UNIVERSITY OF COLORADO BOULDER LEEDS SCHOOL OF BUSINESS IN THIS ISSUE PAGE 1 Region 9 Economic Development District PAGE 3 Economy of Southwestern Colorado PAGE 6 Pagosa Springs and Archuleta County PAGE 8 Montezuma County PAGE 9 Landlocked Rico PAGE 11 Tailwind Nutrition PAGE 13 Pinto Bean Capital PAGE 15 Southern Ute Indian Tribe A publication of the Business Research Division Volume 83, Number 3, 2017 PAGE 16 Southwest Colorado Accelerator Program The Region 9 Economic Development District of Southwest Colorado Jill Seyfarth

Founded in 1989, the Region 9 Colorado within the broader context of quality of life, including clean air and Economic Development District of a regional economy that extends across water, scenic views, and easy access Southwest Colorado strives to be a state lines. Locals often commute long to public lands. A healthy environment regional leader, working cooperatively distances to a neighboring state to take also enhances the region’s economic with the public and private sectors to advantage of job opportunities, better development efforts by providing an improve economic prosperity and to shopping, or lower real estate prices. attractive place to live and work, and a enhance economic conditions in the The resulting interconnected economy draw to tourists and outdoor enthusiasts. southwestern corner of the state. The extends to the entire “Four Corners” Land ownership strongly influences District area includes Archuleta, Dolores, area, including southwest Colorado, the local economy. Publicly managed La Plata, Montezuma, and San Juan northwest New Mexico, northeast lands make up 45% of the District, 38% counties, as well as the Southern Ute Arizona, and southeast Utah. is in private ownership, and 17% are and Ute Mountain Ute Indian Tribes, and Environmental considerations play tribal lands. The public lands include encompasses 6,584 square miles, or a key role in the area’s economic the San Juan National Forest, an area 6.3% of the total land area in Colorado. development activities. The residents of over 1.8 million acres. The 499,771- Region 9’s efforts are focused in of the Region 9 District value the high acre Weminuche Wilderness—the largest designated wilderness area in Colorado—is a part of the forest. Like much of the state, southwestern Colorado has seen enormous growth and change in recent years, providing a catalyst for new opportunities. Region 9 works within this framework to encourage flexible and resilient economic development strategies that support the strongly held regional vision

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Photo: Region 9 Economic Development District Photo: Region 9 Economic Development District

FROM THE EDITOR to preserve our small-town and traditional state-designated Enterprise Zones in This issue of the CBR highlights heritage, take care of our natural resources, our region. Since 1996, the program has the economy of southwestern and provide opportunities for our children to certified Enterprise Zone-eligible business stay in the area. “Economic development is investments totaling more than $1.2 billion. Colorado, which encompasses the epitome of change. It is unpredictable, These investments are associated with five counties: Archuleta, Dolores, uncomfortable and challenging but it is the creation of 6,968 jobs, including 488 La Plata, Montezuma, and San also a way to move the needle forward and jobs created in the last year. The District is Juan, as well as the Southern make a real difference in our communities,” also working with four counties on the new Ute and Ute Mountain Ute Indian says Region 9’s executive director, Laura Jumpstart program, offered through OEDIT, Tribes. While the five counties Lewis Marchino. to provide tax credits to unique businesses represent only 1.8% of the state’s The District’s programs target local assets that choose to locate in southwest Colorado. population, the area makes up and build on existing strengths. Region 9 The Region 9 Office supplies the 6.3% of the state’s total area works with and supports small start-up administrative support for the Four Corners businesses that have the potential to provide Film Office, providing resources and and includes some of Colorado’s quality local jobs via loan programs targeted support to visiting film, television, and digital richest agriculture, tourism, and toward small and start-up businesses that media productions. The Film Office offers industry assets. are not yet bankable. Since 1990, Region educational workshops, networking events, The articles in this issue are 9 has disbursed more than $24.5 million and free listings in the online resource largely written by business and in loans with related cumulative creation of directory available to visiting productions 1,470 jobs. The District recently became one that need to hire talent, services, and community leaders and offer of three entities in Colorado to administer a equipment. In the last year the Film Office insight into the region’s economy, new Statewide Rural Loan Fund Program supported 23 productions. focusing on key industries of $1.5 million for the Colorado Office of As a Colorado Data Center Affiliate, and unique innovations and Economic Development and International Region 9 provides socio-economic data challenges facing southwestern Trade (OEDIT). for policymakers, governments, new Colorado communities. Strategic initiatives at Region 9 are businesses, and citizens. A planning grant targeted to build an entrepreneur from the EDA enables Region 9 to work Please contact me at 303-492- infrastructure through partnerships with a with the five counties to create economic 1147 with comments or questions. local accelerator program called SCAPE; development strategies and action plans ongoing collaboration with the Southwest and to publish them in the form of the area’s —Richard Wobbekind Colorado Small Business Development Comprehensive Economic Development Center at Fort Lewis College; the economic Strategy (CEDS). The District’s various development organizations located in publications, including retail sales data for each county; and various state and federal each county, housing studies, and economic programs, such as the Colorado Department impact studies are available on the Region 9 of Local Affairs and the U.S. Economic website at www.scan.org. Development Administration (EDA). Region 9 is also the Southwest Colorado Jill Seyfarth is the Economic Development Rural Enterprise Zone Administrator, Planner for the Region 9 Economic certifying and processing state tax credits Development District of Southwest for business investment, vacant building Colorado. She may be contacted at rehabilitation, and job creation in the [email protected]. 2 COLORADO BUSINESS REVIEW The Economy of Southwestern Colorado Jackson Rueter and William Maguire III

Southwestern Colorado represents as a whole, with lower proportions of 3.8%, 2.1%, and 1.8%. Unemployment Region 9 in the state and comprises people ages 0 to 19 and 20 to 39 than levels through September 2017 were five counties: Archuleta, Dolores, La Colorado. The age cohorts 40 to 59 and 2.1% (not seasonally adjusted), a Plata, Montezuma, and San Juan. It 60+ represent a greater portion of the year-over-year decline for the 63rd also includes the Southern Ute and area’s population than the state, totaling consecutive month. San Juan County Ute Mountain Ute Indian Tribes. Region 53.2% compared to the state’s 45.6%. had the lowest unemployment rate in 9 refers to the ninth planning and Year-over-year in 2016, southwestern the region, at 1.2%, though the county’s management region created by the Colorado covered employment population accounts for only 0.7% of Colorado Department of Local Affairs. (excluding proprietors) recorded the total population in southwestern The five counties in the region 2.2% employment growth compared Colorado. Four industries command a represent 1.8% of the state’s population to 2.3% and 1.7% for the state and majority of the employed workforce in and 6.3% of the state’s total area nation, respectively. Over the last four the region: Government, Retail Trade, according to data from the U.S. Census quarters (Q3 2016 to Q2 2017), year- Healthcare and Social Assistance, and Bureau. The majority of Region 9’s over-year covered employment growth Accommodation and Food Services. population resides in La Plata County, in southwestern Colorado grew 3.4%, continued on page 5 which contains 56.7% of the region’s total population, followed by Montezuma COLORADO POPULATION CHANGE, 2016 County, at 27.4%. Southwestern Colorado’s population grew by 2.3% in 2016 based on the most recent estimates from the Colorado State Demography Office (SDO), compared to 1.7% for the state; however, the five-year compound annual growth rate (CAGR) of 1.3% is below the 1.6% growth rate for the state. Based on July 2016 SDO estimates, Archuleta County had the highest population growth rate in 2016, at 3.9%, followed by Dolores County (3.2%), Montezuma County (3%), La Plata County (1.5%), and San Juan County (0.3%). Southwestern Colorado is home to 1.8% of Colorado’s population according to 2016 estimates by the SDO and is home to 1.6% of Colorado’s wage and salary jobs. Age distribution in the region is skewed older than in the state

COLORADO BUSINESS REVIEW 3 REGION 9 EMPLOYMENT CHANGE, YEAR-OVER-YEAR GROWTH

REGION 9 UNEMPLOYMENT RATE (NOT SEASONALLY ADJUSTED)

SOUTHWESTERN COLORADO STATE OF COLORADO AGE DISTRIBUTION AGE DISTRIBUTION

4 COLORADO BUSINESS REVIEW Employment in the region accounts are farmers, most are nonfarm Mining posted a decline. for 1.6% of total wage and salary proprietorships. According to 2016 Southwestern Colorado has a greater employment in Colorado. Year-over- estimates by the BEA, proprietor share of employment in government year growth in the region has generally employment totaled 13,131 in La Plata; sectors compared to the state overall. been slower than the state over the 5,117 in Montezuma; 3,943 in Archuleta; Approximately 22.8% of jobs in the past decade, according to data from 538 in Dolores; and 263 in San Juan. area are government jobs compared the Bureau of Labor Statistics’ (BLS) In 2016, the majority (71%) of jobs to 16% statewide. Local government Quarterly Census of Employment and in Southwestern Colorado were in four has a particularly high concentration in Wages (QCEW). However, year-over- industries: Government (9,145); Trade, the region, representing 18% of total year growth rates in the region have Transportation, and Utilities (7,445); employment, or nearly one in five jobs been higher than Colorado’s for 7 of the Leisure and Hospitality (6,251); and in the area. Only 10.1% of Colorado’s last 12 months. Education and Health Services (5,586 jobs are through local government in The region also records a large jobs). Over the past five years, the four comparison, or roughly 1 in 10 jobs percentage of proprietors. According industries recording the fastest CAGR statewide. However, federal government to data from the Bureau of Economic were Government, Manufacturing, Other jobs are underrepresented in Region Analysis (BEA), about 35% of jobs are Services, and Education and Health 9 relative to the state as a whole, at proprietors. While some proprietors Services. Only Natural Resources and 1.6% and 2.1%, respectively. Likewise, state government employment is underrepresented in the region COLORADO 2016 INDUSTRY EMPLOYMENT compared to the state, at 3.2% and 3.9%, respectively. Average annual pay in southwestern Colorado was $40,017 in 2016, or 36.6% lower than the state average of $54,664. Average wages fell in the region in 2016 by 1.3%, compared to modest growth of 0.9% for the state. Over the past five years, regional compound annual wage growth totaled 2% compared to 2.2% for the state. La Plata County, the most populous county, had the highest average annual pay of all counties in the region, at $44,745.

Jackson Rueter and William Maguire III are Student Research Assistants with the Business Research Division. They may contacted at Jackson.Rueter@ colorado.edu and William.MaguireIII@ colorado.edu.

SOUTHWEST COLORADO ECONOMIC AND DEMOGRAPHIC METRICS

COLORADO BUSINESS REVIEW 5 Pagosa Springs and Archuleta County: Rebounding in the Region Photo cOF ANY KIND??? Mary Jo Coulehan

Archuleta County, a compilation of Springs was “discovered” for its stunning Archuleta Community Development economic diversity and ethnic cultures panoramic beauty, acres of natural Corporation, purchased and developed since the mid-1800s, was preceded resources, the desirability of the soothing an industrial park, which offers available by the American Indian cultures since hot springs, and the availability of its parcels and excellent infrastructure and the 1100s. Fort Lewis was established undeveloped land, creating a mecca for is home to commercial development. in 1878 along the San Juan River land developers and the wave of a new Nearby Stevens Field Airport has steadily to protect settlers from the Indians. industry—tourism. made improvements to its facilities, Archuleta County had its share of bringing on a new fixed base operator cowboys, Indians, cavalry troops, and Pagosa’s Livability and Growth and an 8,100 x 100 foot runway, and is ranchers, and embodied the lore of In 1969, Ralph Eaton bought a now known as one of the most beautiful the “Wild West.” The area has seen a development in the western area of and affordable mountain airports. change in the economy in these 139 Pagosa Springs from Art Linkletter Then the 2008 recession occurred. years, experiencing significant economic and John Cameron Swayze. This Hardest hit in the community was real shifts from cattle and sheep ranching development expanded into the Pagosa estate and construction. Pagosa Springs to the timber industry. These industries Lakes Property Owners Association has a high percentage of second-home prompted the extension of the railroad (PLPOA), the second-largest property owners who enjoy Pagosa’s four distinct into Archuleta County in 1900, providing owners association in Colorado, now with seasons and affordability. Housing prices a practical way to ship cattle, sheep, and 6,600 properties over 21 square miles. dropped, and the industry was left close lumber to market. Also located within the PLPOA enclave to shambles. People who lost their The town of Pagosa Springs grew is the Wyndham timeshare facility, with homes in other parts of the country were up around Fort Lewis; however, when close to 500 vacation units. Wyndham not able to move to Pagosa or afford a the Fort moved west, the community is a significant contributor to the tourism second home with the constriction of the remained. The area was platted and market in Pagosa Springs, offering mortgage industry. Construction workers surveyed in 1883, and the town year-round timeshare opportunities with left for other parts of the country where incorporated in 1891. Pagosa Springs many repeat customers who love the the recession did not hit as hard. With this still remains the only incorporated town beauty, weather, charm, and amenities exodus, a large number of homes came in Archuleta County, which covers over of Pagosa Springs. The Pagosa Lakes on the market, ranging from foreclosures 1,350 square miles. Throughout the area has developed into one of the to higher-end homes. The real estate economic booms and busts of the years, significant residential areas, bringing with industry began to climb out of the barrel one natural resource remained an area this development the services needed slowly in 2011–12, much later than many attraction—the appeal of the “healing” to support the community, including other areas. With the improvement of the properties of the natural geothermal retail shops, grocery stores, restaurants, economy nationally, Pagosa once again hot springs. When timber became lodging, and other service industry became a community attracting second- over logged, the railroad diminished, facilities. home owners. The expansion of some and major national events such as the Pagosa Springs saw a huge boom industries also improved the market for wars and Great Depression hit, Pagosa in the construction industry, with the home buyers, although currently there is Springs again experienced another population growth from 1990 to 2000 a shortage of inventory in several market major shift—the creation of a major ranking 5th in the state and 14th strata. Pagosa’s median home price is east-west highway in 1916 over Wolf nationally. The Archuleta Economic $295,000—a tremendous value for a Creek Pass. Then in the 1970s Pagosa Development Association, formerly the Colorado mountain town.

6 COLORADO BUSINESS REVIEW The one bright spot in the recession general and orthopedic surgery, MRI and All types of housing, purchase for Pagosa was the tourism industry. mammography services, telemedicine, and long-term rental, are needed to Despite a dip in the lodging tax and 24/7 emergency services. Also, keep pace with the employment and collections in 2008, Pagosa’s tourism Pagosa Springs Medical Center is now population influx. In 2017, the town industry has seen a consistent growth Pagosa’s major employer. Axis Integrated revamped its comprehensive plan to in lodging occupancy year after year Health Care also expanded its services in address density issues, zoning guidelines, since 2009. Tourism-related jobs make 2017 from a small office facility to a new and commercial development. It has up about 64% of the job market. A 10,000-square-foot building to include also focused on improving its multimodal strong tourism board, focused marketing behavioral health care and primary care trail and river walk systems, and is finally efforts, and the collaborative efforts of services. Two assisted-living facilities and experiencing momentum and completion both the town and the county has put two private practices also complement after years of planning. Pagosa continues Pagosa on the map as a hidden gem. the health care landscape. Health care to look for small manufacturing and The designation by the Guinness Book professionals, such as nurses and home-based businesses to even out of World Records of The Mother Spring medical assistants, are in demand in the seasonal spikes of employment and as the “World’s Deepest Geothermal Archuleta County. The alternative health sales tax. Archuleta County embraces Hot Spring” in 2011, the designation care industry is also very prominent. renewable resources development, such of Chimney Rock National Monument With the increase in health care as geothermal and biomass industries, in 2012, and the reputation of “the services and employment opportunities, and currently has complementary most snow in Colorado” at nearby Wolf other infrastructure needs have also manufacturing, including geodesic Creek Ski Area has continued to boost arisen. Archuleta School District, growing domes and outdoor apparel Pagosa’s popularity. It is these tourism Pagosa’s second-highest employer, saw design and production. Archuleta County assets that help convert visitors to student numbers increase approximately recently adopted and has been approved permanent residents. 10% from the 2015 to the 2016 school as a Jump Start community. While the year. The community also welcomed community has kept pace with some of Work Where You Play its first charter school in 2017 with 80 the growth by offering amenities such as Community studies show that one of students, K–4 at this time. Although a variety of restaurant choices, shopping, the major reasons people move to a the addition of Walmart in 2015 was live theater, and community events, it community is the “livability” and character controversial, the store is one of the lacks conference and meeting facilities to of place. Pagosa definitely has the beauty community’s major employers and sales accommodate a variety of tourism and and has attracted a range of ages to the tax contributors. community needs. community. Archuleta County’s year- With growth also comes growing pains. Pagosa’s economy has come out of round population is close to 13,000 The town and county have identified the 2008 recession even stronger than people. The incorporated town of Pagosa three major initiatives to address the before with hard work, focus, a change in Springs has a population of about 1,800 growing needs of the community: government cooperation, and the grass- people. By 2020, the population is broadband, housing, and early childcare roots efforts of its residents to create an anticipated to grow about 2%; however, and education. Additionally, the chamber attractive community, growing smartly and this figure does not include the large of commerce is focusing on workforce keeping its integrity. Pagosa Springs is number of second-home owners. development. These challenges are not strategizing its future population growth by One of the key industries that has unusual for rural Colorado towns. Task placing emphasis on some key industries been instrumental in the growth of forces have been created and are actively in order to attract a younger population Pagosa Springs has been the health working on all initiatives. while being able to service the needs and care industry. Taking a risk in 2008, The terrain and distance of rural high level of activity of an older population. the Upper San Juan Hospital District neighborhoods creates difficult internet Pagosa Springs and Archuleta County received a grant and built a Critical connectivity logistics. New technology welcome businesses and investors and Access Hospital with 11 beds and limited by Skywerx, a wireless internet service those who want to make a positive impact services. In 2010, it opened a Rural provider based in Pagosa Springs, in our community to continue our history Health Care Clinic with 8 exam rooms and the efforts of the Pagosa Springs of economic diversity. and still limited services—1 day a week Community Development Corporation by appointment! Fast forward to 2017 to bring all of the internet players to the Mary Jo Coulehan is Executive Director and the Pagosa Springs Medical Center table is facilitating improved broadband of the Pagosa Springs Chamber of underwent a multimillion dollar expansion services to Archuleta County. An RFP for Commerce. She may be contacted at and now offers 36 exam rooms and broadband project coordination will come [email protected]. many specialized services, including out in 2018 to speed the process along.

COLORADO BUSINESS REVIEW 7 Hovenweep National Monument, Square Tower Group. National Park Service photo.

Public Lands Key in Montezuma County Economic Diversity Donna Graves

In Montezuma County, economic including the Ute Mountain Ute Tribe, the forest health. Rebuilding is slow but the development efforts are focused on Hispanic community, and youth. school district has lost few students as diversifying the local economy. The The local food movement is also townspeople rally to support displaced goal is to develop and improve the thriving with farm to school projects workers. Currently, sales taxes are up, a number, quality, and variety of jobs that providing fresh local ingredients to new RV park is nearing completion, and are available to local residents through school kids, and more restaurants short-term rentals are thriving. the retention and growth of existing offering locally grown products. A relative newcomer to the plethora businesses, as well as the recruitment of Recently, a $500,000 grant to improve of recreational opportunities is mountain new businesses. Some strategies being food storage and distribution was biking, with popular trails such as Phil’s discussed include the introduction of awarded to the Southwest Farm Fresh World and the proposed Paths to Mesa new crops, passing a renewable energy Food Distribution Cooperative, a local Verde trail connecting communities and solar-friendly resolution, and creating community sponsored agriculture (CSA) in the county and the larger region. higher visibility of the many outdoor program that aims to connect growers The Town of Dolores provides locals recreational opportunities. to consumers. and visitors with excellent biking Quality of life is paramount to county In Mancos, locals began to work opportunities at nearby Boggy Draw residents. Local communities are proud with Colorado Creative Industries in and elsewhere on the public lands of their cultural diversity and unique 2014 on becoming a certified Creative surrounding the town. Residents are experiences, and have initiated projects District. Today, Mancos is a unique also passionate about the health and that showcase their towns, resulting in melting pot of artists and artisans, beauty of the Dolores River corridor. increased sales and lodging taxes. This is farmers, ranchers, local independent Public lands are an important especially apparent in Cortez, recipient of businesses, and visitors, working economic driver for Montezuma a $100,000 “Heart & Soul” grant from the together to diversify the economic County. A variety of activities provide Orton Family Foundation. Heart & Soul development of the town. Mancos is opportunities, including oil and gas reconnects people with what they love currently rebounding after a devastating development, grazing, minerals most about their town, and translates fire in May 2017 at the Western Excelsior extraction (i.e., gravel), timber resources, those personal connections into a Corporation manufacturing plant, the and recreation. The county covers 2,040 blueprint that serves as the foundation largest employer in the town. The square miles of the Colorado Plateau, for future community decisions. plant supported 127 jobs using timber and has the distinction of bordering Utah, Community Heart & Soul changed the harvested from logging initiatives aimed New Mexico, and Arizona—the Four way Cortez engaged groups that had at dramatically reducing forest fires in the Corners region. Public lands account not been involved in local government, Rocky Mountains and improving overall for 39% of the county; the Ute Mountain

8 COLORADO BUSINESS REVIEW Ute Indian Reservation, 34%; and private Protected public lands such as national million in labor income, $65 million in lands, 27%. parks and national monuments play an value added, and $109.5 million of Public lands also provide the backdrop important economic role throughout economic output in Montezuma County for a thriving “heritage” tourism Montezuma. They provide employment in 2016. industry. The National Trust for Historic for people who discover, manage, and Research by Headwaters Economics Preservation defines heritage tourism maintain the resources as well as the (The Economic Importance of National as “traveling to experience the places, jobs that are created as a result of visitor Monuments to Communities 2017, artifacts, and activities that authentically expenditures (tourism). Being listed as a Headwaters Economics) shows that represent the stories and people of national monument or national park also conserving public lands helps to the past and present.” According to raises the visibility of the site on the world safeguard and highlight amenities that Colorado Preservation, Inc., those map. Because visitors travel from areas draw new residents and businesses to visitors spend more money overall during near and far, these cultural resources surrounding communities and diversify their trips and tend to travel for longer support a vibrant tourism sector that local economies. Proximity to public trips than non-heritage tourists. Heritage is a source of economic opportunity lands also helps sustain property values tourists are also more likely to stay in for the local businesses in the gateway and attract new investment. For people hotels, shop, dine out, and participate in communities of Cortez, Dolores, Mancos, with investment income and many a variety of activities. and Towaoc (the headquarters of the Ute retirees, protected public lands and In Montezuma County, many of the Mountain Ute Indian Tribe). recreation provide important aspects tourist attractions are internationally In addition, local institutions such as of a high quality of life. For Montezuma recognized prehistoric landscapes that the Anasazi Heritage Center and the County residents, public lands are also convey vital chapters of human habitation Crow Canyon Archaeological Center key to economic diversity. over thousands of years. These include provide opportunities for visitors to the Canyons of the Ancients National learn more about the cultural resources Donna Graves is a Research Consultant Monument, Hovenweep National through exhibits and experiential learning. with Information Services, Inc., based in Monument, Mesa Verde National Park, Combined, employment and visitor Durango, Colorado, and can be reached the Ute Mountain Tribal Park, and Yucca spending related to cultural resources at [email protected] or 970-385-4897. House National Monument. totaled an estimated 1,300 jobs, $41 Landlocked Rico Kari Distefano

Like most of the communities in the the Dolores River made recreation the expensive. Rico was a place that a southern San Juans, precious metals obvious choice as a new economic driver. person with middle-income job could still and the lure of easy money brought The 1968 decree “In the matter of the buy a home. Today, Rico is, and will likely early Anglo settlers to the Town of Rico. Town of Rico etc.” Judge Kempf, when continue to be, a bedroom community Following the discovery of rich silver adjudicating rights to the original flume, to neighboring Telluride, and the fact ore in 1879, the town quickly grew to recognized the recreational potential of that Rico, both by virtue of geography accommodate a population of 2,500 that Rico. “In this respect the Court Finds and economy, aligns more closely with supported two newspapers, a theater, that mining is no longer a major factor San Miguel County than Dolores County and 23 saloons. Constructed by Otto in the growth of the town, but replacing presents the Town of Rico with a unique Mears, the Rio Grande Southern railway it is the greatly increasing demand in set of challenges. arrived in Rico in 1891. This ensured a recent years for recreational facilities The configuration of Dolores County degree of continuing prosperity until it in favorably situated mountain areas reflects the symbiotic relationship was abandoned in 1951. which have in many places in Colorado between the agrarian west end of the In the mid-1970s when the Argentine already occasioned extremely rapid county and the miners in the east end Mine closed for good, Rico struggled to growth, and the Town of Rico fulfills all the who needed to be fed. That relationship, redefine itself as a town. The population requirements for such development.” while necessary in the mining days, dropped to 76 and the miners, many of The establishment of the Telluride Ski has always been troubled. In 1947, the whom were Navajo, left for other jobs. Resort in 1972 brought a new dimension voters of Dolores County, residing mostly The spectacular beauty, the vibrant to Rico’s economy. By the late 1980s, big game population, and fishing in housing in Telluride became prohibitively continued on page 10

COLORADO BUSINESS REVIEW 9 Photo: Gina Distefano

on the west end of the county, voted by San Miguel County who lives in Rico Today, Rico is still striving to recover to move the county seat from Rico to to provide policing in more serious from the 2008 economic downturn that Dove Creek. Moving the documents and matters, but she recently resigned. Code affected the whole state but hit rural other accouterments of the county seat enforcement, such as speeding and communities harder. The infrastructure allegedly occurred in the middle of the nuisance complaints, are dealt with by a is aging. The town lacks a central sewer night sparking further animosity by the two-day-a-week deputy subcontracted system, and the water lines are prone residents of Rico who hadn’t liked the from the Telluride Marshall’s Department. to leaks. The current population of 250 change in the first place. Calls to 911 bring assistance from either people is insufficient to support a grocery More recently, in 2000, Rico explored San Miguel County or Montezuma store or many other small businesses. the possibility of seceding from Dolores County, both of which are closer than the Storefronts in the commercial core are County and becoming part of San Dolores County sheriff. shuttered, and the restaurants have Miguel County. The argument for Educating the children of Rico presents difficulty surviving the winter off-season. secession included lower property taxes another difficulty. Rico has an elementary But there is hope. The Rico Trails Alliance due to the higher assessed value of San school that can enroll students through is working on developing more trails for Miguel County and better services due third grade but it struggles to sustain a both hiking and mountain biking. The to the proximity of Telluride. Secession student body. Most parents, themselves Artists of Rico continues to grow as an would have required approval by both working in Telluride, take their children organization and attract new members. Dolores County and San Miguel County. to the Telluride schools where they are The spectacular mountain scenery While the voters in Rico and San Miguel more easily collected if they get sick or remains unchanged, and the people who County approved the request, the some other emergency arises. Lacking live in Rico are energetic and engaged. voters in Dolores County did not and the students, the Rico Elementary School is While Rico will likely remain a bedroom proposal failed. expensive for the Dolores County School community for the Telluride Resort, But the unusual configuration of District to maintain but they are obligated we continue to pursue opportunities Dolores County continues to create by law to educate students within their to develop the town in a moderate, challenges. It is impossible to drive from district. The Telluride School District is sustainable manner. Rico to the county seat in Dove Creek not. Further complicating this equation without leaving the County entirely. It is tax dollars from Rico property owners Kari Distefano is the Town Manager for is impractical for the Dolores County are going to operate a facility they can’t the Town of Rico, and may be contacted Sheriff’s Office, located 71 miles away in use beyond third grade even if they were at [email protected]. Dove Creek, to provide law enforcement. inclined to put them in school in Rico, far Rico currently uses a deputy employed from their place of employment.

10 COLORADO BUSINESS REVIEW Tailwind Nutrition Jenny Vierling

Tailwind Nutrition, a 2017 Colorado terms of training, equipment, lodging, operate—Durango, Colorado. The area Company to Watch, is a fast-growing and travel. To have a DNF (did not finish; offers a superb backdrop for product sports nutrition company based in an event for which the participant never development and testing, and has Durango, Colorado, with manufacturing, finishes) or disappointing finish because business expertise and resources for office, and warehouse facilities located in of stomach issues, cramping, or hitting start-up and first-stage companies. Bayfield, Colorado, a Colorado Enterprise the wall (bonking) is heartbreaking— Originally designed for personal use, Zone. It manufactures and sells especially when it is due solely to the close-knit athletic community in endurance sports and recovery drinks mistakes in fueling. Tailwind was Durango embraced the “all-in-one” for athletes training and competing in 2+ developed to change all that. endurance fuel, and gave it a platform hour sports, with a focus on solving the Prior to Tailwind, athletes believed that on which to expand. Mountain Bike specific nutrition challenges endurance complex carbohydrates in the form of Specialists, one of America’s Best Bike athletes face: stomach/GI problems maltodextrin, protein, and separating Shops as listed by the National Bicycle and balancing calories, electrolytes, and calories from electrolytes and hydration Dealers Association, gave Tailwind hydration. From Bayfield, Tailwind sells was the best way to fuel. With Tailwind, Nutrition its first retail location, thereby directly on its website; on Amazon; in that approach is turned upside down. legitimizing its entry in the market. 700+ specialty retailers nationwide; and Tailwind uses simple carbohydrates Durango DEVO, the largest youth throughout the world via international and eliminates protein to solve stomach development cycling organization in the partners, including Europe, Asia, problems athletes face. Combining country, tested Tailwind’s first flavors Australia, and South America. calories, electrolytes, and hydration to and provided critical product feedback. The phrase, “Necessity is the mother create a “complete fuel” simplifies the Bouré Bicycle Clothing, a popular bike of invention,” captures the birth of complex calculus of fueling for long apparel company for long distance riders, Tailwind Nutrition. The business started events, and enables athletes to run on enclosed samples of Tailwind with orders with its founder, Jeff Vierling, trying to the same fuel for 24+ hours. that went out the door. The Hardrock create a sports drink that would power Tailwind Nutrition is growing rapidly 100, one of the most prestigious him through the Leadville 100. Hundreds, not only due to its highly differentiated ultrarunning events in the world that takes if not thousands, of dollars are spent and effective product, but also because place in Silverton, Colorado, selected on events such as the Leadville 100 in of where it started and continues to Tailwind to be the fuel on the course and in the process introduced the product to avid trail runners around the world. Photo: Tailwind Nutrition Today, that same athletic community (and Durango) continues to play an important role in Tailwind’s brand and persona. The “Made in Durango” logo and Colorado flag are on the company’s packaging; the rugged San Juan Mountains are featured on the Tailwind website. An important component of the company’s social media is sharing images from its own backyard where Tailwind employees ride, run, hike, ski, kayak, and more. The stunning backdrop of Durango with its mountains,

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COLORADO BUSINESS REVIEW 11 Photo: Gabe Keating Photography

rivers, and trails are an extension of Tailwind is fortunate to be in a issue: shipping costs are high compared the company and its brand identity. community where there is extensive to an urban area, and deliveries/ The name Durango conveys a certain networking, and where companies shipments are sporadic so require ruggedness, “dirt under the fingers” support one another. SKA Fabrication, a careful planning. There is also a large authenticity that reflects Tailwind’s core division of SKA Brewing, was instrumental pass named Wolf Creek so watching the values and are qualities that its customer in designing Tailwind’s in-house long-range weather forecast is imperative base can connect and identify with. production line using a combination during winter. Finally, the labor pool is In addition to the athletic community, of screeners, conveyors, mixers, and limited. Finding employees with the right Durango offers invaluable business filling machines designed for its specific skillsets, education, and experience is a resources to support a growing product needs. High Desert Foods, a challenge. And, despite all the amenities company. The Durango Region 9 food manufacturer, shared its commercial that Durango and the surrounding area Economic Development Office, La kitchen space and employees to have to offer, it is a difficult move for Plata County Economic Development manufacture the first batches of Tailwind. potential employees. It takes a special Alliance, and the Colorado Small GitPrime, a high-tech start-up, and kind of person. Business Development Center have Zuke’s Natural Dog Treats have also Ultimately, however, for Tailwind all played an important role in Tailwind shared their knowledge around human Nutrition the benefits of operating in Nutrition’s efforts to build a strong resources, operations, and organizational rural Southwest Colorado far outweigh community asset. The role of mentors design. Similar to the early pioneering the challenges, and in the process in developing the Tailwind business communities, a key benefit of living Tailwind has become a community cannot be overstated and each of and working in a smaller community asset. Producing Tailwind locally creates the aforementioned entities provides is the relationships and networking manufacturing jobs and competitive guidance and serves as a sounding opportunities—and most importantly the advantages in consistent supply board. From building business models personal, human connections that are and quality, scalability, and cost. The to understanding the competitive made and serve as a support system to company also gives back 1% of its gross framework of the sports nutrition market entrepreneurial companies. revenue to the community—supporting to marketing and operational strategies, No doubt there are challenges in trails, youth development programs, and the mentorship and access to programs establishing and growing a business in other services. It’s a win-win. and services has enabled Tailwind to rural Colorado. Space is at a premium. save several years in planning, avoid The ability to find adequate warehouse Jenny Vierling is co-founder of Tailwind costly mistakes, and expedite its entry space at a reasonable price is next to Nutrition. She can be reached at jenny@ into key markets. impossible. Transportation is always an tailwindnutrition.com.

12 COLORADO BUSINESS REVIEW Pinto Bean Capital of the World Gus Westerman

Agriculture is not only a way of life in acres in farms and ranches. Of these The products that put Dolores County Dolores County; it is a major economic acres, cropland accounted for 45.7%; on the map are produced on the 73,102 driver. From the lower canyons and pasture, 29.5%; woodlands, 21.3%; acres of cropland that surround Dove mesas on the western side to the and other uses, 3.5%. Dolores County Creek. Approximately 7,000 acres are high country on the east, agriculture showed a total of 283 farms. Of these, under irrigation provided by the Dolores plays a big role. According to the 2017 138 of the principal operators reported Water Conservancy District fed from Economic Snapshot from Region 9 farming as their primary occupation. McPhee Reservoir. The irrigated land Economic Development, agribusiness The market value of crops sold in 2012 mainly produces premium alfalfa hay accounted for 32% of jobs in 2015 in totaled $10.1 million, up 14% from that is primarily grown for the dairy Dolores County, making this the leading 2007. Crop sales contributed 63%, and market in other states. The rest of these base industry. Agribusiness accounts for livestock sales contributed 37%. This is acres is in dryland production. With an all farming and ranching and all related an average of $35,629 in products sold average precipitation of 15 inches per support services, such as farm supply per farm, a gain of 14% from 2007. The year, most as snow in the winter months, retailers, and product marketing entities, average Dolores County farm is 565 dryland crop production is challenging. including the three elevators that operate acres. The main crops produced are hard red in Dove Creek. Dolores County boasts Agriculture taking place on the east winter wheat, dry beans, oleic sunflower, a very diverse geography. The lowest side of the Dolores River is limited to and safflower. Common crop rotations elevation is 5,900 feet in Disappointment livestock grazing. This includes private include some or all of these crops with Valley on the west, and the highest is ranches and federal grazing permits. fallow periods mixed in to store moisture 14,046 feet on top of Mount Wilson on Many livestock operations that graze the in the soil. the east. This necessitates diversity in the large expanses of rangeland are based in Dove Creek is known as the “Pinto agricultural enterprises in the county. the neighboring counties of Montezuma Bean Capital of the World” for a good According to the USDA 2012 Census and San Miguel. Cattle graze much of the reason. Dove Creek may not have the of Agriculture, which is conducted every mid-section while the higher elevations level of bean production in other places, five years, Dolores County had 159,961 further east are grazed by sheep. but it is able to produce a very special product that is distributed nationwide. The two leading beans from Dove Creek are the pinto bean and the very special anasazi bean. Local legends say that the anasazi bean was collected from ancient ancestral puebloan sites and propagated by early farmers. Today, the anasazi bean is a popular specialty crop available only from Adobe Milling in Dove Creek. Farmers also market crops at the Midland Bean Company and High Country Elevator, also in Dove Creek. Although dry bean production is less common than it used to be, it is still a very important part of the agricultural economy.

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Photo: Gus Westerman COLORADO BUSINESS REVIEW 13 Photo: Gus Westerman

to these challenges in different ways. There is an increase in certified organic crop production because organic crops demand a much higher price compared to crops from conventional production. The downside is that organic crops have fewer marketing options. Farming practices are evolving as well. There is a new focus on soil health. The Colorado State University Southwestern Colorado Research Center is currently working on a project to test the feasibility and advantages of cover crops in dryland crop rotations in southwest Colorado and southeast Utah funded by USDA Western Sustainable Agriculture Research and Education (SARE). The research center is currently applying for an additional three years of funding for this cutting-edge Agricultural producers face many is the remote nature of the area. There project that has great support from local challenges, and the Four Corners region is no rail or interstate highway access. producers, conservation districts, and is no different. Many of these challenges This means that commodities produced agricultural professionals. Producers use stem from the location. Due to the must be shipped out by truck to distant many different risk management tools to high elevations, the growing season in markets, significantly raising marketing stay in business. western Dolores County is short, with costs. Perhaps one of the toughest It is key for producers to be proactive 90 to 100 frost-free days, limiting crops issues is the average age of Dolores with the issues they face. Succession that can be produced. Limited access to County farmers, which was 59.6 in 2012. planning for farms and ranches will prove irrigation and 15 inches of precipitation It has gone up. One question is, who will to be very important in keeping these add further limitations. All dryland take over these farms when the principal lands in production. Agriculture has crops must be adapted to low moisture operators retire? Some operations have shaped the landscapes and communities conditions. All crops produced rely on the next generation in place and ready to in Dolores County. It is a way of life. winter moisture stored in the soil profile. take over. Many do not.

Dry bean, sunflower, and safflower crops Dolores County producers face these Gus Westerman is the Dolores County are particularly tricky because they rely challenges head-on every year. The 2016 CSU Extension Director and Chairperson on both winter moisture and timely and 2017 seasons have been particularly of the Dolores County Development monsoons during the summer season. challenging due to low commodity and Corporation, and may be emailed at Other challenges the location presents high input prices. Producers are adapting [email protected].

14 COLORADO BUSINESS REVIEW Southern Ute Indian Tribe Growth Fund Patrick Vaughn

The Southern Ute Indian Tribe is leaders, and the efforts and achievements In 1999, the Tribe adopted a financial a federally recognized Tribe with a of its employees. plan that was unique in Indian Country. Reservation located in southwest Early efforts to develop minerals under The plan separated the government Colorado, generally in the southern the supervision of the Bureau of Indian functions of the Tribe (a quasi-sovereign portions of Archuleta and La Plata Affairs provided moderate economic nation) from the business functions. counties and bordering New Mexico. The benefits to the Tribe. However, beginning The government division was named Tribe’s headquarters and office campus in the 1980s, the Tribe assumed an active the Permanent Fund and was set up are immediately north of the Town of role in managing its resources. The Tribe to receive a portion of the royalties and Ignacio, Colorado. The Tribe is the largest created a Department of Energy to audit severance taxes to fund an endowment employer in La Plata County, with over and manage the royalty and severance to ultimately operate from interest earned 1,500 employees. Tribal members total taxes paid by other operators within the on the endowment. The Growth Fund 1,508, and approximately 1,000 live on Reservation. In 1992, the Tribe started its was formed in 2000 to operate Tribal the Reservation. own exploration and production company, for-profit businesses both on and off the Governance of the Tribe is through the Red Willow Production Company, and Reservation. In 2001, the Tribe received an adopted constitution that sets forth later, its own midstream company, the (and still maintains) a AAA credit rating a democratically elected Tribal Council Red Cedar Gathering Company (a joint from S&P and Fitch. consisting of a chairman and six council venture with Kinder Morgan). The Growth Fund is charged with members. The Tribal Council serves In the late 1990s, the Tribe estimated making money and paying dividends staggered three-year terms. that on-reservation gas production and elders’ pensions, while reinvesting The Tribe’s economic success comes would peak within the next decade and money to grow the businesses to from its land, mineral estate (the Tribe’s determined that other sources of revenue provide for future prosperity for the Tribal Reservation straddles the northern third of were necessary to sustain the Tribe’s membership. the San Juan Basin, underlain by gas- future. Actual production in the San Juan While the Growth Fund started small, it bearing geological formations, including Basin peaked in 2004 and has been has grown substantially over the last 18 coalbeds), the extraordinary vision of its declining ever since. years. It now employs approximately 460 people with holdings and/or operations in 7East Apartments in Austin, Texas. Photo: Greystar. 12 states and the Gulf of Mexico. The Growth Fund now consists of companies operating in oil and gas exploration and production on the Reservation and in the Permian Basin, the Powder River Basin and the deep water Gulf of Mexico (Red Willow Production Company); gas gathering on the Reservation (Red Cedar Gathering Company) and gas gathering and treating off-reservation (Aka Energy); real estate investment in hotel, apartments, industrial buildings, office buildings, and horizontal and vertical development (GF Properties Group); and private equity fund

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COLORADO BUSINESS REVIEW 15 investment (GF Private Equity Group). The direction and vets all major acquisitions, investment arm of the Southern Ute market value of the Growth Fund assets dispositions, financings, and other major Indian Tribe operating both on and off- today exceeds $3 billion with very low events for recommendation to the Tribal reservation. It is a substantial, but quiet leverage by industry standards. Council. Other members of the Growth economic driver for southwest Colorado Growth Fund oversight is managed Fund Management Committee include serving the membership of the Southern by three directors: the operating one Tribal Council member, one Tribal Ute Indian Tribe. director—energy; the operating director Member at Large appointed by the Tribal —non-energy; and the finance director. Council, and the General Counsel for the Patrick Vaughn is the Operating Director - The president of each business unit Growth Fund. Once the Growth Fund Non-Energy of the Southern Ute Growth or manager of each Growth Fund has acted on a major topic, it is then Fund, and may be reached at administration department reports directly reviewed by the Tribal Council. The Tribal [email protected]. to one of these directors. Council has final say on major decisions The directors are also voting members by majority vote. of the Growth Fund Management In summary, the Southern Ute Indian Committee that provides policy Tribe Growth Fund is the for-profit Photo courtesy of Josh Miller Southwest Colorado Accelerator Program for Entrepreneurs Elizabeth Marsh

Southwest Colorado is a rural region businesses. Graduates of SCAPE have with a strong entrepreneurial community. been featured nationally in Product Hunt, Local angel investors and successful Inc.com, and CNBC. business owners collaborated a few years SCAPE is the hub of the regional ago with regional economic development entrepreneurial ecosystem, and supports groups to tackle local job creation. They many events, including Go Code formed SCAPE, the Southwest Colorado Colorado, SBA Innovate Her, Colorado Accelerator Program for Entrepreneurs. Tech Tour, Fort Lewis College Hawk SCAPE’s objective is to help create more Tank Business Plan Competition, and high-growth and job-creating companies Entrepreneurs of the Southwest meetups. in southwest Colorado by providing The SCAPE Accelerator is built access to equity funding, office space, around strong volunteer mentors and education, and intense mentoring to subject matter experts. Many of the early-stage companies. advisors are company founders, venture Due to the remote rural location of investors, and startup consultants willing southwest Colorado, the local economy to contribute their time to mentor the The CBR is a quarterly publication of the Business ­ relies heavily on entrepreneurial startups and to provide some investment Research Division at CU Boulder. Opinions and ­conclusions businesses for both jobs and tax funding. Local angel investors provide expressed in the CBR are those of the authors and are not endorsed by the BRD, the Leeds School of Business revenues. SCAPE is an innovative seed funding to be deployed in the faculty, or the officials of CU. business accelerator building the region’s companies that come out of SCAPE. View our website: www.colorado.edu/business/brd entrepreneurial infrastructure. Richard L. Wobbekind, editor; Cindy DiPersio, Since beginning in 2013, the Visit www.goscape.org to learn more. assistant editor; Brian Lewandowski, technical advisor; program has graduated 19 companies Kristin Weber, design. headquartered in southwestern Colorado, Elizabeth Marsh is the SCAPE Director This report is not produced at taxpayer expense. created 65 local jobs, and raised more in Durango, Colorado. She may be The University of Colorado Boulder is an equal than $4.7 million in capital to grow their contacted at [email protected]. opportunity/nondiscrimination institution. For information/address change: Business Research Division 420 UCB, University of Colorado Boulder Boulder, CO 80309-0420 • 303-492-8227