Looking back on a year filled with uncertainty about the return of COVID-era lockdowns and challenges faced by the business community including labor shortages, supply chain disruptions and struggles combating the impact of inflation, 2022 has also uncovered many strengths and opportunities that are crucial for the years ahead.

The Times has compiled the strengths, weaknesses, threats and opportunities that the Fountain Hills business community faced this year. The hope is that readers will find that despite the challenges that local businesses face, on balance, Fountain Hills is geared up for a strong year filled with opportunities for growth.

Strengths

At the start of 2022, the Town expected $16.6 million in transaction privilege tax (commonly referred to as TPT, which is a tax on vendors for the privilege of doing business in Fountain Hills. TPT is not to be confused with sales tax, which are taxes on the sale of goods and services). With a growing business footprint in Fountain Hills, the Town ended its fiscal year collecting $17.7 million in TPT, signaling a 6.6% gain compared to its initial target.

“A number of businesses in our key industries, financial, healthcare, housing, restaurant and retail made the decision to invest in Fountain Hills,” said Town Economic Development Director Amanda Jacobs. “Some of those businesses include Atticus Books & Music, Havenly, Honor Health Primary and Urgent Care, Manny’s at Park Place, Mathnasium, TDC Financial and Veeta’s Vegan to name a few.”

Nearing the six-month mark of the 2023 fiscal year on Dec. 31, Jacobs and the Town’s Chief Financial Officer, David Pock, have determined that 93.4% of their six-month sales tax budget has been collected. By the time December’s sales tax figures are reported, Pock expects to be over their expected six-month collection amount by roughly 10%, signaling a strong start for local commerce.

To meet growing demand for their services, local businesses like Parkview Tap House and Fountain Hills Physical Therapy decided to physically expand their businesses in 2022, while others chose to rebrand, including Papaya'z and Pietro’s/Farrarese restaurant.

Several partnerships were formed in 2022 to meet the needs of the community including P39 CBD and Aesthetic Elegance and Wellness, who organized a charity fundraiser for A New Leaf women’s shelter, while BOGO Promotions and Promo Scout partnered to fill a growing need for marketing material in Fountain Hills.

An exciting and unexpected collaboration came in the form of Chill Boutique and the River of Time Museum & Exploration Center, which kicked off a year-long series of stylish, educational events on the theme of conscious consumption.

As the pandemic loomed in recent years, many local businesses were formed at home.

Lash a go-go, a local eyelash salon on the Avenue, started as a lash studio on wheels. With mask mandates in place, the concept behind their mobile lash studio was, “When you talk to somebody, you can’t see their face and smile, but you can see their eyes.”

What started as a homemade hydroponic garden inside their bonus room, Jeremy and Jill Keefe now run Fountain Hills’ own independent grocery store, Good Living Greens. P39 CBD also began at home, selling a total of eight products at pop-up shops around Arizona. In August, they moved to the Avenue with over 70 products to choose from, happy to call Fountain Hills their new home.

“It has always been our goal to create this town pride and this synergistic, collaborative movement so that we're all working together,” said Chamber President Betsy LaVoie, who is entering the new year with an all-time high of 543 Chamber memberships.

124 of those memberships were added just this year.

“It goes to show that our local business community is thriving,” LaVoie said.

As evidence of a strong business community, the number of major milestones was off the charts in 2022, with many businesses celebrating 20-, 25- and 30-year anniversaries. Business titans like Phyliss Kern of Kern Realty and Yvonne Wyman of Progressive Floor Coverings dba Fantasia Interiors celebrated 40 years of business.

To top off the year, all heads bowed as the Town’s oldest established business under the same ownership of Martin Dawson reached 50 years of business.

“People know what they’re getting,” Jacobs said. “They know the brand, they know the type of service that Fountain Hills will deliver on.”

Weaknesses

Fountain Hills kryptonite is personified in the roughly 10,000 people who leave Town for more temperate summer climates.

“We’re not unique that we have a transient population, LaVoie said. “Flagstaff, Mesa, Scottsdale, Phoenix. They all have a transient population, but because our population is so small, that’s the difference. So, when we see a third of our population leave…we feel it more than any other metro city.”

Geographically situated in a way that bypasses the hustle and bustle of the Valley while losing out on essential tourism and commerce is a major vulnerability for the business community.

“Our residents can go to Ace Hardware right here, support local, spend local, or go 10 minutes further and go to Home Depot,” LaVoie added. “You don’t blame ACE. They’re doing exactly what they should be doing…but it’s harder for our businesses here. That’s why support local programming is so vital.”

Threats

Amanda Jacobs cites labor shortages as the year’s menace in Fountain Hills, one which the entire nation is experiencing. Citing the U.S. Chamber of Commerce, Jacobs said an increase in savings rates throughout the country is a major reason for such shortages.

“During the pandemic, some people received unemployment benefits and stimulus checks and made more money on unemployment than they did while working,” she said. “Some people have chosen early retirements, while some resigned from their jobs to start their own businesses.”

Jacobs added that finding childcare is an additional hurdle that workers face as those who are willing and able to work are having a difficult time finding proper care for their children.

Opportunities

A new initiative between the Town and the Chamber of Commerce entitled the Business Retention and Expansion Program (BREP) focuses on local businesses and seeks out areas for improvement to spur economic growth.

With a plan to meet with two local businesses per week, Jacobs, LaVoie and an elected official make their way around Town, meeting local business owners to better understand the challenges they face.

Other opportunities for growth include expanded stakeholder groups including The Avenue Merchants Association (TAMA), which aims to increase commercial activity along the Avenue of the Fountains and Young Entrepreneur, which, inspired by the work of 15-year-old business owner Jakob Gerdy, supports local youth in entrepreneurship.

According to Jacobs, the Town applied and was awarded over $300,000 in grant funding from the Arizona Office of Tourism, Fort McDowell Yavapai Nation and Salt River Pima-Maricopa Indian Community, allowing an opportunity to implement marketing strategies to promote the Town and its businesses.

Since first impressions are important, the Town is also updating its public image with a new tourism logo, visitor guide, Town website and community brand.

“The town-wide brand is really to tap into new businesses and new residents,” Jacobs said. “Folks who are already here, they know Fountain Hills and they've picked Fountain Hills for a reason. Now it's, ‘How can we modify and have a consistent brand that Fountain Hills is known for?’”

In January, the Town and its stakeholders including many business owners will assemble a strategic plan to guide economic development for the next two to five years.

“2023 looks promising for economic growth,” Jacobs says. “The Town has had the opportunity to meet with several property owners who are looking to grow and expand in Fountain Hills.”

As the Town receives formal plan submittals, those projects will become known. For now, Jacobs and LaVoie said the best way to support local businesses is to shop local and be kind to workers; it’s tough to know what kind of challenges they faced this year.