Economic report to Orem City Council shows building boom but sluggish retail sector
During a work session Tuesday, the Orem City Council received a report on the economic development of the city.
Kathi Lewis, Economic Development Division manager, told the council that data shows Orem has a balanced, thriving economy.
Lewis took time to talk about all that is happening in Orem, beginning with recently completed buildings, including the Orem Tech Center with six industrial flex buildings at 1400 N. Geneva Road and the Call Commercial Center and its three buildings at 1500 N. 800 West.
Other businesses have remodeled or taken over from previous stores, including LA-Z-Boy Furniture, previously Michaels Crafts; PetCo, formerly Shoe Carnival; Big Blue Swim School, formerly Ridley’s grocery; and 2nd & Charles, formerly Dick’s Sporting Goods.
It was noted by members of the council that interest rates and inflation are keeping developers and small business owners from some of their desired projects at the moment.
The data showed that commercial building permits were at a high of 171 in 2021 but there have only been 85 in the first eight months of this year.
Residential building permits show that single-family home permits were at their height in 2016 with 108. In 2020, Orem had 47 permits and currently there have been 27 permits issued this year.
When it comes to townhomes and condominiums, likely to be more affordable, permits hit a max in 2018 with 250. That fell to 96 in 2020 and so far zero permits for this year. The same has been true for mixed-use, high-density housing, with 2014 seeing the most at 843, then 47 in 2020 and no permits issued this year.
Lewis also shared data from the Utah Department of Workforce Services concerning employment and wages comparing Orem, Provo, Lehi and American Fork. Most of the data showed things were fairly flat with few changes over the past five years.
“Under the circumstances, we are happy, but there is always a concern,” said Councilwoman Debby Lauret. “I like a mixture of jobs. We’re like a university of jobs, with a cross section. We need to fill up the empty spaces.”
In comparing Orem, Provo and Lehi in the employment sectors in 2022, Orem had 3,756 firms, Provo 3,443 and Lehi 2,380. As for employees working, Orem had 53,295, Provo had 71,149 and Lehi had 43,392. The numbers do not include city staff, according to Lewis.
As for monthly wages, the data shows a different picture and supports the common understanding that Orem is the retail center of Utah County. But during the current year, Orem has had $32 million in general fund sales tax revenue, which indicates the revenue is only up 0.09%.
While Orem, known as “Family City USA,” continues to supply thousands of jobs, the data suggests that higher wages and affordable housing will be needed in the future to keep retail employees here and businesses open.
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- A ribbon-cutting was held Friday, July 28, 2023, at Big Blue Swim School in Orem.
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- A rendering of the exterior of the new Courtyard by Marriott at University Place in Orem.
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- This rendering shows the five-story parking terrace with four stories of Class A office space on top now under construction at University Place.
