Economic Development
Understanding the factors that drive the local economy's performance, and the constraints that limit future growth, is essential to managing it well. This chapter describes existing conditions, identifies anticipated changes, and establishes goals and action steps to sustain fiscal health and broaden economic opportunity.
SUMMARY OF THE CURRENT PLAN: Economic Development
- Fruit Heights had about $39.1 million in taxable sales in 2021. Sales grew about 10% a year from 2010 to 2021, faster than the county (7.4%) and the state (7.3%).
- Taxable sales per resident were $6,416 in 2021, the lowest of the eight communities and areas compared.
- About $217.7 million in resident spending leaves the city each year. That is roughly $1 million in lost local sales tax.
- The city captures only about 15% of the taxable sales expected for its population. Retail captures 11%.
- The biggest gaps are in vehicles, general merchandise, groceries, restaurants, and building materials. Online (“non-store”) retail is the largest source of the city’s taxable sales.
- The 2022 city property tax rate (0.001600) was the 3rd highest of 12 nearby cities. The school district accounts for about 61% of the total property tax bill.
- Residential property makes up over 90% of property value. Only about 57 acres are vacant, and just 3 acres of that is commercial.
- Land costs about $157,944 per acre, the 4th highest in Davis County and nearly three times the county average.
- Population is projected to reach about 7,883 by 2050. Regional growth is shifting west, toward Syracuse and West Point.
- The plan estimates the city could support about 37–43 acres of new commercial land. Expected development is neighborhood-scale.
- Building out the golf course and 400 North was estimated to produce a net city benefit of about $1.3 million in Year 1 and about $31 million over 20 years.
- Competition from Farmington and Layton, plus growing online shopping, limits large-scale retail.
CURRENT PLAN GOAL SUMMARY: Economic Development
1. Promote increased commercial development
- Allow for more residential development and population growth.
- Provide development incentives and remove barriers to entry.
- Promote niche markets that capture sales from surrounding communities.
- Promote other types of commercial development (industrial, tech, office).
2. Focus commercial development at the Golf Course and 400 North
- Pursue small neighborhood-scale retail shopping and restaurants.
- Concentrate commercial development in designated commercial zones to maintain small-town identity.
- Evaluate the costs and benefits of each proposed commercial development.
3. Use economic development financing tools
- Consider sales tax incentives case by case, only for major tax-generating retailers.
- Consider a revolving loan fund for façade and building upgrades in dilapidated areas.
- Tax increment financing, business improvement districts, and bonds are listed as options.
4. Reduce development-cost barriers
- Waive or reduce impact fees, use redevelopment areas to fund infrastructure, or allow developer data that may reduce fees.
Key Exhibits: Economic Development
Map 5.1 Competitive Market Sites
Map 5.2 Competitive Market Site Buffers
Map 2.3 Geologic Hazards
Map 2.4 Future Land Use
