Carefree’s next big shopping trip comes with an $11.6 million question: How much should the town share to turn a stubbornly undeveloped corner into a sales tax engine?
Craig’s Crossing is bringing that question into focus, along with a major grocery name. Mayor John Crane says both Whole Foods and Cold Beers & Cheeseburgers have signed a lease and Boot Barn is expected to join the lineup of tenants soon.
“This is a home run for us,” Crane says.
Scottsdale-based SimonCRE is developing the retail center at the northeast corner of Cave Creek Road and Carefree Highway, on Carefree’s southwestern edge. Empire Group of Companies owns the land, and Western Retail Advisors handles leasing.
Early reporting described a 120,000-square-foot project; and the final project clocks in at approximately 90,000 square feet.
At an Oct. 22 special meeting, the Town Council voted 6-1 to adopt a notice of intent to enter into a retail development tax incentive agreement. That action launched the required process; it did not approve the incentive. Crane said the council subsequently took up the development and maintenance agreements.
November 10th’s Town Council meeting saw the group approve a Development Agreement and Wash Maintenance Agreement between Simon CRE and the Town. It established agreements for the development of the 24 acres on the northeast corner of Carefree Highway and Cave Creek Road, the associated incentives, and the maintenance of the wash during the incentive period and after the incentive period.
The proposed package would provide up to $11.6 million toward eligible public infrastructure costs. Crane says that figure reflects improvements needed to make the project work: relocating a wash, adding a pedestrian path, improving Cave Creek Road, bringing in water and moving electrical infrastructure underground.
“That number, $11.6 million is a cap,” Crane adds. The draft agreement sets an $11.6 million combined cap on eligible tax reimbursements and conditional fee waivers. Those benefits depend on meeting the agreement’s requirements; the town is not guaranteeing an upfront payment.
Competitive bidding could bring the eligible cost lower. If costs climb, the ceiling stays put, he says.
Under the October draft, SimonCRE would receive 49% of qualifying town retail sales tax revenue and construction sales tax payments, plus conditional fee waivers. The retail incentive period would run 10 years, with a possible two-year extension. Reimbursements depend on meeting development requirements; the full amount is not guaranteed.
For Carefree, the stakes extend beyond grocery convenience. Crane says sales taxes supply roughly 75% of town revenue, and the municipality collects no property tax. He estimates the project could bring the town about $1 million annually during revenue sharing, rising to roughly $2 million afterward. Those are projections, not promised receipts.
That money could help cover rising costs for fire and emergency services, policing and roads. Meanwhile, the relocated wash would unlock buildable land and create an accessible walking trail with shade amenities for residents and visitors, Crane said.
After years of proposals, Carefree has recognizable tenants and a clearer financial framework. Now comes the work of turning leases and infrastructure plans into open doors, with approximately 15 total retail spaces in play at Craig’s Crossing.
Crane finishes, “It represents the kind of town we have – our brand. It represents an upscale brand, and that’s what Carefree is. We couldn’t have done better.”
Insider Takeaways
- Tenant watch: Whole Foods and Cold Beers & Cheeseburgers have signed leases, Crane says; Boot Barn is expected to join as a tenant, also.
- Incentive ceiling: $11.6 million is the maximum, with reimbursement tied to eligible improvements.
- Tax split: The draft rebates 49% of qualifying town sales taxes.
- Revenue potential: Crane projects approximately $1 million annually initially, roughly $2 million afterward.
- Public perk: Wash relocation includes an accessible pedestrian trail with planned shade amenities.
Visit Carefree’s development page for additional information.
