Carefree Truth
Issue #784, November 4, 2019
Mayor Les Peterson said there were many discussions among committee members Councilwoman Cheryl Kroyer, Vice Mayor John Crane, Town Administrator Gary Neiss, and he while generating the 2019/20 Marketing Plan document. Marketing Director Beth Renfro assisted by supplying event cost numbers.
Much of the Plan flowed from the 2015/16 Long Range Financial Plan, when the Town was forced to consider what had changed from the past. They looked at successes and failures, and examined modifications. Records over the past 10 years showed that construction sales tax revenue played a major role, generating approximately $1 million a year over the past 30 years. However, Carefree is reaching build-out, there was an economic downturn, and the State Legislature has been changing the laws. While municipalities get the sales tax revenue from new home sales, they no longer get that revenue from remodels costing less than $250,000. Much of the past revenue received from construction sales tax will no longer be available in the future. Carefree does not impose a local property tax on real estate, so we are heavily dependent on sales tax revenue.
Because of this, a new marketing strategy was developed involving festivals and fairs in the downtown area. In 2010/11, there was an expansion of the special events in the downtown area. This strategy was adopted in the hope that the events would generate revenue in and of themselves as well as stimulating the local businesses. However, this created parking problems for our local merchants. The Town wants the Carefree merchants to flourish, so needed to find a balance.
Between 2007 and 2016, retail revenue remained relatively flat. Lowe's, CVS, Bashas' and Ace, none of which are in the downtown area affected by the festivals, generated 80% of the sales tax revenue during that period. It was hoped that the festivals would positively impact the restaurants. While the service businesses are treasured, businesses must sell taxable goods in order to generate revenue for the Town, which is also a business.
The Town needed to work on economic development, keeping the existing businesses and encouraging new businesses to locate in Carefree. In 2015, Carefree implemented a strategic shift in marketing. A Marketing Director was hired. Marketing planning and budgetary adjustments were made using the cost recovery approach. The Town developed signature proprietary events such as the Enchanted Garden Pumpkin Festival, as opposed to multiple craft fairs. A digital media imprint was created to give the Town a more significant online presence.
It is difficult to tell what events are most successful in generating sales tax revenue because the sales tax goes directly to the state, then eventually is returned to the municipalities. The marketing budget rose, but so did the recoverable amounts. It was determined that the Town needed to do more "impactful events". The Pumpkin Festival broke through the clutter, and Carefree is now known for this event. Reducing the number of events also helped with the parking issues. Businesses like Keeler's Steakhouse, the Hampton Inn, and Civana expressed interest after seeing the number of people who would to come to Carefree for "image creating" events like the Pumpkin Festival.
Councilwoman Cheryl Kroyer said the Town began creating events because there were no draws to bring visitors to Carefree. The success of events like the Pumpkin Festival brought awareness of the town. In 2019/20, Carefree will continue to develop and support signature events, and will support and cultivate partnerships with town businesses. Community oriented events for our residents will help reinforce that Carefree is a desirable place to live, work, dine, shop and play.
Carefree is now reaping the success of these events. We are seeing the Hampton Inn, the new town homes, more restaurants and galleries, etc. All this should encourage more new businesses to locate here. Now, Carefree must continue evolving. This will be a year of transition, moving out of event production. In 2 years, the Town will not be running the Pumpkin Festival, which is transitioning over to Villafane Studios.
This year, the Town is taking a 3 pronged approach to Town events. Along with the Pumpkin Festival, Carefree is looking at Christmas and at expanding Sights & Sounds.
Rather than making Christmas into another huge event, it will be more community oriented. The first weekend of December will start out with carolers in the Pavilion, moving to the sundial for the Christmas Tree Lighting Ceremony with Santa, then back to the Pavilion for the movie "Elf". The Town will supply popcorn and hot chocolate. On Saturday there will be Breakfast with Santa, served by the firemen. Rural/Metro will collect toys and food for the Foothills Food Bank. On Sunday there will be an ecumenical service with a couple of local pastors in the Pavilion, after which cookies, hot chocolate, and coffee will be served. Attendees will be reminded that the Christmas season is a time of caring and sharing. Collection boxes will be placed in stores and restaurants to benefit the Foothills Caring Corps, and an angel tree will be erected in Town Hall where people can pick up suggestions about what the elderly and disabled in the area need. The holiday season will culminate with the celebration of Chanukah, which has been done for the past 2 years and has been very well received.
Sights & Sounds in the Gardens will extend the season into April and May. There will be more artists and musicians, along with 2 big concerts. The Town is exploring getting the Ballet and Symphony up here to reinforce that Carefree is an arts and lifestyle community. The Block Party was not as successful the second year as it was the first. Last year it was combined with Civana's drone show. It was a nice event and the hope is that it will be repeated annually at Civana. Non Town sponsored events include the 3 Thunderbird Artists shows, 1st Friday Art Walks, Restaurant Week in the fall and spring, and the Block Party at Civana. There will be lots happening in town on the weekends.
There has been improved communications with the businesses in the last few years. Business Breakfasts have been held, where the merchants meet with Council and staff members to discuss issues and solutions. The new Town website includes a section that offers free listings to Carefree businesses, and connects back to the businesses individual websites. Businesses have been offered free space on the light posts to place banners, and it is being utilized widely. There is monthly digital communication with updates.
Signage has been done in a piecemeal fashion in the past. The Town is in the process of hiring a sign company to generate a signage Master Plan, part of which will be to direct people to the businesses once they are in the downtown. One possibility is a digital sign within the Pavilion for people to access business locations and restaurant menus.
A 5 year marketing plan will begin being developed, starting in January, envisioning Carefree's future that includes investigating solutions for issues affecting the town's businesses. The plan will be flexible, making adjustments as Carefree continues to evolve. With a new hotel and town homes in the downtown, Carefree will no longer be solely event driven. Carefree has art, culinary, lifestyle, and natural beauty. But it needs to figure out what makes the town unique, and how to market that.
Mayor Peterson underscored the point that the future will have a heavy component of business associations working together and with the Town to achieve common objectives. Vice Mayor John Crane noted that this marketing plan provides a great foundation from which to work. It's a place where all can speak. The 2019/20 marketing plan is posted on the Carefree website where anyone can see it, ask questions, and make suggestions. A 5 year marketing plan provides an opportunity to better control the town's destiny and to be aware of economic development. Ms. Kroyer added that when people have come forward with suggestions it's been hard to know if they are appropriate and will work. Once a firm plan is in place, ideas can better be evaluated to see if they are on target strategically in order to optimize the resources available in our small town.
Mayor Peterson said they would continue to track the numbers to see what approaches work to achieve the objectives. Councilman Mike Krahe noted that they have always talked about economic development, and they now have a compelling case. People are paying attention to who and what we are. Carefree is seeing the economic development capability beginning to bubble. It is really exciting because that's the economic engine. Councilman Vince D'Aliesio suggested that residents talk to the Town staff members with any ideas and input. Staff members have been here longer than anyone on the Council. That's what he did before being elected to the Council.
The 2019/20 Marketing Plan was unanimously accepted.
https://vimeo.com/364427554
Lyn Hitchon
Prepared by Carefree Truth
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