Monday, September 1, 2008

Local economy holding its own

August 22, 2008
It's turning out that, for the local economy, 2008 may be turning out to be "one of those years," reminiscent perhaps of the fire and drought-hampered down year 2002.

We just got back the first important indicators for the all-important summer season. While not disastrous, they are a bit gloomy, about what one might expect in the current climate of high gas prices and a housing crunch.

The City of Ouray just received back its sales taxes from Denver, those collected in June when tourism time was kicking in. The tax number was $81,500, down about 7% from the same period in 2007, though nearly identical to the June 2006 collections.

For the first eight months of 2008, overall sales tax collections remain down by about 1.5%, an amount that translates to a measly $7,500 downturn in tax receipts to the city.

The hotel numbers echoed the sales tax, down from 2007 (52% occupancy rate vs. 54%), and on par with 2006. (And with an extra buck on the lodging tax, those receipts are running almost 40% over last year).

Likewise, admissions to the Hot Springs Pool were off 6%, but in line with 2006.

Glass half-full-type people might say that in the current economy, Ouray seems to be holding its own, that single-digit declines are tolerable.

They might purport that we're still attracting about the same number of tourists, but casual observation indicates that the $4 gasoline means they're coming from closer places, such as Grand Junction and the Front Range. Presumably, many people are choosing to vacation here instead of the big trips to Europe or Disney World.

But the pessimists might look at the June numbers and wonder if we're just waiting for the other shoe to fall. Could the current slow-down just be the tip of an iceberg of serious financial difficulties?

Economic crystal balls are notoriously opaque, so we'll just have to see how it plays out.

Regardless of how the monthly tourism-driven numbers continue to roll in, Ouray enjoyed a jolt of news this week that relates to its economy. And it can only be considered positive.

That, of course, is the purchase of the relatively new water bottling facility that never got over the hump for its originally intended purpose, when 80 or so jobs were first promised.

Now, after years of the seeing the plant/warehouse facility wallow in a morass of legal and financial condition, it is owned free and clear by two local young and energetic entrepreneurs, Ben Lockard and Eli Doose.

With the water bottling equipment headed to Arkansas, that business plan has been thankfully put to rest. Instead, Lockard and Doose intend to use the facility to help create "a new economy" for Ouray, one where small enterprises manufacture specialty products.

We'll eagerly watch to see how this mixed-use light industry develops under the guidance of Lockard and Doose's High Country Development Group.

So for now, while the local economy's not great, this fiscal sky is definitely not falling. And on the horizon, we see some great promise to finally realize the potential of the big facility in north Ouray.

— David Mullings

Saturday, July 26, 2008

BIOTA Water Plant and Real Estate Sells Again

OURAY – The next chapter has begun for the beleaguered BIOTA water bottling plant in north Ouray. The property, which includes the land, plant and equipment, was auctioned to Mountain Pure Water, of Bee Branch, Ark., on Thursday, July 17, for a price tag of $2.35 million. John B. Stacks, a senior officer of the corporation, participated in the bidding. No statement was available from Stacks as to future plans for the plant.

The auction company, GoIndustry/DoveBid, described the package in a brochure as a blow molding and water bottling facility with real estate comprising 3.02 acres of land, a 21,500-square-foot light industrial building and an attached 15,000-square-foot warehouse, as well as assorted bottling equipment.

The seller was United Postal Service Capital Business Credit, of Lubbock, Texas, former creditor to BIOTA. UPS bought the company for $3 million at a foreclosure sale in August 2007, and then auctioned the land, plant and equipment to Black Gold Organic Fertilizer, Inc. in October 2007 for the price of $3.8 million.

Shortly after the October 2007 auction, a legal dispute erupted over ownership of the intellectual property rights involving the brand name BIOTA, an acronym for “Blame It On The Altitude.” Black Gold filed a lawsuit against UPS for the rights, which they claimed were included in the package. The purchase agreement between Black Gold and UPS fell through following a U.S. District Court dismissal of the lawsuit in May 2008.

Immediately following the dismissal, Ouray County Treasurer Jeanne Casolari reported that her office received more than $328,500 from UPS on current and delinquent taxes due for personal property and real estate property at BIOTA.

The plant was constructed in 2003 and went into production in 2004 through a contract with the city for water from the underground Weehawken Spring, but discontinued bottling operations in early 2007.

Sunday, June 8, 2008

New Streetscape plan unveiled

RIDGWAY – Town planning officials and members of the public viewed a proposed streetscape plan for the Downtown Historic Business District on May 27 that, if approved, would serve to position the Town of Ridgway for economic revitalization. The design features a one-way, concrete-cobbled Clinton Street in a pedestrian-friendly, plaza format. The overall plan is replete with ornate iron benches, rustic mining period street lamps, perennial flower palettes, and tree-lined, paved streets.

Representatives from Durango-based Russell Engineering, Inc., a civil engineering and land planning firm commissioned by the town to design a new storm water system and streetscape, gave a PowerPoint presentation and answered questions from members of the Town Planning Commission during its regular meeting at the Community Center. The airing included a street-by-street cost breakdown, recommended construction phasing schedule, as well as the streescape layout. The scope of the project, however, was reduced due to “anticipated funding limitations,” limiting the streetscape plan to just the north side of Colorado Highway 62 between Laura and Railroad streets, according to Assistant Planner Jennifer Coates.

The cost of the project would be $2.7 million and could take 20-30 years to finance, according to Town Manager Greg Clifton, who noted that any recommendation by the Ridgway Town Council would have to be approved by voters at the polls.

The principal streets included in the renovation would be Railroad, Clinton, Laura, Cora, and Lena. The plan depicts the street layout while accommodating underground utilities; the named streets would be asphalted except Clinton, which would be paved in concrete. Clinton would once again serve as the hub of the Historic District, and could be closed to motor vehicle traffic for special events.

The intersections of the streets would also be paved in an earth-toned concrete color to “keep pedestrian flow,” according to William “Frowny” Frownfelter, who, along with Walker Christensen, Katie Nelson and Drew Chandler of Russell Engineering and THM Design, produced the plan.

The plan includes a lighted intersection at Railroad Street and Hwy. 62, with the last several yards of Railroad being moved westward onto what is now the southern portion of the tennis courts, as mandated by the Colorado Department of Transportation; buried power lines; the removal of the microwave repeater dish now in place at the Qwest Communications station on Clinton; the addition of trees on the named streets; and the utilization of more color and flower “palettes” to make Lena Street a “gateway to the town.”

“The additional trees would keep the character of the architecture,” said Chandler.

Parking would be increased from the current 180 places to 200, according to the design team.

The impact of additional street lighting was a topic of concern for some members in the audience. “I would like to see it a little darker,” commented Ridgway resident Brian Peters.

“If this goes forward, we're still two years off from actual construction,” said Clifton.

Hunter to Replace Rogers on Town Council

The ripple effect of the non-renewal of several Ridgway Secondary School teachers by the board of education on April 17 continues to be felt – most recently with some changes in the composition of Ridgway's planning commission and town council.

Planning commission chair Ellen Hunter informed the Town of Ridgway that she will be accepting an appointment to the Ridgway Town Council, filling the vacancy created by the May 15 resignation of Jonathan Rogers, who taught for four years at Ridgway Secondary School.

Town regulations provide that the runner up candidate be given an opportunity to be appointed by the town. Hunter lost to Rogers by seven votes in the April 1 election.

Rogers will be teaching language arts and journalism at Iowa City High. In his May 15 resignation letter, Rogers thanked citizens for the opportunity to serve: “It has been a pleasure to be part of this community and I look forward to hearing about new roads, festivals, green spaces, affordable housing, future issues of the Demon Press, and a renovated downtown that is sure to make Ridgway even better.”

At their May 27 meeting, planning commission members appointed member Jack Petruccelli chairperson and expressed their intent for the town to aggressively find a replacement for Hunter.

Wednesday, April 23, 2008

Affordable Housing in Ouray?

Affordable Housing on the Wane in Ouray County
by Kate Kellogg1 day 11 hrs ago | 83 views | 0 | 0 | | RIDGWAY – A new analysis of Ouray County’s housing needs, packed with facts and figures, provides the hard evidence of a growing dearth of affordable housing in Ouray County.

Consultants from Denver and San Miguel County presented their Ouray County Housing Needs Assessment to the public on Wednesday, April 16 at the Ridgway Community Center. In view of trends in wages and home prices, the assessment predicts that by 2015, 30 percent of new employee households in the county will need some form of affordable housing.

Nearly half of the 650 Ouray County households who responded to a survey on housing needs ranked affordable housing as one of the most serious problems facing the county.

The assessment was commissioned by the newly formed county-wide Affordable Housing Authority, an independent entity created to help locate, finance, build, and administer affordable housing in Ouray County. The authority is comprised of representatives from the county, City of Ouray and Town of Ridgway. Funded by a grant from the Colorado Department of Local Affairs, the housing needs assessment is the work of two consulting firms: the San Miguel County-based Affordable Housing Solutions and the Denver office of Economic & Planning Systems, Inc.

“One purpose of the assessment was to find out what residents want and need and to target appropriate housing prices,” said Affordable Housing Solutions’ Dawn Ibis.

The report highlights the growing disparity between income and housing prices. While real wages earned in the county have increased by 2.1 percent annually since 2000 (exceeding the rate of increase for the state), the increase in median value of Ouray County homes has risen 11.6 annually since 2003. The median price of a single-family home in Ouray County in 2006 was $395,000 and in 2007, $431,500. The average sale price for a condo or townhouse was $310,000 in 2007.

In 2006, the county’s area median income was $51,250 for a 2.5-person household. Not surprisingly, 26 percent of all renters and 33 percent of homeowners in the county are what the report calls “cost burdened,” meaning they spend over 30 percent of their incomes on housing. Moreover, 40 percent of all county households meet the Department of Housing and Urban Development’s definition of low income, as they earn 80 percent or less of the county’s median income.

Andy Knudtsen, of Economic & Planning Systems, attempted to “put a human face” on such affordability measures. He cited the report’s example of a household comprised of a teacher earning the average 2006 wage of $25,832 and a retail trade worker earning the 2006 average wage of $20,088. Combining their incomes, an affordable house would be priced at $157,400, far below the average available market unit from 2006.

That hypothetical household is earning about 90 percent of the area median income. Those 40 percent of the county’s population who earn 80 percent of the median could only afford a $140,000 home or a $1,000 per month rental unit.

One group that is apparently finding adequate housing is second home owners. While total housing units in Ouray County increased by an average of 112 per year from 2000-2006, the number of resident households increased by about 42 per year. Thus, 70 new housing units per year were either vacant or occupied by part-time residents.

A survey of employers in the county found that about 33 percent of Ouray workers and 75 percent of employees who work in Ridgway commute from other locations, both within and outside Ouray County. The 21 employers who responded attributed a number of employee losses to housing problems. About 25 percent of the employer respondents offer some form of housing assistance to their employees.

To prevent further shrinkage of the employee pool, essential workers should receive priority ranking as candidates for affordable housing, the study recommends. “Teachers, tellers and cops” broadly describes the cross-section of key service providers who may not be able to find affordable housing in the county, noted Knudtsen.

According to the study, the county’s current housing deficit is 165 units, a figure derived by adding the number of unfilled jobs countywide to half of the county’s in-commuters (assuming some employees commute for reasons other than housing costs). Based on employment projections, that deficit could grow to 881 by 2015.

A review of master-planned development projects highlighted the six affordable units planned for the Silvershield development in Ouray and 10 affordably priced units in Ridgway’s Parkside and Preserve developments. According to the assessment, none of the prices for any of these units will be below $220,000, or affordable for households earning less than 100 percent of the median income.

“All of these projects were initiated by developers,” said Ibis. “To achieve lower costs, such projects must be subsidized with state or federal grants.” She said the new affordable housing authority may eventually identify funding sources that will help fill the gaps.

The housing study recommends that Ridgway create a standard zoning requirement that developers set aside a portion of new units as affordable housing. Accordingly, the town should provide incentives to developers such as permit fee waivers, tap fee deferrals and density increases. It suggests that the city of Ouray could capitalize on its tourism economy by designating a fraction of sales or accommodations tax for affordable housing. Ibis noted that Telluride reserves .5 percent of its sales tax for that purpose. Since developable land in Ouray is limited, the city might provide incentives to include affordable housing in redevelopment sites.

Recognizing that the county and municipalities are protective of environmentally sensitive areas, the assessment recommends targeting areas of lesser growth, such as the Colona area, for affordable housing. The county might also use this approach for lands that immediately abut Ridgway and Ouray.

David Schwartz of Economic Planning & Systems commended the countywide attempts to address the area’s critical housing needs. “It’s great to see this collective community effort,” he said. “The challenge is to develop clear and consistent standards and generate public support for administration of future programs.”

Tuesday, April 8, 2008

Ouray Ice Park Price Tag $870,000

Ouray Ice Park Price Tag $870,000

Ouray Ice Park Price Tag: $870,000
by Christopher Pike7 - Ouray County Watch

OURAY – An unexpectedly high price of $870,000 is what an appraiser has attached to 40 acres of U.S. Forest Service land situated on the south edge of Ouray. The acreage, however, is choice: It is the site of the world-acclaimed Ouray Ice Park, the purchase of which has been a topic of negotiation between the forest service and Ouray officials for at least 18 months.

“The appraisal is a little higher than the city would like. We just got it back. We all have a real vested interest for this. We want to help the city,” Tammy Randall-Parker, forest service district ranger, told representatives of Ouray, Montrose and San Miguel counties at their quarterly Tri-County meeting on March 18 in Ridgway.

Both Ouray officials and the forest service would like the deal to be consummated, now that the details have been worked out. But is the late-arriving price out of reach?

City officials see the park as an essential component of Ouray’s reviving winter economy. However, with an already tight budget, and the 6th Street renovation about to break ground at a price tag of $478,000 (of which the city will pay approximately $150,000 out of pocket), acquisition of the ice park is likely to become more complicated.

“I thought there was going to be a land swap or buy/re-sell/trade. I thought it was for land, like an inholding,” said Ouray County Commissioner Keith Meinert.

“Yes, but for essential, critical needs,” replied Randall-Parker. “We can do land exchanges or an outright sale.”

Ouray Mayor Bob Risch told The Watchthat the city is still negotiating, but for less land. “There was not enough of an exchange value. We will have to reduce the size of the parcel. The appraiser is looking for the highest and best value to protect the public’s interest, even though we wouldn’t allow any real estate development… [Ouray’s acquisition of the ice park] is something everybody wants. The forest service doesn’t want the permitting challenges [associated with the ice park] either, including liability concerns.”

In other forest service news, some of the 22 existing range allotments for cattle and sheep in Ouray County could be permanently closed. “It’s down to 13 cattle and nine sheep allotments,” said Randall-Parker. Invoking the Range Rescission Act, the forest service and the Colorado Division of Wildlife have visited with all of the livestock permit holders and are instituting measures to reduce the risk of contact between bighorn sheep and domestic cattle and sheep, which can spread pneumonia to local populations of bighorn.

Randall-Parker also announced that the U.S. Forest Service plans to host field trips on Red Mountain National Historic District’s trails and roads to talk with user groups about management of the areas.

This summer Volunteer Outdoor Colorado will create a new campsite in Yankee Boy Basin for climbers approaching Mount Sneffels, and will eliminate others due to resource damage along the streams.

The forest service has also joined forces with Northern Arizona University’s Ecological Restoration Institute in a forest restoration project covering about 80,000 acres on the Uncompahgre Plateau, according to Randall-Parker.

Imogene Pass Run

Road Closures Sought for Next Imogene Pass Run
by Christopher Pike23 hrs ago | 53 views | 0 | 0 | |
2007 Imogene Run. (File photo by Jeff Hunt)


slideshow OURAY – Long-distance runners on the 17-mile Imogene Pass Run from Ouray to Telluride have experienced increasing conflicts with recreational motor vehicle users while participating in the race according to Rick Trujillo, a founding organizer of the annual event.

At a meeting on Monday, March 31, Trujillo told the Ouray County Commissioners that a greater degree of supervised temporary closure of the roads is now necessary.

Trujillo, president of Imogene Pass Run, Inc., explained that the emergence in recent years of more recreational and off-highway vehicles on the mountainous route during the race is interfering with the runners and threatening their personal safety. In particular, good weather in 2007 led to higher numbers of drivers on the route than in previous years, Trujillo said.

Motorized traffic enters the road from both the Telluride and Ouray sides, and voluntary measures that local businesses have undertaken in the past to control motorized traffic on an informal basis are no longer effective. Previously, Trujillo said, owners of jeep rental businesses, motels and other businesses advised their customers of the temporarily runner-congested roads during the race, and visitors voluntarily limited their use of the road. “But last year…there were lots of irate runners,” Trujillo said.

Trujillo asked the commissioners to provide at least two deputy sheriff personnel, posted signs and more pre-race publicity and notices so that the public will be made aware of the scheduled closures of Camp Bird Road (County Road 361) and Imogene Pass Road (Forest Service Road 869) to all but non-resident and race-related vehicle traffic during this season’s Imogene Pass Run, which this year will be held Sept. 6.

The county commissioners offered to do what they can, including coordinating the effort with the San Miguel County Sheriff’s office. A meeting will be scheduled with Ouray County Emergency Medical Services Chief Medic Norm Rooker and Sheriff Dominic Mattivi, as well as the Mountain Rescue Team to plan a temporary closure.

The Imogene Pass Run has grown in size from six participants in 1974 to over 1,250 runners and walkers from all over the country, according to Trujillo.

Wednesday, March 19, 2008

Ouray and Ridgway Real Estate Update

Spring has almost sprung here in the Uncompahgre River Valley. The sun was shining brightly today and the snow covered San Juan Mountains looked spectacularly white. Temps hovered in the upper 50's on main street and locals were out in shorts wandering about. It was good to open up the door here in the Real Estate Office. Hopefully the sun will melt off more of the winters snow so that we can start showing property again soon!!

The Town of Ridgway Colorado saw declining real estate dollar sales in 2007 as well as declining single family home sales. The median sales price of a home however increased from $354,000 to $395,000. This was a trend that was experienced in the City of Ouray in 2006. The trend in the City of Ouray was completely different. In Ouray the average single family home price dropped 20% while the number of single family home sales almost tripled.

In either case, both Ridgway and Ouray provide outstanding real estate values for the investor looking for refuge from the Stock Market. With average single family home prices hovering in the $1000 to $1500 per square foot in Telluride, the $250 per square foot price in Ridgway/Ouray seems like a bargain.