In theory, ‘Economic Development’ doesn’t need to be funded by the taxpayers. The Archuleta Economic Development Association, for example, was funded for many years mainly by the Pagosa business community. But by 2010, it had seemingly run out of steam, and it ceased operations, only to be replaced by a new organization: the Pagosa Springs Community Development Corporation.
The non-profit PSCDC was created in 2010 by two local governments, the Town of Pagosa Springs and Archuleta County, in hopes that the community’s business community would eventually provide the lion’s share of funding for that organization, as well. Eventually.
As of 2022, taxpayer funding still accounted for 98% of the PSCDC budget.
The Archuleta County community is also impacted by three other ‘Economic Development’ organizations: the non-profit Region 9 Economic Development District, based out of Durango… the Pagosa Springs Area Chamber of Commerce… and VisitPagosaSprings, a joint project of the Town and County aimed at increasing tourist visitation.
Region 9 doesn’t post their budget on their website, so I can’t say what proportion of their revenues come from local or state taxpayers. They serve five counties: Archuleta, Dolores, La Plata, Montezuma, San Juan.
According to the Region 9 Performance Report for 2023, it would appear that the Archuleta business community is making minimal use of Region 9’s micro-loan program.
The Pagosa Chamber likewise does not post their annual budget (that I could find)… nor an annual report (that I could find.). The Chamber offers or sponsors a wide range of trainings and community events aimed at local business success.
VisitPagosaSprings is funded almost entirely by Town and County lodgers tax revenues, which are collected and remitted by motels and Short-Term Rentals. Their budget is included the Town government budget.
When PSCDC Executive Director Emily Lashbrooke presented her January 7 report to the Archuleta Board of County Commissioners — the board that seems most eager to support the work of the PSCDC — she summarized some input from an October business-owners forum. When discussing ‘economic development’, it’s typical for our local elected and appointed leaders to consult with business owners, rather than with the community’s workforce… under the assumption that business success, and growth, forms the basis of ‘Economic Development’.
Some topics covered at the PSCDC business forum:
1. How can Pagosa Spring diversify its economy, so we’re not so dependent on tourism?
2. How could outdoor recreation factor into shoulder seasons?
3. What are the infrastructure needs for the Town & County?
4. What does Cloman Business Park need to fill it?
5. What are your thoughts & ideas for the property by Tractor Supply & Bob’s LP
6. What can the County do to help our businesses?
7. In the next year, what are you most worried about in Archuleta County & Pagosa?
8. What benefits are your staff asking for?
All interesting and important questions, to be sure. The answers, as summarized for the BOCC on January 7, reflected a “growth mindset.”
By a “growth mindset”, I mean: “Pagosa will improve if we simply grow bigger. More tourists, more population, more recreational amenities, more fish in the river, more business expansion, more events…”
…More housing?
As I suggested, it’s normal for community leaders to seek the advice of the business community. Employees would not typically be invited to this type of forum.
But PSCDC did ask a question about the workers.
8. What benefits are your staff asking for?
1. Affordable Housing, Rental Assistance
2. Healthcare
3. Child care
4. Higher wages
Many of us, who are concerned about the housing crisis in Pagosa Springs, were excited to hear about the LIHTC (Low Income Housing Tax Credit) apartments proposed for Alpha Drive, adjacent to Walmart. That 50-unit project is now close to being ‘dried in’.
A recent study of our community done by consultants Root Policy, on behalf of Region 9, suggested that Pagosa needs 800 affordable units to begin putting a dent in our housing crisis. So 50 units, specifically aimed at working class families and individuals, seemed like a step in the right direction.
But at a recent public meeting, one of our community leaders made an interesting observation.
Thanks in part to to the efforts of our local governments and our economic development agencies — especially, perhaps, VisitPagosaSprings — our community has been witnessing the construction of a rather large new hotel at the Springs Resort.
A hotel is a building, but it’s also a place to work.
I’ve heard the rumor that the Resort will need 50 or 60 additional employees in order to operate this new hotel-restaurant-spa-bathing facility.
That would pretty much fill up the new Low-Income Housing project on Alpha Drive. The Resort pays relatively low wages… or so I hear.
The community leader who mentioned this situation also noted that many of the Resort workers will likely be imported from outside the community.
One step forward, two steps back.
“Growth” and “Economic Development” have proven to be a paradox in Archuleta County, especially since our local governments have been spending well over $1 million a year promoting tourism.
This marketing effort has created more jobs, but they tend to be “low income jobs”. At the same time, the promotion of the tourism industry has resulted in maybe 10 percent of our homes being converted, by investors, into Short-Term Rentals, helping to drive home prices and rental rates well beyond the reach of our low-paid workers.
Here’s what 30 years of Economic Development has produced for the Town of Pagosa Springs. A median household income of less than $33,000 a year, when a typical house rents for $24,000 a year.
42% of children living in poverty.
If we review the questions posed to the business community in October, we might notice the absence of any specific questions about the housing crisis, or childhood poverty.
1. How can Pagosa Spring diversify its economy?
2. How could outdoor recreation factor into shoulder seasons?
3. What are the infrastructure needs for the Town & County?
4. What does Cloman Business Park need to fill it?
5. What are your thoughts & ideas for the property by Tractor Supply & Bob’s LP
6. What can the County do to help our businesses?
7. In the next year, what are you most worried about in Archuleta County & Pagosa?
8. What benefits are your staff asking for?
I can offer my thoughts on Question Number 7. What am I most worried about in Archuleta County & Pagosa? I’m worried most about continued ‘Economic Development’.
Like, for example, a County Revitalization Authority.
Read Part Three, tomorrow…