Park City business groups are warning city leaders that workforce housing costs are making it harder to recruit and retain employees.

The municipal government compiled feedback from four business organizations for an Oct. 8 economic development discussion with Mayor Ryan Dickey and the Park City Council, the Park Record reported.

The city’s meeting packet summarizes concerns from the Park City Chamber/Bureau, Historic Park City Alliance, Park City Area Lodging Association and Prospector Square.

Each identified different pressures, but housing and employee retention surfaced repeatedly.

The Chamber/Bureau prioritized helping established businesses manage operating and workforce costs over recruiting new businesses. Its concerns included housing-related staffing challenges, insurance costs and impact fees.

The Historic Park City Alliance, which represents Main Street businesses, cited rising rents, reduced customer parking and workforce housing challenges. It also warned that losing anchor tenants could hurt surrounding businesses and foot traffic.

The lodging association identified workforce housing as the area where assistance could have the greatest impact. It said high living costs make it difficult for employers to compete with jobs in the valley when wages are comparable.

Prospector Square emphasized attracting activity and customers rather than filling buildings or financing infrastructure. Its buildings are largely occupied, and major infrastructure improvements have recently been completed, according to the summary.

Housing pressures extend beyond commuting

Deer Valley East Village’s growth has added to concerns about competition for workers.

In a Sept. 4 interview, Councilmember Molly Miller questioned whether employees commuting from the Heber area would continue past East Village to reach Park City jobs, KPCW reported.

At the Sept. 17 housing study session, Councilmember Bill Ciraco said conversations with the Stein Collection and St. Regis indicated experienced employees were being recruited by hotels in East Village, according to KPCW’s meeting coverage.

As of August, Park City had 829 affordable workforce housing units operating and 172 under construction. That left a gap of more than 860 units against its housing target for 2032, KPCW reported.

City housing manager Sara Wineman told the council that some businesses also report employees leaving because they do not feel part of the community.

Council declines grant proposals

At the Oct. 8 discussion, city leaders did not support restarting an economic development grant program that operated from 2006 to 2022. They also declined to advance an Olympic Readiness Grant Program tied to the 2034 Winter Games, the Park Record reported Oct. 9.

Councilmember Ed Parigian questioned the Olympic connection and called the concept “ridiculous.”

Officials discussed possible future consideration of impact-fee policies and loans, but did not establish a timetable for returning to those ideas.