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Heber City to Defer Over $3 Million in Impact Fees for Workforce Housing

Heber City plans to defer over $3 million in impact fees for a workforce housing project aimed at essential employees.

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Heber City is set to defer more than $3 million in impact fees for the Celebration Workforce Community housing project, aimed at providing affordable housing options for essential employees. Development company Watts Enterprises is spearheading the project, which is located near the Wasatch County Library and Wasatch High School on an 8.75-acre site. The development will feature 230 workforce housing units, including one-, two-, and three-bedroom apartments, townhomes, and flats. Mountainland Community Housing Trust will manage the community, ensuring that the rental units remain affordable for families earning between 60% and 80% of the area median income, approximately $81,840 to $109,120 annually for a family of four. To facilitate the $35 million project, Watts Enterprises has requested a deferral of impact fees for up to 12 years, which they intend to repay with a 4% interest rate once the deferral period concludes. The estimated impact fees from Heber City are around $2 million, including additional fees from Heber Light & Power, the Wasatch Fire District, and the Heber Valley Special Service District. Jason Glidden, the executive director of Mountainlands Community Housing, noted that impact fees have been a significant barrier for affordable housing developments, citing a 50% increase in such fees over the past year. In November, the City Council voted to increase impact fees, set to take effect in February, raising the cost per typical residential unit from $13,688 to $19,305. Heber City engineer Russ Funk expressed support for deferring the impact fees, acknowledging the associated risks, as the city relies on this revenue stream. The City Council unanimously backed the project’s deferment, contingent upon updating the financial agreement details before final approval. Construction on the Celebration Workforce Community is estimated to begin in Spring 2027. The project was first introduced to the City Council in April 2024 and has involved discussions with various local employers. The Wasatch Housing Authority has pledged up to $750,000 for the development, and the school district will provide land for shared parking. Watts Enterprises, a company with 25 years of experience in the Heber Valley, has previously developed projects in Wyoming and Idaho but considers this workforce housing initiative its first in the local area.