Town staff told the Carefree Town Council on July 1 that work on the long‑planned “Northeast Corner” (Carefree Quarter) retail project is advancing but remains dependent on several third‑party approvals, financing milestones and the developer meeting a contractual build requirement. Economic development staff said the deal includes a condition precedent that the developer must build 60,000 square feet total by Dec. 31, 2026, or meet an alternate path of at least 38,000 square feet of retail or two anchor tenants shown on the approved site plan. If the condition precedent is met, an incentive period chosen by the developer begins and runs through June 30, 2027, with a possible automatic extension to that date if construction is underway and required leases exist.

The council was briefed on multiple outstanding dependencies that are not controlled by the town: a reissuance of a Certificate of Assured Water Supply from the Arizona Department of Water Resources, upgrades to a Liberty Utilities lift station (expected in 2026), and final right‑of‑way permits and coordination with the City of Scottsdale for off‑siteCarefree Highway work and a new traffic signal at the 56th Street intersection. Town staff also noted that the developer’s on‑site infrastructure submittals — including detailed plans for the planned wash relocation, grading, parking and landscaping — remain under review and that the town requires a corner art piece approval before issuing building permits.

The agreement with the property owner and developer includes development incentives and town concessions. Staff described those bargain terms as including a waiver of certain development fees (which would be payable if the developer fails to meet the condition precedent), a 49% reimbursement of construction‑related sales tax and a 49% reimbursement of sales tax generated for five years, and town acceptance of public improvements including the wash relocation. The town and developer also agreed to “enforced delay” provisions to extend deadlines for events outside either party’s control.

Council members repeatedly pressed for more transparency about signed tenant leases. Several councilmembers said developers had previously indicated multiple pending leases and that the council and public were owed clearer updates when leases are executed. Staff said the developer and property owner are sensitive about announcing tenants early because public disclosure can affect leasing negotiations and competition, but staff also said the town will continue to ask for lease information as it becomes available. Economic development staff said they are meeting regularly with the developer and will pass along tenant lists when developers are prepared to release them.

On technical site issues council members questioned whether the developer could begin earthwork such as the wash relocation immediately; town staff explained the developer is expected to submit a single set of construction documents for on‑site infrastructure (grading, wash relocation, parking and plant salvage) and that those elements are typically phased and implemented together rather than in isolation. The town has coordinated with Maricopa County Flood Control District staff for technical input on the wash relocation (a channel the town says can carry flows over 600 cubic feet per second) though formal flood district permits are not required for the project because the site is outside a mapped floodplain.

Council members and staff also discussed how off‑site water mains and sewer capacity affect the schedule. Carefree Water Company has approved the off‑site waterline extension and on‑site water lines for parcel A, but the developer must complete a waterline agreement and obtain ADWR concurrence on the transfer of assured water supply. Liberty Utilities must complete lift station upgrades and review the developer’s sewer plans; staff said the utility has indicated lift station upgrades are expected in 2026 but emphasized the town does not control that schedule.

Staff closed with a summary of other economic development efforts related to the town center — a facade program with three interested property owners, an August 18 open house about the future of the town hall property, merchant outreach, a circulation and parking study nearing a substantial draft, and stepped‑up enforcement of business licensing and certificate‑of‑occupancy requirements to limit storage and noncompliant uses. Councilmembers encouraged town staff to provide a clear timeline of the town’s own permit and review milestones so the council can see what the town is doing to support the project and where third‑party approvals remain the bottleneck.

The council did not take a formal action on the development item during the update; staff reported that site plan approval for parcel A was granted earlier and that the town will continue to track developer submittals and milestones.