Economic development update: Shops at Lake Havasu revival, co‑working shortfall and workforce housing challenges

James Gray, presenting the annual update for the Lake Havasu City Partnership for Economic Development, told the City Council on Aug. 27 that several long‑running projects are progressing but face challenges including construction costs, financing gaps and a local shortage of workforce housing.

Gray said the Shops at Lake Havasu has renewed private investment interest. Tom and Megan Sanders, who operate a local Amazon fulfillment business, plan a 40,000‑square‑foot omnichannel expansion off College Street. Gray said demolition and construction drawings have been submitted and the ownership group expected to close on the property in September; he described the project as a roughly $2,500,000 investment.

Gray said a previously proposed restaurant group stalled when a corporate right of first refusal paused negotiations; he described renewed outreach to the original ownership group and said the Shops project will include a mix of employment, entertainment and retail and may eventually include a hotel and a first phase of housing (he mentioned a possible 40‑unit apartment component in a later phase).

On co‑working, Gray said an early plan for a new Nomadic facility adjacent to ASU failed to close within targeted cost metrics. The project pro forma showed a total preliminary cost near $3,200,000; Vision 2020 funds provided $400,000, but Gray said construction estimates left a gap of roughly $500,000–$700,000. He said the Partnership may repackage the idea into the downtown catalyst project (stacking the workspace above other uses) or pursue other funding strategies.

Gray also discussed Agave Business Park, noting persistent drainage problems on Pad 1 that have caused earlier letters of intent to fall through and that the city and partners must find a larger drainage path to make those industrial pads marketable.

Programs and people development: Gray highlighted Creative Comrades (a professional‑development network with nearly 500 members), First Fridays (a downtown activation event that organizers say drew about 2,000 people during a recent event), and a revived ASU Startup School slated for winter. He said previous Startup School runs enrolled roughly 53 participants across three iterations and that about five companies resulting from those cohorts are currently revenue‑generating.

Workforce and housing: Gray told council that recruitment is constrained by a local talent gap and lack of workforce housing. He said land prices and limited housing supply push prospective workers and project staff to live outside the city and that the Partnership is working with regional partners on leads but must also focus on training and retention.

Council discussion focused on site leads from Mohave County and the state, life‑cycle project costs, gap financing strategies for Nomadic and the Shops, and clarifying the Partnership's expenditures; Gray said PED operates with a lean staff and that financial records are public. Vice Mayor David Lane and several council members praised staff engagement and asked for future regular briefings.

Why it matters: The update touches on redevelopment and downtown activation, workforce availability and infrastructure constraints — issues the city has targeted to support business expansion and tourism-related economies.

The council took no formal vote on PED policy at the meeting; Gray and council members agreed he will return with regular updates.