Russ Watts, president of development company Watts Enterprises, said he hopes to provide workforce housing for essential employees, but can’t afford to do so without a financial investment from Heber City.
The Celebration Workforce Community development is located near the Wasatch County Library and Wasatch High School. The 8.75-acre project would consist of 230 workforce housing units in the form of one-, two- and three-bedroom apartments, townhomes and flats.
Mountainlands Community Housing Trust would manage the community, guaranteeing the rental units are affordable to those making an average of 60-80% of the area median income, or $81,840 to $109,120 annually for a family of four.
Watts estimated that the project would require a deferral of more than $3 million in impact fees for up to 12 years to make the $35 million project financially feasible. The developer told the Heber City Council on Tuesday that the impact fees would be paid back with a 4% interest rate after the time period expires.
Impact fees are one-time charges by government entities on new developments. Heber City’s share of impact fees was estimated to be around $2 million. Watts’ estimate also included fees from the community-owned electric utility company, Heber Light & Power, the Wasatch Fire District and the Heber Valley Special Service District. Jason Glidden, executive director of Mountainlands Community Housing, said overcoming impact fees has been a hurdle for affordable housing developments.
“The impact fees are going up tremendously high very quickly, not only on projects like this, but on townhomes. I’ve seen a 50% increase over the last year,” he said.
The City Council also voted to increase impact fees in November, with changes going into effect in February. Heber City engineer Russ Funk said the impact fees per typical residential unit in a development have gone up from $13,688 to $19,305.
Funk said he was “glad” that the impact fees would be deferred instead of waived, but that there was “risk” involved. Funk explained that the city relies on money generated from impact fees as part of its revenue stream. Officials would have to take out a loan, which may have a higher interest rate than the 4% Watts Enterprises agreed to pay back, if Heber City needed the $2 million in impact fees generated by Celebration Housing Community.
Still, city councilors and staff members were supportive of the affordable housing project.
City Councilor Mike Johnston said the project would be helpful for those early in their careers, and co-councilor Aaron Cheatwood added that the deed-restricted units would allow renters to save for future homes.
Heber City Manager Matt Brower said, “If you were to invest in an affordable housing project, this is probably the one to consider due to its location — being in downtown, close to the transportation, close to the schools, close to the shopping — (and) the fact that you’re getting a 60% (AMI), potentially.”
The City Council voted unanimously to support the project’s deferment of impact fees, with the stipulation that the exact monetary numbers in that agreement would have to be updated with city staff and brought before the council again for final approval.
Watts estimated construction on the Celebration Workforce Community would begin in Spring 2027.
The Celebration Workforce Community was first brought to the City Council in April 2024 and has been in the works since.
Watts has been in ongoing discussions about the project with various employers, including the Wasatch County School District, the Wasatch Fire District, the Heber City Police Department and Intermountain Healthcare.
Additionally, the Wasatch Housing Authority has agreed to contribute up to $750,000 to the development, and the school district will provide land for shared parking between Wasatch High School and the development.
Watts Enterprises has operated out of the Heber Valley for 25 years and created developments like Ranch Landing Condos and Prestige Senior Housing. Watts Enterprises has built workforce housing developments in Wyoming and Idaho, but the Celebration Workforce Community will be its first in the Heber Valley. Watts said the idea for the community came about because 35% of the development group’s workforce has to commute.
“We want you to work here. We want you to live here. We want you to be part of this society and community, and we want you to save money,” Watts said.