"Thomas Jefferson said a democracy is dependent on an informed citizenry. I don't care whether it sounds corny or not. It's the truth." -Jim Lehrer
Carefree Truth
Issue #986, January 31, 2022
Issue #986, January 31, 2022
Steve Prokopek explained that 13 months ago, the 24 month economic development business plan was created. Everything goes back to the "4 Ps" of marketing which are product, price, position, and promotion.
Price is the value proposition in the context of the community. Product development is another big piece, and is more than just bringing new businesses into the community. This includes issues like amending the General Plan (GP) for the 21 acre parcel on the N.W. corner of Tom Darlington Drive and Carefree Highway, and the Town Center. It's doing an evaluative process about how Carefree can make this the best product it can be, because if you have a great product the others components start to fall together.
It is also important to understand the long term financial sustainability of a community as you look over a 10, 20, 30 year horizon; that you look at how to pay the bills. The trend is that the one time money from construction sales tax revenue will dry up as the community reaches build-out. A strong recurring revenue model that allows Carefree to maximize the sales tax receipts is vital, because that will be the majority revenue stream for how the Town funds its services. Building a destination and a "stay" environment will help support the focal flavor of the Town Center. Mr. Prokopek gave kudos to Gary, Stacey, and everyone else who helped bring the Hampton Inn into the downtown. Civana, Spirit in the Desert, and potentially the 45 acre parcel of State land near the airport are other components of that priority too. The recent GP amendment for the 21 acres on the N.W. corner of Carefree Highway and Tom Darlington Drive will be moving ahead to the zoning process next, in order to bring in a quality developer. Carefree wants to compliment the unique businesses that we have here. That has been the focus of the plans and strategies over the past 12 months.
When Mr. Prokopek was hired, his first priority was to bolster the relationships with the property and business owners. Helping the businesses to get the pandemic help that was available set the table for relationship building with about 80-85% of those people. He felt that the relationships have become very positive. They seem to be comfortable coming into the offices at Town Hall. Some like, Don Little who owns the Black Mountain Cafe, are even starting second businesses in Carefree.
The Town Center signage plan has progressed to include a parking and circulation plan. The Town had received so many different requests from the community about what they want to see and what is important to them. Safety was #1, with being able to navigate across Tom Darlington and Cave Creek via the crosswalks, which is part of the circulation plan. The infrastructure connecting the neighborhoods to Town Center, and getting around Town Center were issues that needed to be addressed. Signage and parking are also components of this. Carefree has a "parking planning issue" that the Town needs to be addressed by letting people know where it is and making it easily accessible by utilizing Tom Darlington Drive and Cave Creek Road as part of that. It is also important to make it easy and pleasurable for people to walk around the downtown.
Funding these revitalization projects and investment into the Town Center spawned meetings with the Arizona Association folks, a group throughout the state who have worked on downtown revitalizations. All of them were adamant that the only way to accomplish this is with the formation of a Redevelopment District which provides the tools and the State legislation to do the things that cannot be done outside of a redevelopment area. The Town contacted the property owners and were able to get the boundary approved for the redevelopment area. The Town is now in the process of the market update, which will help get to the land use update that will be part of the Downtown Master Plan.
The key economic development metrics from the Hampton Inn and from a proposed resort on the N.W. corner of Carefree Highway and Tom Darlington Drive are as follows: The one time sales tax revenue from the Hampton Inn will be about $450,000. If they can get opened by February or March, the 2022 Annual Direct Sales Tax is anticipated to be $180,000. It is anticipated to be $240,000 annually after that. The estimated 2022 Indirect Sales Tax is anticipated to be $65,000 and to be $85,000 annually after that. The one time sales tax revenue from a resort development on the N.W. corner is $920,000. Annual Direct Sales Tax is anticipated to be $600,000. The estimated Indirect Sales Tax is anticipated to be $125,000. The anticipated revenues for the proposed resort were adjusted downward because the neighborhood residents rejected the inclusion of neighborhood type retail, and Carefree wanted it to fit in better with the neighborhood.
Major proposed changes to the GP are the consideration of the 45 acre parcel of State land and the Downtown Redevelopment District. These will be the primary focus. The Planning & Zoning Commissioners (P&Z) will be appointed as the Economic Development Board. P&Z is legally obligated to review and make recommendations for both the GP update and the Redevelopment Area Plan. The current members of the P&Z provide a diverse balance for considering these primary issues. These issues will involve a robust community engagement process which will include community workshops with P&Z, public outreach to local HOAs, adjacent neighborhoods, and the community at large. Open houses will be provided for the public in the Council Chambers and the Pavilion. These will include the hired consultants. This opens up the conversation for more quality of life type infrastructure, such as providing places to ride and to park bikes. Talks will also be held with the property and business owners about what types of businesses they would like to see and that they think would be a good fit.
Mayor Les Peterson noted that the Town Hall offices are on Class A property. The building is on Cave Creek Road and fronts on the sundial circle. He felt that the Town Hall should be on a Class B property, in the downtown but not in a prime retail location.
Councilman Stephen Hatcher asked if the driver for relocating the Town Hall offices was that more space was needed, or was it that an asset could be released that would bring more value to the town by utilizing it as a prime retail space. Mr. Prokopek replied that both those issues are driving it. This location could be a keystone for bringing in more investment, and they are running out of office space. Mr. Hatcher asked if there were buildings in mind that could provide the additional space needed. Mr. Prokopek said that is a challenge. One of the buildings under consideration is by the Water Company and Public Works. The Town already has assets over there, and there are adjacent buildings in the Mariachi Plaza. There is a second story on the existing Council Chambers, or a possibility of building something in the large parking lot behind the Chambers. Land swap opportunities might also exist. Those are just ideas at this point. Mr. Hatcher said it was probably impossible, but suggested building a second story onto the Post Office Building, which is large and centrally located. Mr. Prokopek replied that nothing is impossible; it just takes money. But he said it is important to keep our creative minds open as we go through these processes.
Vice Mayor John Crane asked about the schedule for the GP update. Stacey Bridge-Denzak said it would begin in 2022. She explained that they plan to bring on a consultant to help lead Carefree through the process, working with the staff. She predicted that it would start in May or June and go on for about a year. When completed, it goes out to the public for a vote, basically by the middle of next year.
Mr. Hatcher questioned the term "absorption analysis" in the document. Mr. Prokopek explained that absorption analysis is done in the marketing update and it looks at how much commercial, based on the growth we have, that the town can absorb over time. For instance, if Carefree has 10-20% vacancies, and the Town is looking to do some things that will add on some more commercial, can we absorb the commercial or is the town just shifting things around and playing a shell game with vacant space. Some of the spaces are more difficult to fill, such as the downstairs of the Los Portales Mall, and those issues need to be worked through. This is why it's important to update the marketing analysis about every 5 years. That will be how Carefree sets the stage for talking about the revitalization. The consultant will evaluate all the planning efforts, and how and if they are grounded in reality. This will be evaluated from the baseline point from the beginning to the end of the process.
The motion to move ahead with the economic development plan presented by Steve Prokopek was unanimously approved.
https://vimeo.com/662504169
Lyn Hitchon
Prepared by Carefree Truth
Copyrighted
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.
Price is the value proposition in the context of the community. Product development is another big piece, and is more than just bringing new businesses into the community. This includes issues like amending the General Plan (GP) for the 21 acre parcel on the N.W. corner of Tom Darlington Drive and Carefree Highway, and the Town Center. It's doing an evaluative process about how Carefree can make this the best product it can be, because if you have a great product the others components start to fall together.
It is also important to understand the long term financial sustainability of a community as you look over a 10, 20, 30 year horizon; that you look at how to pay the bills. The trend is that the one time money from construction sales tax revenue will dry up as the community reaches build-out. A strong recurring revenue model that allows Carefree to maximize the sales tax receipts is vital, because that will be the majority revenue stream for how the Town funds its services. Building a destination and a "stay" environment will help support the focal flavor of the Town Center. Mr. Prokopek gave kudos to Gary, Stacey, and everyone else who helped bring the Hampton Inn into the downtown. Civana, Spirit in the Desert, and potentially the 45 acre parcel of State land near the airport are other components of that priority too. The recent GP amendment for the 21 acres on the N.W. corner of Carefree Highway and Tom Darlington Drive will be moving ahead to the zoning process next, in order to bring in a quality developer. Carefree wants to compliment the unique businesses that we have here. That has been the focus of the plans and strategies over the past 12 months.
When Mr. Prokopek was hired, his first priority was to bolster the relationships with the property and business owners. Helping the businesses to get the pandemic help that was available set the table for relationship building with about 80-85% of those people. He felt that the relationships have become very positive. They seem to be comfortable coming into the offices at Town Hall. Some like, Don Little who owns the Black Mountain Cafe, are even starting second businesses in Carefree.
The Town Center signage plan has progressed to include a parking and circulation plan. The Town had received so many different requests from the community about what they want to see and what is important to them. Safety was #1, with being able to navigate across Tom Darlington and Cave Creek via the crosswalks, which is part of the circulation plan. The infrastructure connecting the neighborhoods to Town Center, and getting around Town Center were issues that needed to be addressed. Signage and parking are also components of this. Carefree has a "parking planning issue" that the Town needs to be addressed by letting people know where it is and making it easily accessible by utilizing Tom Darlington Drive and Cave Creek Road as part of that. It is also important to make it easy and pleasurable for people to walk around the downtown.
Funding these revitalization projects and investment into the Town Center spawned meetings with the Arizona Association folks, a group throughout the state who have worked on downtown revitalizations. All of them were adamant that the only way to accomplish this is with the formation of a Redevelopment District which provides the tools and the State legislation to do the things that cannot be done outside of a redevelopment area. The Town contacted the property owners and were able to get the boundary approved for the redevelopment area. The Town is now in the process of the market update, which will help get to the land use update that will be part of the Downtown Master Plan.
The key economic development metrics from the Hampton Inn and from a proposed resort on the N.W. corner of Carefree Highway and Tom Darlington Drive are as follows: The one time sales tax revenue from the Hampton Inn will be about $450,000. If they can get opened by February or March, the 2022 Annual Direct Sales Tax is anticipated to be $180,000. It is anticipated to be $240,000 annually after that. The estimated 2022 Indirect Sales Tax is anticipated to be $65,000 and to be $85,000 annually after that. The one time sales tax revenue from a resort development on the N.W. corner is $920,000. Annual Direct Sales Tax is anticipated to be $600,000. The estimated Indirect Sales Tax is anticipated to be $125,000. The anticipated revenues for the proposed resort were adjusted downward because the neighborhood residents rejected the inclusion of neighborhood type retail, and Carefree wanted it to fit in better with the neighborhood.
Major proposed changes to the GP are the consideration of the 45 acre parcel of State land and the Downtown Redevelopment District. These will be the primary focus. The Planning & Zoning Commissioners (P&Z) will be appointed as the Economic Development Board. P&Z is legally obligated to review and make recommendations for both the GP update and the Redevelopment Area Plan. The current members of the P&Z provide a diverse balance for considering these primary issues. These issues will involve a robust community engagement process which will include community workshops with P&Z, public outreach to local HOAs, adjacent neighborhoods, and the community at large. Open houses will be provided for the public in the Council Chambers and the Pavilion. These will include the hired consultants. This opens up the conversation for more quality of life type infrastructure, such as providing places to ride and to park bikes. Talks will also be held with the property and business owners about what types of businesses they would like to see and that they think would be a good fit.
Mayor Les Peterson noted that the Town Hall offices are on Class A property. The building is on Cave Creek Road and fronts on the sundial circle. He felt that the Town Hall should be on a Class B property, in the downtown but not in a prime retail location.
Councilman Stephen Hatcher asked if the driver for relocating the Town Hall offices was that more space was needed, or was it that an asset could be released that would bring more value to the town by utilizing it as a prime retail space. Mr. Prokopek replied that both those issues are driving it. This location could be a keystone for bringing in more investment, and they are running out of office space. Mr. Hatcher asked if there were buildings in mind that could provide the additional space needed. Mr. Prokopek said that is a challenge. One of the buildings under consideration is by the Water Company and Public Works. The Town already has assets over there, and there are adjacent buildings in the Mariachi Plaza. There is a second story on the existing Council Chambers, or a possibility of building something in the large parking lot behind the Chambers. Land swap opportunities might also exist. Those are just ideas at this point. Mr. Hatcher said it was probably impossible, but suggested building a second story onto the Post Office Building, which is large and centrally located. Mr. Prokopek replied that nothing is impossible; it just takes money. But he said it is important to keep our creative minds open as we go through these processes.
Vice Mayor John Crane asked about the schedule for the GP update. Stacey Bridge-Denzak said it would begin in 2022. She explained that they plan to bring on a consultant to help lead Carefree through the process, working with the staff. She predicted that it would start in May or June and go on for about a year. When completed, it goes out to the public for a vote, basically by the middle of next year.
Mr. Hatcher questioned the term "absorption analysis" in the document. Mr. Prokopek explained that absorption analysis is done in the marketing update and it looks at how much commercial, based on the growth we have, that the town can absorb over time. For instance, if Carefree has 10-20% vacancies, and the Town is looking to do some things that will add on some more commercial, can we absorb the commercial or is the town just shifting things around and playing a shell game with vacant space. Some of the spaces are more difficult to fill, such as the downstairs of the Los Portales Mall, and those issues need to be worked through. This is why it's important to update the marketing analysis about every 5 years. That will be how Carefree sets the stage for talking about the revitalization. The consultant will evaluate all the planning efforts, and how and if they are grounded in reality. This will be evaluated from the baseline point from the beginning to the end of the process.
The motion to move ahead with the economic development plan presented by Steve Prokopek was unanimously approved.
https://vimeo.com/662504169
Lyn Hitchon
Prepared by Carefree Truth
Copyrighted
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.