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Economic development challenge

Posted 8/28/13

The Town of Fountain Hills has a vision for economic development – a plan adopted by the Town Council earlier this year provides the blueprint – and as the economy improves it is hoped this will …

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Economic development challenge

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The Town of Fountain Hills has a vision for economic development – a plan adopted by the Town Council earlier this year provides the blueprint – and as the economy improves it is hoped this will result in a vibrant business environment here.

However, reality can occasionally conflict with vision and make even the most promising enterprise challenging.

Prevco Subsea Housings, LLC, has been in Fountain Hills since 1999, a small high-tech manufacturing company that few people, outside of its handful of employees, even knew was here.

New opportunities in defense, and particularly the oil and gas industry, have created a demand for Prevco products and a need to expand beyond the space they are using.

“This is a classic example of expansion and retention,” Town Manager Ken Buchanan said. “We look at what is here and try to expand it here.

“The idea is to create more living-wage jobs with quality industry.”

It sounds like a perfect match, the type of small high-tech manufacturing the town wants to promote, and a business that wants to be here.

But things are rarely so simple.

Prevco President John Head looked into expanding in place with an idea to purchase the building they were in, but a financing conflict between asking price and appraisal scuttled that plan.

Head next looked at purchasing property on Desert Vista where a building sat empty with additional space on the lot.

The plan was to renovate the existing building and add a 10,000-square-foot manufacturing facility.

The town worked with Head toward rezoning the property to meet his needs, but issues regarding the condition of the existing building, a Sanitary District pump station just a few feet off the property and overhead power lines caused Head to reconsider that plan.

Residents of a nearby residential neighborhood also expressed concern about the plan.

At this point Head tells The Times he is continuing to look for the right fit to expand his operation in Fountain Hills.

He lives here and started the company in his garage.

Buchanan said the town will and is doing everything within its authority to assist, but he noted these are the type of challenges the town will face in implementing its economic development plan.

Pursuing a plan

Economic development is a priority for Fountain Hills and, according to Buchanan, there are several ongoing projects to that end.

The town is advertising a request for proposals for an economic development specialist. This would be someone working part-time on contract and doing a lot of the research and leg work to support Buchanan in assisting with requests from businesses.

It is expected this position would be filled by early October.

The town has also retained a commercial real estate firm, Horizon, to bring in potential businesses to explore opportunities in Fountain Hills.

“They are doing what they are supposed to be doing in working with their contacts,” Buchanan said of Horizon.

As the Prevco case points out, however, there are still challenges even for those who have a great interest in the community.

Finding the right property in the right location can be difficult in a community where supply may be limited.

The town is working to complete a property inventory as well as related information that can be passed on to business interests.

“This is not just about the Technology and Laser (drives) area,” Buchanan said. “We are working on what is available along Saguaro, Shea and in the downtown.”

The town wants to bring in more businesses that expand the daytime population, and possibly entice some employees to make their home here.

“We want people like Prevco, Concept Development Corp. and Brokers Alliance,” Buchanan said.

“We don’t have the classic economic development opportunities. We are lacking in buildings and land.

“We have the quality of life; that is what works for us. It’s important to work with these existing businesses to make sure they stay here.”