In 2018, in close collaboration with nearby residents, the Town of Carefree rezoned the northeast corner of Carefree Highway and Cave Creek Roads from residential to commercial use to accommodate a planned neighborhood retail center. Since then, two developers evaluated the property. Both found the high cost of engineering and managing the wash, which bisects the middle of the site, to be a significant obstacle to development.
Recently, the property owner partnered with Diversified Partners, a highly successful developer with extensive experience in the Phoenix market, to move the project forward. While Diversified Partners also identified the wash as a barrier, they proposed a solution - a public-private partnership through a performance-based agreement with the Town. This agreement would allow the developer to receive a 49% portion of the sales tax revenue generated by the retail center for a period of 5 years. The Town would capture 51% of the generated sales tax revenue over those 5 years and then 100% of the revenue going forward. These funds would help offset the costs of relocating the wash while maximizing the site’s sales tax potential. The Town would garner revenue to support essential and expanding costs associated with public safety services and street maintenance.
The Town held two public Council meetings and one public workshop with the Economic Development Advisory Board to review and discuss the terms of the agreement. Videos of these meetings and the draft agreement were made available for residents to view and provide feedback. On the evening of Tuesday, November 12th, the Town Council reviewed and approved the agreement, 7 - 0. Leading up to the vote, the three newly elected, but yet to be seated Councilmembers were given access to the developer and Town Staff to better understand the agreement and have their questions answered. At the Town Council meeting they all expressed support for the agreement.
Watch Council Meeting
Next Steps...
The next step in the process will be the review of the site plan and design by the Development Review Board (DRB). This process will include a public meeting to review the site plan and design. Once the developer has completed the application requirements, this DRB review will be scheduled and published.
Thank you for your continued engagement and interest in this important development project.