Report says lack of infrastructure inhibits growth

Report says lack of infrastructure inhibits growth

June 2, 2001

By Jim Mimiaga
Journal Staff Writer

Montezuma County lacks the necessary infrastructure to attract new businesses, a recent economic report shows. But for a small community, the rural area offers decent business opportunities and good services, local officials countered.

Limited telecommunications technology, no rail service, no direct access to a major interstate and few industrial business parks impede commercial development in the county, according to the Region 9 Economic Development Strategy report, which tracks a five-county area in Southwest Colorado.

"For example, we have had quite a bit of contacts from telecommunications call centers wanting to relocate here, but until we have the fiber-optic operations that they need, it becomes a problem because they want it today, not tomorrow," said Bill Argo, director of the Montezuma County Economic Development Center.

Positives for relocating to the region focused on quality-of-life issues. A rural lifestyle, low crime rate, fewer people, proximity to national parks and public lands, and all-season recreational opportunities were listed as pluses.

Potential development of forest resources, a vibrant agricultural economy, tourism, an airport connecting with Denver International, a full-service hospital and ample water supply at McPhee Reservoir were also cited as major advantages.

Unemployment rates in the county have been going down, according to the study, improving from 6.9 percent in 1998 to 4.9 percent in 2000.

However, a heavy reliance on generally lower-paying service-sector and seasonal tourism jobs keeps pay scales below what is considered a livable wage, contributing to underemployment.

The report’s cost-of-living analyses estimated that a livable wage for Cortez, Mancos and Dolores is $8.15, $8.58 and $7.57 per hour respectively. Improving pay scales is a focus of future development, planners say.

"We’re targeting new jobs that pay better than tourism and offer more benefits," Argo said. "To do that, we formed a cost-share alliance with surrounding communities to market the region collectively, rather than each individual county trying to do it on very limited resources."

The Western Colorado Marketing Alliance began meeting last month and is working with a $100,000 budget to generate prospective leads on companies.

So far, Argo said, an electronics manufacturer specializing in copper wiring is considering relocating to Cortez. The company would bring 25 job opportunities to the area, and utilize the San Juan Basin Technical School graduates as a potential employee pool. A wood-product company and a picture-molding distributor are also considering the area, he said.

Another obstacle is the minimal choices for commercial space, the report said. Argo contributed the squeeze to limited sewer capacity with the nearly maxed-out Cortez Sanitation District system.

"Access to sewer controls growth more than anything," Argo said, adding that the problem should be solved when a forthcoming new plant comes on-line by 2004, "but for how long, I do not know."

Lately, room has opened up for new business, said Cortez Mayor Joe Keck. He cited a 15-acre business park with full utilities southeast of the new jail, two vacant buildings at the Cortez Industrial Park and potential sites near Cortez Municipal Airport.

"But there has not been much interest as of yet," he said. "We are on the brink, though. With all of the growth in Arizona, Utah and New Mexico, we are nicely positioned to become more of a player so we have to make sure that we are ready to tap in."

Increasing traffic on highways 160 and 666 prove that Cortez is becoming a major transportation route for the trucking industry, another reason for industry to consider the county, Keck said.

Lagging telecommunications infrastructure is a big weakness, the report said. For instance, if there is a break in the microwave path used for telephone service, there is no other path to reroute that traffic. There is also no "point of presence" anywhere in the region for a long-distance carrier to handle long-distance demand.

This requires a major telephone customer to pay a mileage charge to Grand Junction, making it too expensive for most large telecommunications projects. So-called T1 data-transmission lines are available for high-speed Internet and data access, but the cost is too exorbitant for most business.

Another problem is that a housing crunch in the county has left new home-buyers with limited choices.

"There are more buyers than houses," said June Bishop of Prudential in Cortez. "Out in the country, a good house is going for at least $175,000, and in town the price is $85,000, but the pickings are getting slim."

Bishop said that one indicator of high housing demand said that free first-time home-buyer classes have been full for eight months straight.

A report by Operation Healthy Communities showed that in 1999, 66 percent of families were able to buy a median-priced home, typically between $81,000 and $86,000.

The Region 9 report also showed:

• Agriculture in Montezuma County has been expanding in terms of the number of farms, land in farms, cropland harvested, and the average size of farms. Between 1992 and 1997, the latest compiled figures, acres being farmed went from 834,000 acres to 935,330 acres, a 12 percent increase. The number of people employed in agriculture grew from 909 in 1990 to 1,284 in 1999, an 18 percent increase.

• Construction jobs saw a 52 percent jump in growth.

• A 1999 snapshot of employment showed agriculture taking 12 percent of jobs. Trade jobs were 21 percent and construction was 12 percent. Well-paying health-services jobs provide the greatest proportion of employment in the service sector, representing 31 percent of the work force. Average pay for health-related fields was $24,000 per year.

Hotels and lodging account for 18 percent of service jobs, but with an annual wage of $8,996 per year, according to the report.

"This area is one of the top counties to live in and that is the attraction, but we are not always on equal ground when compared to other communities in the state," Argo said. "But for a community of 8,500 people we are doing pretty good, and now we are putting more of the pieces together."

To obtain the Region 9 Comprehensive Economic Development Strategy and Operations Healthy Communities reports call 247-9621.