terrain, so it is being updated.
Councilman Stephen Hatcher asked if the infrastructure is in place to absorb the wastewater. Mr. Carter said yes, that was all planned for in advance. Gary Neiss reminded the Council that more intensive development plans had been permitted on that site from a previous mixed use project. Each unit had laundry rooms. It was a more intensive use than what was being proposed now, from a wastewater perspective. Liberty Utilities, which provides the wastewater service, reviewed those plans in the past and approved them. This is less taxing to their system than the previous plans. Mr. Orrico noted that the previous project had 134 units.
Mr. Carter explained that this project would have 94-97 rooms, depending on the final site plan. He thought this hotel was complementary. It was fun to work on, and they were excited about what they think it can do, helping both the community and the development group. He asked for the Council's support and approval to move forward to break ground this summer.
Several Council members commented that it looked good and complimented the team on the presentation. Mayor Peterson recalled that when he first came onto the Council, the Town was considering a museum as an anchor to bring additional people into the downtown area. This would have cost the Town $4 million, give or take. The Hampton Inn project would bring greater traffic for the restaurants and businesses without that expenditure. In fact, Hampton Inn would contribute $4 million to the town. They have talked to quite a few people over the years. This project is the one highest on the Mayor's list of compatible uses, and he thought it would be an enhancement to the town.
Mr. Orrico noted that this group has the resources to do this, so will not need to get financing. Vice Mayor John Crane said this is so much more refreshing than anything that has been considered before. The economic impact is much larger and will bring business to the restaurants and merchants daily. New people will be staying at the hotel. They will eat and walk around. The impact is all good. He thanked them for coming to Carefree.
Mr. Hatcher asked about the projected occupancy rate. Mr. Carter replied that with the events in Carefree and Cave Creek, and the business travelers, the occupancy rates were expected to be 85% during the high season and 64-68% during the off season. Vice Mayor Crane added that the summer numbers are critical. Boaters at the lakes, and the golfers, can stay overnight. Mr. Carter noted that Hampton Inn/Hilton has a worldwide reservation system that will deliver guests that they could not get on their own.
The motion for the Mayor to sign a development agreement with Hampton Inn/Hilton was unanimously approved.
https://vimeo.com/user18676056/review/316018072/87424be54e
Lyn Hitchon
Prepared by Carefree Truth
Visit our website at www.carefreetruth2.com If you know anyone who would like to be added to the Carefree Truth email list, please have them contact me. Feel free to share Carefree Truth with others on your list.
Visit www.carefreeazbusinesses.com to see more info about businesses in Carefree. Please support our merchants.