Town of Fountain Hills Economic Development Director Amanda Jacobs provided the Town Council with some positive news during her department report for the fourth quarter of the fiscal year just past (April through June 2023). Jacobs made her report at the council’s Aug. 22 regular meeting.

“I’m happy to report there are new storefronts opening that are filling in some of the (commercial) vacancies,” Jacobs said.

Jacobs led her information with an update regarding business attraction and retention. She reported that four new businesses had opened in town. Those include AZ Stone and Crystal Company on Parkview Avenue, Alpha Financial Nordic at Verde River and Avenue of the Fountains, Motor Vault Fountain Hills on Desert Vista and Snowee Ice Cream on Avenue of the Fountains.

Motor Vault is a venture that provides upscale vehicle storage in a private setting. Spaces are sold and the company website indicates that available space in Fountain Hills is sold out. Snowee Ice Cream is a business operated by the owners of Oka Sushi and is an expansion of the restaurant on Avenue of the Fountains and Verde River Drive.

Jacobs also noted an additional four businesses expected to open soon including Coffee Roasters on Shea Boulevard, Dutch Bros. on Palisades Boulevard, Above Board Charcuterie/a Graze Craze franchise on Avenue of the Fountains and Phoenix Cannabis Co., which is a new owner for the marijuana dispensary on Enterprise and Colony drives.

Jacobs said that business expansion and retention is not without challenges. She noted she has been working with the Chamber of Commerce regarding those efforts. The workforce is one of the major issues. She said the majority of employers in Fountain Hills are in the service industry, which creates the workforce issue.

“The average pay is $40,000 (annually) and it is difficult to retain employees who need to travel,” Jacobs said. She also noted that workforce housing for that income range is limited in Fountain Hills.

“This is something we will be working on over the next couple of years.”

In conjunction with the workforce housing issue is the fact that six major rental communities in town remain at more than 90% occupied. One exception is Four Peaks Vista Condos, which has a limited number that are available for rent, according to Jacobs.

“This is a reflection of the supply and demand issue,” she said.

The vacancy rate related to existing commercial properties remains difficult to track, according to Jacobs. There are two conflicting sources which reflect significant variance. However, she noted an improvement in office vacancy, which is significant. She said this is a national issue, as many businesses have adopted the work-from-home model used during the pandemic.

Jacobs reported the Economic Development Strategy document she has been working on has been presented to the Strategic Planning Advisory Commission and is expected to be before the council for consideration on Sept. 6.

The Fountain Hills Dark Sky Association has proven helpful to economic development efforts in the area of tourism, according to Jacobs. She credited DSA President Vicky Derksen with making contacts around the country to provide information about the Town’s International Dark Sky Community status and welcoming those wanting to hear more.

Other items related to tourism show a 66% hotel occupancy rate, a 44% increase in social media activity related to Fountain Hills with 32,450 unique visits to the Experience Fountain Hills website. The EarthCam live feed from Fountain Park received 1.3 million views during the past fiscal year.

Jacobs also shared the results of a marketing grant through Arizona State University. It shows that events in Fountain Hills attract about 44% of their visitors from the region. There are 32.7% locally and 23.5 % from out of state.