Multi-use developments allow opportunity for businesses
May 7, 2018
Soon after Park City Brewery started making its first batches of beer three years ago, Scott Ray, co-founder, said he realized that the business was going to need a bigger, more permanent location. After years of looking, the brewery hopes to move into its new home at Quinn's Junction by the fall.
Park City Brewery and several other businesses are filling spots in Park East II, a new multi-use development that can be used as living, commercial or retail space, said Derek Erickson, the developer of the units. The first of the 48 anticipated units are under construction and expected to be completed in the fall. It is located on the east side of U.S. 40 at 4554 North Forest Dale Road.
The units are zoned for service commercial, which allows Erickson to cater to multiple individuals and organizations. So far, there will be a software business, a construction company and a car and motorcycle collector to accompany the brewery.
"It has really run the gamut," Erickson said.
The units have a footprint of 1,800 square feet and can be anywhere from one to three levels in height. Those who purchase a unit must buy it in its entirety.
Jared Higgins, a general contractor at the construction company I-Build Utah, plans to use his unit for a warehouse, offices and a little apartment above.
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The zoning classification allows for an "accessory dwelling," Erickson said. Business owners or employees can live in the space, but the living area must remain under 1,000 square feet in size.
Higgins said that owning the property rather than leasing it will save him money in the long run. He has been leasing space in Heber for about two years.
"I just think it is smart," he said. "You are paying the same payment, so you might as well own it. And any upgrade you put into it, it is your upgrade."
Plus, he added, he will own the equity in the property when he is done using it.
Erickson said that many of the businesses that are moving into Park East II or moved into his previous development Park East I in Wasatch County told him they would be able to purchase space with him at a lower or equal rate than they were paying in a lease. In Summit County, lease rates are high and vacancy rates are low, he said.
"Traditionally, what we have been seeing is that the cost of leasing is as much or greater than what ownership would be, without the benefit of equity build-up," Erickson said.
Erickson has been building multi-use developments in the Midwest for several years. When he came to Park City, he realized that there was a need to bring similar structures here. He found land in Wasatch County near the former Stock Lumber property and built Park East I. Businesses such as SYNC Float Center, Lit Salon Park East and Summit Auto Lab moved in.
Soon after, he bought land in Summit County and prepared to replicate the same building that he created in Wasatch County. More than one year later, he broke ground on Park East II. He said that the county was helpful and supportive in the zoning and licensing of the land.
Molly Crosswhite, a real estate advisor for Engel & Völkers, is helping fill the units. She said that businesses are attracted by the flexibility of designing the space to fit their needs.
That is what attracted Ray to the development. Park City Brewery is currently located at 2720 Rasmussen Road and has hit its max ceiling limit with its fermentation tank. By purchasing the 14,400-square-foot unit at Park East, the brewery is able to have 28-foot ceilings to hold its bigger tanks.
"We recently have had a difficult time keeping up with demand," he said.
He said that it has been a challenge to find a building in Park City that would allow them to have ceilings that tall, which is part of the reason why the company spent two years looking for a location.
At the Park East II location, the brewery will also have a loading dock so it can fill semi-trucks with products more efficiently.
"We will be able to get more capacity out of it," he said. "We are really looking forward to it."
Ray is also excited to be surrounded by a diverse range of businesses and residents, which will add "some life to the area."
"I love it," he said. "That is what makes Park City, Park City. It bleeds energy. Diversity is good in everything."
Crosswhite said that she was drawn to the development because of how unique it is in allowing individuals to live and work in the same space.
"It's really unique compared to everything else that we are marketing here because everything is the same," she said. "You are either buying commercial space or you're buying residential. Here you are getting an opportunity to actually have it all."
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