Citrus Heights unveils comprehensive plan for economic development

By Sara Beth Williams–
A new Economic Development Work Plan for Citrus Heights was unveiled and adopted Wednesday night, outlining key initiatives aimed at targeting and attracting new businesses, as well as supporting and enhancing current local businesses.

Meghan Huber, the city’s economic development and community engagement director, who authored the comprehensive work plan, presented the plan to the City Council for approval on Wednesday and received praise for her efforts from city council members and City Manager Ash Feeney, who said her work was “on par” with work done by many consultant companies.

During her presentation, Huber explained that economic development at the city level consists of attracting new businesses, retaining and expanding business, marketing, and entrepreneurship and start-up support.

“Economic development is not confined to a single program but is woven into every aspect of City operations,” the city said in its staff report.

What the data shows
In understanding the potential areas for economic growth, Huber said it’s critical to get to know your community via data. She also said while many people might assume retail is the top industry represented in Citrus Heights, it turns out that retail comes in at the second highest in terms of job count, with healthcare and social assistance listed as the top industry in Citrus Heights with 4,900 workers. According to the work plan, there are 4,200 retail workers in Citrus Heights and 2,800 employees who work in accommodations and food service.

Health care and social assistance continues to be an area of target growth and expansion, Huber said, because the health care industry is “recession proof” and because the city has an aging population, which leads to more residents requiring expanded and specialized health care needs.

Huber said it’s also important to know the city’s available commercial real estate inventory and to understand the demographics of the city, like resident income level, education level, and even the number of residents who own pets, which helps inform future potential businesses who might be looking to locate to Citrus Heights.

Retail is listed as another area for targeted growth based on analyzed data. Real estate analytics show the city has a high number of retail commercial property spaces available. As of January 2025, the city’s retail vacancy rate was 12 percent, or 725,000 square feet out of 6 million square feet, the plan indicates. The vacancy rate shows a continuing trend following the pandemic. Pre-pandemic vacancy rates hovered between nine and 10 percent.

Office space vacancy sits at 14 percent locally, according to Huber, which reflects an ongoing trend of companies downsizing and adapting to hybrid models of both in-person and remote work. Medical office space is a strong performer in the market, with sustained demand from healthcare providers, according to the work plan. There’s also interest in repurposing office space into mixed-use, medical, or flex-office configurations.

Arts, entertainment, and recreation services was identified as another area of target industry growth, according to Huber.

“That is one of the strongest community desires,” Huber said, adding that it’s great to see data backing up that growth potential in the city.

In recruiting new businesses to fill in vacant commercial and office spaces, Huber said the city has proactively developed data ahead of time for companies to utilize when making decisions. Data such as population density, demographics, traffic patterns, and potential spending power help to inform businesses looking for commercial retail spaces, as well as the location’s visibility, accessibility, zoning regulations, and the state of the infrastructure. Companies also want to know about the competition nearby so they can assess whether there are under-served areas and whether the mix of retailers is complimentary and beneficial.

Next Steps
The economic development work plan is organized around five key focus areas and includes implementation steps for each area: business attraction and development, business retention and expansion, small business support and innovation, marketing and placemaking, and organizational culture. Implementation steps range from improving regulatory processes and streamlining zoning and permitting, to reestablishing the Business Attraction Incentive Program and launching a Small Business Design Support program.

Community feedback played a “critical role” in informing the priorities and recommendations outlined in the work plan, according to Huber. Input from residents, business leaders, property owners, and city council members helped identify “challenges, opportunities, and areas for investment,” ensuring that the plan reflects the “community’s needs and aspirations.”

To help with implementation, the city is seeking to establish a dedicated Development Process Liaison to assist businesses with permitting and development. The city also wants to implement a business safety and resource hub and a Citrus Heights Police Department liaison for businesses. The plan also lays out the desire to create a small business development center, which would host tech workshops and provide other resources.

Additionally, an existing city analyst position will be “re-tooled” to focus exclusively on economic development, and the city will launch a “refreshed and targeted” retail recruitment strategy. Other action items will also be implemented, and will be covered in subsequent articles in this series by The Sentinel.

Implementation of the work plan policy will take place over the three-year period, according to staff. Funding that may be required for various initiatives during the implementation process will be requested and incorporated into the city’s two-year budget cycle and presented for City Council approval as needed. The city also plans to do quarterly updates regarding progress on the plan to City Council.

This is part of a series of articles on the city’s Economic Development Work Plan. Subscribe to The Sentinel to stay up-to-date on stories like this and other local news.