La Plata Business Report 2010

Inside the ReportThe Durango Farmer’s Market: A Growing Business

The 2010 Business Report: What’s It Going to Take to Survive?Networking in the Digital World

2 La Plata County Business Report July 25, 2010

La Plata County Business Report July 25, 2010 3

PublisherRichard Ballantine

Sales & Marketing DirectorDennis Hanson

General ManagerSharon Hermes

Design ManagerBrady Sutherlin

Magazine Editor/DesignerDave Ohman

Advertising Design/PrepressMitchell Carter, Brady Choate, Jennifer Dickens, Laney Peterson, Michelle Uhl, Tracy Willbanks

Advertising Sales ManagerDominick McCullough

Account ExecutivesDarryl Hunt, Karolann Latimer, Shawna Long,Larissa Lopez, Debby Morgan, Susan Wright

A publication of:

Advertising Department

The Durango Herald uses reasonable effort toinclude accurate and up-to-date information for its

special magazine publications. However, all generalinformation comes from a variety of sources andmay change at any time for any reason. To verifyspecific information, refer to the organization or

business noted. To view the online version of thisguide, visit: www.durangoherald.com

On the cover:Emily and Mike Jenson, owners of

Homegrown Biodynamics Farm at the Durango Farmers’ Market

Photo: Dave Ohman

4 Welcome

6 The Farmer’s Market:Locally-Grown Foods

20 The La Plata County Economic Review and Forecast: What It Will Take to Win

36 Will Networking with SmartPhones, Laptops,iPads and the Internet Help Your Business Grow?

INSID

E


In the course of preparing thisreport, the news involvingdomestic and international eco-nomic policies, events, unem-ployment data and theprospects for job creationseemed to change daily. Thisrequired expanded research to

compile relevant information our readerscan use.

If anything defines the half-waypoint of 2010, it would be cautious opti-mism. On July 8, the InternationalMonetary Fund (I.M.F) reported that,the world economy will grow faster thanexpected this year. Unfortunately, therecovery remains overshadowed bymajor risks, and the pace of growth islikely to slow next year. It almost soundslike good news. And therein is part ofthe problem in forecasting any sort ofrecovery. And bad habits on Wall Streetremain hard to kill which means pullingout of this recession can still feel likeskydiving: you hope everything works.

Depending on which economists,politicians and pundits you favor, wemay have hit the bottom of this reces-sion. Or, not. As most European andAsian leaders at the recent G20 confer-ence in Canada opted to trump furtherstimulus spending in order to cut theirrising deficits, the Nobel-winning econo-mist at Princeton University, PaulKrugman, is warning of another 1937scenario when the Congress decided tocut stimulus spending. History tells us,he noted, that decision to pull back justas the economy was slowly coming outof The Great Depression’s deepestpoint of 1929-31, actually reversed therecovery’s momentum.

So one of the questions for La PlataCounty’s economic recovery will con-cern our isolation from sluggish majormetropolitan cities, and whether or notour isolation can translate into insulationfrom a possible double-dip recession.

Businesses and local governmentsacross La Plata County are already

experiencing what has been takingplace throughout the nation: getting bywith fewer employees and the risingprospect that employees who lost theirjobs since the fall 2008 meltdown ofWall Street will not be invited back towork. While technology is not the pri-mary culprit in lost jobs, it will be tech-nology that helps the survivors adjust to,and accommodate, the future.

Our cover story salutes the DurangoFarmers’ Market and the many vendorswho come from near and far to sell theirproducts. In particular, we are highlight-ing foods grown by local farmers andranchers using sustainable and holisticpractices. They are a source of pride forall of us, as well as an opportunity toeat healthy while supporting local farmsand ranches. While not all are in LaPlata County, their presence doesenhance the Farmers’ Market experi-ence.

We also report on how entrepre-neurs can tap into communicationstechnology including the internet andthe Smartphone technology, to helptheir businesses survive and thrive inthese uncertain times and the future.

As you peruse our second annualLa Plata County Business Report, you’llsee that optimism and a willingness toevolve are key components in position-ing governments and businesses forsurvival and growth during and after therecession. Given that most economistssuggest that recessions will likely occurmore frequently in the future, albeit withless impact than this one, there arelessons to be learned. We hope thisreport offers some helpful insights onthe important issues affecting our localbusinesses providing the jobs that keepour economic engine running.

We wish you all the very best for2010 and look forward to your feedback.

Welcome Back

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Over the years, an impres-sion has emerged thatfarmers’ markets wereplaces where you couldfind fresh meat andorganic produce as long

as you had plenty of disposableincome.

That may be true in the up-up-scale communities of Beverly Hills,Silicon Valley, Chicago and theHamptons. Not so in Durango.Farmers' market prices are a littlehigher than found in super marketsbut, consider that large “industrial”farms produce foods grown for max-imum profit using pesticides to killinsects while poisoning the soil.

When it comes to livestocksuch as cattle, sheep and pigs,grazing on pesticide-free grasses,their growth is all natural, notenhanced with corn or growth hor-mones. For instance, at industrialfeedlots where large numbers ofcattle are confined into crowdedcorrals, there’s no grass for grazing.Instead, corn is fed in inordinatequantities to livestock and poultry tohasten and enhance the growthprocess. Cattle will not stop eatingwhen they are “full.” In fact, they willkeep eating as long as the food is

available, which means they will eatthat corn non-stop all day, every day.Therefore, let them graze on grass-es where our local farms and ranch-es focus on sustainable, ecological-

ly holistic farming practices. Whilethis results in higher costs of pro-duction, the quality of the yield is farsuperior. Local meat processor,Sunnyside Meats, is preferred bymost ranchers for their humanepractices and sustainable recyclingsystems. All of which makes thefarmers’ market so valuable to ourlocal economy and our health.

For anyone who has made theFarmers’ Market part of theirSaturday mornings, you know thesights, sounds and aromas of thisweekly event.

Displays of vegetables andflowers glow in the morning light;the massage booth is already busygetting the kinks out of sore mus-cles; meat samples are cookingsending wafts across grounds. Thecoffee is hot, the breads and pas-tries are fresh and the air is warmand friendly. Hydration Station man-ager, Steve Van Buskirk, arrangesfor local musical entertainment.

From large ranches to smallfarms, these are the people whodefine the colors and textures of thefabric binding our local culturetogether. And they deserve oursupport. Here are a few examples.

COVER STORY:

“When you shop locally, you support thelocal economy. When

you support local farmers, you are sup-

porting the local econo-my and the local

ecology.” Dan James,

The James Ranch, andboard member of the DurangoFarmers’ Market

Stories and Photography: Dave Ohman

V



Richard Parry, the third generation ownerof this farm, along with employee AndrewSterling, took me on an extensive tour ofFox Fire on a late spring morning.Richard continues to create and improveupon the family tradition of holistic organ-ic farming overseeing the 1,100 acres,900 of which are certified organic soil,

including the relatively new vineyard where the grapesare grown for Fox Fire Farms wines. The wine tastingroom is open 1-6 p.m. seven days a week. But callahead to let them know you’re coming. Reservations arealso required for tours of the entire farm where you canalso visit the original school house which has beenrestored.

Sustainable agriculture is a family tradition atFox Fire Farms, from very efficient irrigation technologyto the rotational grazing using multi-species herds.

Multi-specie herds of cattle, sheep and goatsmeans a more controlled grazing process since eachspecie grazes differently from the others. Herds aremoved about in a grazing rotation process throughoutthe ranch. The constantly changing grazing habits andvariations of manure nurture the soil that grows thegrasses that feeds the animals. This eliminates over-grazing by any one specie. It's also about the varieties ofmanure. If each animal, with its own metabolism, is get-ting the proper foods while grazing in these pastures, theresulting, and unavoidable manure means soils rich inthe nutrients needed to grow the grasses for said graz-ing. The farm is populated by 500 chickens, 16 heritageblack pigs, 150 head of cattle and, from South Africa,200 (Bore meat) goats and 1,200 Dorper Sheep.

Located a few miles southeast of

Ignacio, among spectacular rollinghills and pastures,Fox Fire Farms is a classic example

of sustainable, holistic farming.


Photo Spread: Multi-specie herds of cattle, sheep and goats means a morecontrolled grazing process since eachspecie grazes differently from the others.

Inset: Pasture-grazed heritage black pigsare also moved around the farm to add tokeep pastures in top condition.


One would wonder how chickens roam freely without vulnera-bility to predators. Fortunately, two Great Pyrenees dogs keepthe proverbial fox from the (mobile) hen house affectionatelyreferred to as the “eggmobile.” These dogs bond with otheranimals at an early age so, as puppies these dogs wereraised around chickens and are now devoted protectors forevery one of their feathered friends.


The irrigation system isvery water-wise. The waterflows downhill from the VallecitoDam, a project Richard's father,Evan, helped build as a civilengineer in the 1930s. Thereare two primary ponds provid-ing gravity-fed water to the irri-gation system covering 560acres. As the gravity-fed watersystem eliminates the need forelectric pumps, the water issprayed out with a system of K-Line spray heads, an inventionof a New Zealand dairy farmer.

Fox Fire Farms selectionsinclude soy-free eggs laid byseveral breeds of chickens.These birds are pasture grazed(not to be confused with “free-range”) where they dine ongrasses and bugs. The bugsprovide a natural source of pro-tein, a nutrient denied to factorychickens penned up and fedeverything but grass, bugs and

fresh air. Healthier chickensproduce better eggs.

One would wonder howchickens roam freely without vulnerability to predators.Fortunately, two GreatPyrenees dogs keep theproverbial fox from the (mobile)hen house (affectionatelyreferred to as the “eggmobile”).These dogs bond with otheranimals at an early age so, aspuppies these two dogs wereraised around chickens and arenow devoted protectors forevery one of their featheredfriends. The eggmobile allowsthe chickens to be transportedto wherever their grazing habitsare needed.

Fox Fire Farms also pro-vides certified organic beef tothe 9-R school district as wellas the schools of Ignacio,Cortez and Pagosa Springs.

The wine tasting room is open 1-6 p.m.seven days a week, but call ahead to letthem know you're coming. Reservationsare also required for tours of the farm.(L-R) Andrew Sterling and Richard Parry.


These cattle, central characters in the“Lonesome Dove” series, may look abit out of place in these parts butthey have a lot to offer. Jeff has writ-ten extensively on the history of theLonghorn, a descendant of Spain'sAndalusian cattle brought, originally,to the Western Hemisphere by

Christopher Columbus. Jeff wrote, “The first cattleto set foot in North America, and the only breed ofcattle to evolve without human management, theTexas Longhorn is a genetic goldmine.”

The years between 1868-1878, whenLonghorns were driven north out of Texas toKansas City's railheads, amounted to the largesthuman-driven migration of animals in the historyof the world.

This is Sancho Panza, reigning monarch and breeding

bull at Santa Rita Ranch.

When LindaMannix gave herhusband, Jeff, aTexas Longhorn for his birthday,

neither knew thiswould evolve into

the Longhornsbeef business.


Linda Mannix offers a little TLC to Flash Gordon (a.k.a.Gordie), a retired steer who spends his remaining days inthe “assisted living” corral.


One of the reasons for their original popularity was thatLonghorns evolved genetically to take a punishing climatewhile grazing on all manner of plants unsuitable for any otherbreed. Then there are those unmistakable and glorious hornsof the breed that stand out from all others. Before becomingthe stuff of western-themed décor, they served the originalowners well. For cows, the tips of those expansive horns arecurved backward to defend against predators such as wolvesand coyotes. For bulls, the horn tips curve forward to fight offother bulls seeking to become the leader of the herd.


Before Hereford cattle werebrought from England, the Longhornbecame ubiquitous from the south-east to the southwestregions of the new nationfrom the 16th century to theend of the 19th century.They provided the beef andthe finances to pull the stateof Texas and the West, outof a huge recession follow-ing the Civil War.

One of the reasons fortheir original popularity wasthat Longhorns evolvedgenetically to take a punish-ing climate while grazing onall manner of plants unsuitable forany other breed. Then there arethose unmistakable and glorioushorns of the breed that stand outfrom all others. Before becoming thestuff of western-themed décor, theyserved the original owners well. Forcows, the tips of those expansivehorns are curved backward to

defend against predators such aswolves and coyotes. For bulls, thehorn tips curve forward to fight off

other bulls seeking to become theleader of the herd. As shown in theaccompanying photograph, thebreeding bull at Santa Rita Ranch,Sancho Panza, is an imposing fig-ure “with an eye for the ladies,”according to Linda. His prodigy arescattered throughout ranch. Then,there is Flash Gordon (aka

“Gordie”), a retired steer who lives acomfortable life in his golden years,sharing the “assisted living corral”

with a couple of retired cows.The Santa Rita Ranch is the

only local ranch raising TexasLonghorns for natural beefsales. Their hormone-freeLonghorns have been grass-raised, and grain finished (withbeer mash (from theSteamworks brewery, no less)resulting in beef with “a fat andcholesterol content of the lean-est seafood,” according to Jeff.

So if you happen to strollinto the Durango Farmers’

Market, you are sure to find Lindaand Jeff Mannix offering samples ofLonghorn meatballs and sharing the lore of their Texas Longhorns.It’s “history on the hoof."

Linda Mannix with Jeff Mannix in background


With 400 acres of the mostcomely pasturelands imag-inable, beef cattle andJersey cows are 100 per-cent grass fed, resulting insome of the best beef and

milk to be found. Even their chickens grazeabout feeding on the grasses while picking offthe insects in the process. The portable hen-house is moved about the ranch to allow thechickens to eat more insects that could harmthe grasses needed for grazing. What? You did-n’t know that chickens like bugs? Their sys-tems thrive on insects which results in thehealthiest of eggs, another product of theJames Ranch family of businesses.

The ranch has different businesses, allof which are run by members of the family. Kayand Dave operate the beef cattle business; theirson Dan with his wife Becca run the ArtisanCheese and “Whey-Good Pork” side; Julie andDon Ott are in charge of the trees and eggsbusiness; while Jennifer and her husband JoeWheeling have been operating the garden business.

James Ranch beef is so well-known inthis region, instead, I would like to put the focuson two other businesses at James Ranch: TheArtisan Cheese and Whey-Good Pork, and theGardens at James Ranch.

So let’s begin with the Artisan Cheesesof Dan James. I arrived at the James Ranch towatch Dan up close, in the clean room, start thecheese-making process. In one temperature-controlled vat, fresh, raw cow’s milk was beingstirred. In an adjacent, smaller vat, fresh milkstraight from the Jersey cows in the dairy waspouring in from a stainless steel pipe leadingfrom the milking station about 20 yards uphill.No pasteurizing; all natural.

The Animas RiverValley was once

known as the“Breadbasket for

Silverton.” Cradled in the heart of the

Animas River Valley,about 10 miles north

of Durango, is TheJames Ranch, afamily operation

front to back.In 1961, Kay andDave James pur-

chased four farmsand brought themtogether to create

what has become alandmark ranch.

Opposite: Jennifer Ott operates The Gardens at James Ranch


1 2

3 4


Jersey cows have a very rich cream content in their milk, perfect for making richcheeses. It's also in a room adjacent to theirmodest store and separated by a windowwhere shoppers and tourists can observe Danperform his magic.

You can see the cheese-making process byvisiting www.jamesranch.net. Later in the day,after all that stirring, he drains the whey and isleft with the cheese curd. The pigs at JamesRanch love the whey, and, what can I say? Italso makes better sausage.

Opposite page: The process of making theJames Ranch Aritisan Cheeses begins withmilk straight from the dairy. The milk, stillwarm, is churned until they whey can bedrained away (which will be fed to the pigs).The remaining curd will be used to make thecheese which must be aged for at least 60days before Dan can sell it.

At right: Pasture-grazed chickens love bugsso they’re transported around the ranch tohelp maintain healthy pastures.


Story and Photography by Dave Ohman


Is a jobless recovery possible?As the recession began to sinkin, companies across the coun-try starting laying off employ-ees. If those companies sur-vived with a reduced payroll,

they may have figured out how tomake do with fewer employees andwill continue to recover without hav-ing to bring back former employees,or recruiting new workers, as salesand exports improve. Some jobdescriptions have disappeared alongwith the jobs and the employees. Willthere be any jobs to come back to? Itdepends on who you ask.

Robert Reich, former Secretaryof Labor for the Clinton administrationand current Professor of Public Policyat University of Californa Berkeley,wrote in an OpEd in the NY Times(June 1, 2010) that while unemploy-ment figures remain high, the rate ofentrepreneurship and new businessstart-ups are on the rise. The“Kauffman Index of EntrepreneurealActivity” cites that new business start-ups are at their highest level in 14years. Normally, new businesses andconsultants arise in good times whenconsumers have money to spend. Butwith the recession and such a highunemployment rate, there has been a corresponding urge for out-of-workprofessionals to start their own busi-nesses as one of the last remainingopportunities left to them. In thepast, according to Reich, it was the35-44 year-olds that propelled thestart-ups. Today, it is the gray headswho are leading the charge into self-employment if only for their own sur-vival. Consider: the ranks of the self-employed over 65 expanded by 29percent. With human resources man-agers trending nationally toward hir-ing those who already have jobs,rather than hiring the unemployed,those figures are not really surpris-ing.

While self-employment is not foreveryone, challenging times likethese are demanding new thinking.”

La Plata County at Large

How does that translate forLa Plata County?Comments among localentrepreneurs and civicleaders are a mix of hope-fulness and relief that it

doesn't seem to be getting anyworse. So far. La Plata County's con-cerns for the future are a mix ofhope, fear, optimism and uncertainty.

Recently, I met with Kellie Hotter,one of three members of thePlanning Commission, and CountyManager, Shawn Nau, to discusswhat the county is doing to preparefor a future fraught with uncertainty.Nau was very clear that the strategic

plan was exactly that: a plan for long-term solutions. Given the economicdownturn and the resulting drop intax revenue, the county is preparingfor a future with demands and expec-tations relative to the needs of thepeople and county governance.

With the needs for mandatoryand discretionary spending vying forthe reduced revenue, certain cost-cutting measures are necessary tostill meet those needs. In manycases, as a county job positions isvacated, there is a strong likelihoodthat it will not be filled. A lot of busi-nesses that have had to do more withfewer employees, and getting com-fortable with that paradigm, the coun-ty, too, will make adjustments, includ-ing the expansion and refresh-

THE LA PLATA COUNTY OVERVIEWSince our premiere edition of the La Plata County Business Report,the economy, from international,

domestic and regional, is still hobbled by uncertainty for the

future. With unemployment hovering at, or near, double-digit

levels nationally, can there really bea recovery sooner rather than

later? Some economists suggestthe possibility of a "jobless recov-

ery." For millions of unemployedAmericans, that’s an oxymoron.Sustained high unemployment

could force more consumers andbusinesses to seek, and use, more

unsecured debt since the creditmarket has become tighter.

The largest banks are still holdingonto the bail-out money. If entrepre-

neurs can't get credit to start orexpand their businesses, their

survival can be thrown on thin ice.This, in turn, affects banks alreadyfeeling the strain of a weak econo-my as borrowers find it more diffi-

cult to pay off those lines of credit.Gains made in the economy couldbe all for naught if unemploymentremains this high, or worse, if the

economy takes a turn into a double-dip recession. As with the story

about the European banks, ourbanks large and small are planning

on maintaining larger cashreserves to cover loan defaults and

other credit risks.


upgrading of the computer systems.As we all know, as the technology isimproving, it can also take charge ofmany tasks once performed by peo-ple.

Within the county, there are sev-eral departments and agencies andeach one has a plan while workingwith the County Manager. By work-ing together and individually, to sortthrough the budgets, each depart-ment reduces the potential for con-flict, also known as, “Whose ox isbeing gored?”

Durango

Meeting with DurangoCity Manager, RonLeBlanc, there is asense of stability atthis point in 2010.With a current popula-

tion of about 17,000 residents, andholding, LeBlanc believes Durango ispoised well for the future. The city'sefforts to create a brand seems tobe paying off with the figures show-ing increases in airport use.

Real estate and construction isoff with the two largest projects,Three Springs and Twin Buttes,stalled as buyers from out of stateremain unsure about the economyas a whole. Retirement portfolios ofpotential homebuyers have seenlosses threatening the sense ofsecurity for those seeking to retire in

Durango. “The boomers are visitingbut just not buying,” said LeBlanc. Healso noted, “Given our current demo-graphics and a nearly 25 year inven-tory, a true recovery for real estateand construction is a long way off.”

A Land Use Development Codecalls for more density in the down-town area, more open space,expanding the trail system, upgrad-ing the water system, better streetdesign, and maintaining our infra-structure at high levels includingimproved internet access.

Bayfield

Town Manager Justin Cliftonis taking Bayfield to thecutting edge of communi-cations technology and islooking forward to a well-connected future for the

town. With a plethora of cascadingdata, he is prepared to share thedetails of every plan and conceptneeded to take Bayfield to anotherlevel and beyond. What you quicklydiscover within Clifton's openingremarks is, Bayfield, with a popula-tion of about 2,000 inhabitants, is atown with a keen vision for thefuture. And unlike La Plata Countygovernment, most of Bayfield’s taxrevenue comes from sales taxes, notproperty taxes. A spike in that “salestax capture” can happen when smallbusiness, open their doors offeringthe kinds of merchandise and ser-vices that residents had to find inDurango.

Bayfield’s finances are managedwith a conservative flair. As therecession pulled revenue baselinesdownward, a keen sense of budgetmanagement allowed the town toreset some priorities, work with man-dated services and create an operat-ing reserve of 40 percent, which istwice the normal 20 percent model.

How has Clifton been able toachieve the seemingly impossible?There have been some personneladjustments without layoffs. In some

cases, specific job descriptions havebeen modified to utilize newer tech-nology. Water meter readers no longwrite everything into a log bookwhich could take up to 150 hourswith transcribing into the records.Now, it all happens with wirelessdata devices taking readings fromnew, wireless meters, all resulting ina mere 10 hours to accomplish themission.

Other cost-saving measuresinclude pay freezes, energy savings(such as turning out the lights inrooms and hallways that are not inuse), and advances in electronicconnectivity.

To help attract businesses with aneed for his system, in turn, shouldhelp to attract high tech companiesBayfield’s communications technolo-gy is partnering with Durango andLa Plata County to create an “openaccess network” connected to LaPlata County’s “Fast Track” fiber opticsystem. This expanded broadbandsystem will be built to handle a lotmore traffic. The costs for expandingthe fiber-optic network will be in partbe a $400k share of a $4 milliongrant from the Department of LocalAffairs secured by the newly formedSouthwest Colorado Council ofGovernments.

Taxes paid by tourists passingthrough are usually from sales alongthe 160 East corridor while it's thelocals who keep sales alive alonghistoric Mill Street. Other sources ofsales tax revenue come from eventssuch as the July 4th celebration andthe Pine River Classic, an interstatebasketball tournament which drawsa significant number of visitors fromout of state.

As for construction and develop-ment, 2009 saw a surprisingincrease in building permits over2008. Springtime is the usual periodfor most building permits and, as ofmid-June of this year, Clifton is cau-tiously optimistic about 2010.


Ignacio

This is a community of 720full-time residents with adream to attract tourists witha passion for the arts. I metwith Kacey Correia, ownerof Ignacio Floral & Espresso

and head of the steering committee,and local cattle rancher, CarylSchmid, who, with her husband, Cliff,own the nearby Schmid Ranch.

The Town of Ignacio has notexactly been known as a tourist trap,perhaps, but chance upon the oppor-tunity to meet with local leaders andyou quickly discover an endearingsoul struggling with the real and per-ceived sense of isolation, the highsand lows of tourism and the ebb andflow of energy production. Meanwhile,the businesses along its main thor-oughfare, Goddard Avenue (Hwy.172), are affected by the frequentrumblings and dust of tractor-trailer

rigs shattering the peace. Today, townplanners and the local steering com-mittee are actively pursuing a com-plete makeover to attract day-tourists.

Correia said “We’re campaigningto wean Ignacio from its dependenceon ever-shrinking government grantsand the sagging fortunes of the ener-gy industry, to become more self-sus-taining. The goal for Ignacio's plan-ners is to convert a wish list into amandate for prosperity.”

To get the ball rolling, the Townhired landscape architect, JamesDietrich, to redesign the GoddardAvenue/Hwy. 172 streetscape, whilestore fronts are in for remodeling, aswell. And if Ignacio Floral’s new patioentry is any indication of the baselinestandards in progress, their vision forchange has serious momentum. Forinstance, with outside sources of rev-enue, such as state and federalgrants (lower in the short term), andenergy (looking more unreliable in thelong term), Ignacio is reshaping its

future as an "arts destination." This isthe brand they believe will separatetheir town from “the herd,” as it were.This is a strong concept because,while the casino is a strong touristdraw, it's important for the town lead-ers to differentiate Ignacio brand fromother Four Corners communities.Correia, with Ron Yellowbird, an ener-getic local artist and visionary, areworking together to promote the arts.They see this project as more of amovement than a concept. It’s a long-term program that will increasinglyattract the kind of tourism that createsmore foot traffic for business ownersalong Goddard.

With property taxes stabilized, thelong view for needed tax revenue willcome from sales taxes paid as aresult from a “Think Local, ShopLocal,” campaign for supporting localresidents and businesses.

One of the ideas to be imple-mented is a local “currency” consist-ing of a brass coin that will be circu-


lated throughout the business com-munity by customers who, in turn,will help to create more communityawareness of the diversity amongstlocal businesses. They believe thatas residents use these coins, astrong affinity link will developbetween customers and local busi-ness owners thus resulting in a yinand yang that will support the townas a whole.

Along with Ignacio Floral &Espresso, Roots Natural Food Storehas continued to do more than sur-vive as Amy Stuck and Jeff Ogdenhave made their store a fixture onGoddard Avenue owing, in part, tothe Ignacio spirit of thinking locally.

This is also a town that under-stands the effects the recession hashad on everyone. For instance,Correia also owns other propertiesincluding residential units and sheknew that some of her tenants werehaving a tough time paying the rentas their incomes became morestrained. So rather than deal withvacant units and a loss of revenue,she opted to lower the rent to helpher tenants in tough times while alsomaintaining a positive incomestream on the properties.

Lodging

One indication of positivenews has been the reser-vations coming into theRV parks. For instance,with so many “regulars”coming back year after

year, parks such as the Alpen Roseon the 550 are booked out throughthe season, according to managerJoan Beverly. “In fact, many of cus-tomers stay for the entire seasoninto October,” she said. Walkingaround the Alpen Rose RV Park, thesea of million-dollar RVs bears thisout,

The Durango Riverside RV Park,nestled between the 550 and theAnimas River near Baker's Bridge,has enjoyed a fully booked summer.

“We're slammed,” said general man-ager Melene Scott. While the reces-sion may be affecting some travelplans, she notes, “We are way above2009, which was better than 2008.Guests are coming in from Texas(the majority), Arizona, Albuquerque,and even as far as the East Coast.And we’re getting about 90 percentof our bookings online. Even retiredsenior citizens know how to Google,so we get them, too.” In the off-season, they offered a 35 percentdiscount and that generated a lot ofrepeat business without becoming aloss-leader. Noting signs of confi-dence, she said, “With the waythings are going, we are planning onsome remodeling, adding more river-front cabins and making more roomfor those really large RV’s (40 feet

and longer).”However, as in 2009, reserva-

tions do not have the lead time of afew years ago when summer book-ings were established by the end ofthat February. Now some of thosereservations are being booked aweek or two before guest arrivals.Some park the RV and stay until theend of October.

Even the Haviland Lake camp-ground with its first-come-first-servesystem, has had campers lined up atthe gate nearly every morning thissummer, according to assistant host,Richard Gregory. We’ll have to seehow the hotels and guest ranchesfair by the end of the season. Aswith 2009, reservations are comingin but without much advance noticecompared to past trends.

Durango Riverside RV Park sits between the 550 and theAnimas River just south of Baker’s Bridge.

The Alpen Rose RV Park, just north of downtown Durango, is a busylandmark from spring into autumn.


BankingAmong our local banks, Bank of the San Juans, and

Pine River Valley Bank have done a great job in navigat-ing the troubled waters that have swamped much largerinstitutions.

Pine River Valley BankAs the only member of the State Banking

Commission from our neck of the woods, Dan Ford,President, CEO and founder of Pine River Valley Bank,has a special perspective on the banking business. Fordnoted that, unlike larger banks on the Front Range, whichtook some severe hits following the Wall Street debacle in the fall of 2008, our local banks took a more prudent,home-grown approach to the needs of local banking andlocal customers.

For instance, according to Ford, “One would presumethe board of directors of any given bank will provide pru-dent advice to the bank’s management team.Unfortunately, too many boards are made up of candi-dates with little or no banking acumen. So their advicefrom the boardroom may reflect more of their own per-sonal interests rather than the needs of the bank and thecommunity from whom the trust is given.” Mr. Ford, bycontrast, is pleased with his selections for the bank’sboard.

So what is driving the success of this bank? Alongwith a healthy capital-to-assets ratio, the bank’s market-ing has had to change with the times. For instance, theirmarketing campaign is based more on nurturing theirexisting customer base rather than pursuing new cus-tomers. Most successful entrepreneurs will tell you it isless expensive to get repeat business than to find newbusiness. So the focus turns toward improving customers’lives by providing additional profit-generating servicessuch as loans and accounts. This also eliminates theexpense of various loss-leaders in their marketing com-munications.

Dan Ford,President andCEO) of PineRiver ValleyBank. Photocourtesy ofPine RiverValley Bank

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Bank of the San JuansIn an interview on April 21 of this

year, Art Chase, CEO and founder ofBank of the San Juans, was guard-edly optimistic about the prognosisof our local economy, an analysissimilar to last year's report. Thoughthe bank is not capitalized to acceptthe risks associated with 30 yearmortgages, they do originate thoseloans before handing them off to amortgage lending company.

While new homes sales aredown, remodeling has been a favor-able option for homeowners who liketheir current location or simply can’tsell their home in this slow market.Thus there is a resurgence of homeequity loans for home remodeling,and those loans are originated andheld by the bank. In the past, thoseloans equaled up to 85 percent ofthe home’s evaluation. Now it’smore like a 75 percent limit on thatsame home evaluation. Other loansshowing an up-tick, according toChase, have been for used vehicleswhich are more affordable alterna-tives to the purchase of a new car ortruck.

“Some signs of the recovery arereflected in increased activity in sav-ings accounts by consumers savingfor a rainy day,” Chase noted.Frugality has just become morecommon among average Americanhouseholds since the recession wasofficially recognized by the FederalReserve and the Department of theTreasury.

Retail SectorIn our 2009 Business Report, timingwas everything when it came tointerviewing local retailers. In anearly unanimous response to ques-tions about sales performance in2008 vs. 2009, we were advised to“check back in September when thesummer sales numbers were in.”A common refrain in 2010 has beenthat while there seems to be a lot of

tourist foot traffic, there aren’t manyshopping bags in hand. So thetourists are here but will they spendtheir money this summer?

Southwest Appliance

Roger Sterling, owner ofSouthwest Appliance,seems to have a clearidea of how to maintaincustomer loyalty whilemaking adjustments to

accommodate the shifting anduncertain economy. He has notwavered in his model for customerservice. It sounds simple but, pickup the phone before the fourth ring;respond to customer messages in atimely manner; maintain the highestlevels of phone courtesy; never over-

promise or under-deliver; welcomethat walk-in, don't smother him. Inparticular, while maintaining thebrands that have helped bring suc-cess to the company, he has beenadding a broader price range withinthose brands. Historically, Sterlinghas carried a more middle-to-highversion of those brands and withgreat success. With the constructionand real estate market putting down-ward pressure on the sales of higherend products, he has introduced low

and medium price versions withinthose same brand groups.

Another way Sterling has adjust-ed has been to increase his servicestaff from two to six employees.With more people opting to keeptheir older appliances rather thanreplace them, Southwest Appliancehas created a business opportunityto service those customers, as well.This adds one more link in the trustbetween his company and the cus-tomers. By providing top-level ser-vice and repair, Sterling is also cre-ating a repeat customer who willmost likely buy their new appliancesfrom the firm that provided the ser-vice in the past.

Could sales be better? Ofcourse. However, in today's econo-my, a willingness to adjust the busi-ness paradigm before things couldget worse is how the survivors willbe poised for new growth as theeconomy recovers.

Appaloosa Trading Company

We also returned toThe ApploosaTrading Companyowners, Debbie andMike Gibson who’vebeen in business for

28 years. In last year’s Report, whenasked how they saw 2009, Mikesaid, “Staying even is the new up.”And while the recession has certain-ly had an effect on sales, they notonly remain undeterred, they arepoised for new growth. As they havedone since opening their doors, theycontinue to reinvent, innovate andcreate anew to remain fresh whilegenerating new excitement amongstrepeat customers and new.

Though the streetscape remod-eling at College Drive and MainAvenue dampened sales at theirstore near the train station throughthe spring, the Gibsons are gratefulthat the construction project wascompleted before summer. Sales areback to a fairly brisk pace.

The Gibsons are always gratifiedwhen old customers return and ask,

Roger Sterling, owner of SouthwestAppliance, with a few examples ofthe latest product lines.


“So what’s new this year?” Thequestion always arises because theirreturning customers know Mike andDebbie always have something newmerchandise to show.

Since Appalossa TradingCompany is the only store of its

genre in the region that makes all ofits own products, Mike continues todesign and/or direct the design andproduction of everything they sell.Years ago, the demand was outpac-ing their ability to make everything inthe shop. So Mike hand-picked the

craftsmen working with leather andsterling silver in Mexico usingAmerican hides that he brought tothe team. He recently returned afternearly 70 days at the Mexican facilityto direct and work with those arti-sans.

Backcountry Experience

We also revisited thethe sister-brotherowners of Back-country Experience,Becky and BenRockis. As the

recession was literally sinking in, theywere genuinely worried about theprospects for 2009. Instead, theyfound that families were opting for theoutdoor experience with camping andhiking as an alternative to expensivetravel plans. The summer had barelystarted as they adjusted to demand.This trend turned 2009 into a greatyear with 2010 showing positivesigns as well. Last year, the Rockis’

The Hermosa store is also headquarters forAppaloosa Trading Company


expanded their reach by openinganother four-season store in theVillage at Durango Mountain Resort.

Honeyville

How Sweet It Is! TheHoneyville store, about10 miles north ofDowntown Durango, isitself a tourist destination.The large colorful sign is

difficult to miss, even in the dark.During a tour with owner Danny

Culhane and his son, Kevin, it wasclear that family pride and integrityare seamlessly integrated into allareas of production and sales. As forthe recession’s effects on so manyretailers, Honeyville, on the otherhand, has not suffered any setbacks.

One of the major changes some years ago was to sell off their bee-keeping side of the business to a

local buyer and contract with a muchlarger commercial beekeeper inGreeley. The honey arrives in largedrums and is poured through arather high-tech (for the honey busi-ness) system of filtration and bot-tling.

As Danny noted, in order to han-dle the sales volume of this one andonly store, the beekeeping side wastoo expensive and time-consumingto meet that demand. Hence thedecision to buy honey from a firmthat could provide the volume andthe quality that is a hallmark of thecompany.

The result has been a steadyflow of honey from a reliable sourcecombining with the ongoing in-housequality control in filtration and pack-aging. This has translated into yearlyincreases in sales and profits.

In fact, there really isn’t an offseason since their sales continue tothrive with the holidays, catalog andweb sales and, of course, when thetourists start arriving in late spring,the main showroom rarely has aquiet moment.

With only the one store, distribu-tion to numerous other grocery andspecialty retailers, showroom visitorsand online customers.

Pet Haus

The Pet Haus, a pet supplystore catering to dogs andcats, started out at a fastclip and has not sloweddown since. In fact, keep-ing up with demand has

been the only challenge. Sinceowner, Louis Galinson, opened thedoors early last December, eachmonth has been better than the last.His business model was based onthe results of surveying more than200 dog and cat owners seeking astore serving northbound customersdriving home up the 550 or Floridatoward Vallecito. While CreatureComforts, and Healthy Hounds & FatCats continue their success,Galinson’s research showed thatfolks driving home northward upMain Avenue wanted a shop on thatside of town. The location he foundwas perfect but the old buildingneeded a lot of updating. Using hisown money, he created a masterfularchitectural remodel that combineda warm and funky playfulness, all

while maintaining professionalatmosphere. They also earned kudosfrom the Durango Design Board.

Galinson has not been surprisedby the store's success. He was sur-prised, however, by how quickly hisfirst inventory sold out during theholidays, especially as a new start-up. As he noted, “In hindsight, theonly problem we experienced wasbecoming so successful ahead ofschedule.”

So far, Galinson’s marketingplan has been simple: “We focus onwhat the people want, not what wewant.” He attributes much of that

success to repeat customers who'vebecome very loyal in very shortorder. One point of pride has beenthe creation of a successful alliancewith the La Plata County HumaneSociety. With some Society residentstaking shelter at the Pet Haus,Galinson and his staff have happilyplaced many dogs and cats intogood homes.

Kevin Culhane sets the controls to fill jars with fresh warmed and filtered honey.

Pet Haus has been less than ayear but has seen businessimprove each month


Rocky Mountain Pawn & Gun

Last year I checked in with a pawn shop inBayfield because pawn shops are a pretty inter-esting marker for how the economy is going. Thisyear, I spoke with Chris Burnett, manager atRocky Mountain Pawn & Gun. According toBarnett, 2009 was a fairly normal year. That is,

the old trends were still in place. A guy comes in to pawna power tool to get some cash to meet an immediateneed. He comes back and pays to take his tool home.

In 2010, the recession with its pressure on personalcash flow issues has resulted in higher quality, biggerticket goods being pawned with fewer “comebacks,” thatis, fewer customers coming back to retrieve their goods.

This means the shop may end up with too much merchandise and will have to soften pricing on goods on the shelves, or use some web sites to sell off over-stocks. For firearms, they may go through the web site,www.gunbroker.com. For other merchandise, they mayuse CraigsList.

Restaurants

Perennially busy eateries include The Lost Dog,The Olde Tymers’ Café, Carver’s, Steamworks,The Durango Diner, Lady Falkenburgh's, TheDiamond Belle (at the Strater Hotel) and othersin that affordable, casual dining side. All arehaving a very good year. Their menus swell

with fairly affordable fare including their days with burgerspecials. And burgers are selling well in a recession. TheOlde Tymers'Café packs'em in for their Monday burgernights. On Friday, The Lost Dog carries their $5 burgerwith $2 draft beers all day on Fridays. The Cosmopolitanoffers a happy hour James Ranch burger with a beer for$10 every day.

ENO: Wine, Coffee and Tapas Bar

Among the new business start-ups, ENO, thewine, coffee and tapa “bar” is in a great loca-tion with the right products, atmosphere andlocation for success. I met with manager andwine expert Allen Cuenca, to learn more abouttheir business plan and how it’s been going

since opening in the space formerly occupied by theDurango Custom Hat & Saddle Company.

Eno, shares a patio with the Cyprus Café providingample opportunity to capture spillover from the restaurantand nearby lodging guests who need a place to relax.This has all been quite by design as the owner, AlisonDance, who also owns the Cyprus Café, realized that ifcustomers had to wait be seated at the Cyprus Cafe, theymight perhaps go somewhere else for a glass of wine


and appetizer before returning fortheir table. However, it was notalways easy to get them back, soopening Eno was a perfect solutionto the problem.

Eno has been open for severalweeks and is already finding suc-cess easier than expected.

DurangoMountainResort

For Durango’s flagship skiresort, 2010 has been agood year for DMR as theski season got off to a faststart with early snow andplenty of it throughout the

season, resulting in a 6.3 percentincrease in skier days over 2009.

The 2010/2011 season will seesome changes that should bringsmiles to skiers and boarders alike.For instance, more trails, a winterMardi Gras, Lift #8 is being replacedwith a faster system with highercapacity and, there will be some ter-rain sculpting to create consistentextreme skiing/boarding runs. The2009/2010 season featured 18“Locals Days,” and this season will

offer even benefits for locals includ-ing more Partner-ship Passes withother Colorado resorts.

Meanwhile, as DMR basksunder the summer sun, the plazaand the mountain have been bustlingat a good clip. There are also somenew recreational opportunitiesincluding the Durango/Coco-ColaBike Park at DMR. Of course, moun-tain bikers can take their gear on thelift up the mountain to explore themany downhill runs.

Automotive

Our local automotive deal-ers were as vulnerable in2009 as the rest of thecountry. Chrysler becamepart of Italy’s industrialgiant, Fiat. Then GM went

under the knife after a governmentloan/bailout. Ford turned down asimilar bailout offer from the govern-ment and has since created its ownturnaround, albeit the companyremains deeply leveraged. This turn-around has been based on focusingon their core brand: Ford. Thus, in early June 2010, Ford MotorCompany announced the demise of the Mercury line since there wasnot enough brand differentiation be-

tween the Ford and Mercury brandsto justify keeping both.

Ford had already been workingto sell off their luxury brands, Jaguar,Aston Martin and Volvo. GeneralMotors’ decision to retire Pontiac,Oldsmobile and Saturn, while sellingoff the Hummer and Saab brands,was necessary to reinforce the bet-ter selling brands while sheddingthose brands with diminishing sales.Thus, Chevrolet, Cadillac, Buick andGMC brands will take on flagshipstatus with more investment in newengineering and styling. The resultsare already stunning as automotivewriters gush over the new selectionsfrom Detroit.

Economy NissanFor Monte Roder, owner of

Economy Nissan, things have beenlooking up since our 2009 interviewwith him. While sales of used vehi-cles remain important, there aresigns that customers are beginningto open up their wallets. Nissan hasdone a lot of advertising to supportdealers across the country. Anotherfactor in some of their sales was theToyota recall, a problem that testedlong-standing customer loyalty. Andbrand loyalty is a marketing mainstayfor nearly any business paradigm,especially for carmakers.

Skis and boards stacked up at “thebeach” in front of Purgy’s at DMR.

Economy Nissan keeps a steady inventoryof new and used vehicles on the lot.


Near the end of May, Roder also took his company toanother level in marketing by reinventing its web site.Along with a more contemporary look and feel, it is easi-er to navigate, provides video of the cars listed, and willlink to everyone in the company. Link to a particular salesrep and you will go to their second tier page. That mem-ber of the team can then maintain communications withnew and existing customers. The whole site has beendesigned to create “organic leads” with links to varioussearch engines. In the first week since the new site wasup and running, six potential customers arrived becauseof the new site. Three out of the six bought a car. That isa 50 percent response rate with closure, a result unheardof in direct marketing. As in last year’s interview, Rodersaid, “Innovation is a constant force for Economy Nissan.”Indeed, the age of electronic communications is not loston Roder and his team. Members of the sales team canmaintain contact with new and existing customers withSmartphones for texting or Tweeting to respond instantlyto questions or concerns a customer may have. If thesales rep is out on vacation, or for medical reasons, andcan't reach the customer, the “Carfinder” system willautomatically notify a customer, who had come in lookingfor a particular new or used car, that the car they wantedhad arrived.

When asked about reflections on 2009, Roder said,“Despite the shaky economy, 2009 was a good year forus and 2010 looks like it will be just as good or better.Staying ahead of the curve pushes us to innovate everyday.”

Morehart-Murphy Regional Auto CenterJim Morehart and Pat Murphy expressed a mea-

sured but upbeat tone reflecting a couple of seismicevents since GM accepted a government loan early in

A special sales event under way at Morehart-MurphyRegional Auto Center’s new showroom


2009: GM’s decisions to jettisonmoribund brands Pontiac, Oldsmobileand Saturn, as well as Hummer andSaab; then, recently landing the localChrysler/Dodge franchise.

“One of the things that makes2010 a bit better than ‘09 is, therecession and the bad news fromThe Big Three is old news today,”said Murphy. Buyers are seeing aclean slate, especially with automo-tive writers sending up promisingreviews of The Big Three’s offeringsfor 2010.

Repositioning GM’s remainingbrands is also driving sales. Forinstance, Cadillac’s rock & roll mar-keting has successfully shed itsimage as the car for an over-55buyer. Buick’s marketing, comparingitself to upscale Lexus lines, is alsotargeting a younger, upscale audi-ence (seeking more value) with afocus on the resurgent styling andengineering revolutions at GM.Chevy’s retro-but-dramatic Camaro,and the iconic Corvette, continue toprovide prime PR value for GM.

Morehart-Murphy should alsobenefit from the creatively aggres-sive, edgy national ads forChrysler,Dodge and Jeep. Cost con-trols for the dealership have alsoimproved as Morehart and Murphytook control of inventory manage-ment. They noted, “There was atime when the manufacturers con-trolled how much inventory we hadto keep on the lot. Whatever was onthe truck was what we had to acceptinto inventory. Now we decide howmuch inventory of each brand tokeep on hand.”

For Morehart-Murphy RegionalAuto Center, sales are up and costsare under control.

HeavyEquipmentSouthwest Ag (SWAG)

Southwest Ag was ourcover story last year sowe wanted to reconvenewith the Hillyer family tosee how 2010 is compar-ing to 2009. Garry Hillyer

spoke for the family to describesome of the adjustments they havemade to keep the company ahead ofthe game. To punctuate that gameplan, Garry noted their constant phi-losophy: “Adapt or die.”

So far, 2010 is doing better than2009 with a larger market share asthe company focused on their corebusinesses while increasing theirsales activities in used equipment.One of the “secrets” of their successhas been to not let complacencytrump the need to innovate.

Real Estate: Prudential Triple S Real Estate

Larry Gardner has been withthe firm for eight years andwhile he work on both resi-dential and commercial prop-erty deals, his perspectiveon the commercial side of

the business was particularly useful.While details remain confidential,

Gardner is involved with a couple ofpotentially large land deals suggest-ing that commercial property devel-opment will be on the upswing overthe next two years or so. If there areany inpediments in commercialtransactions, there are the sizeabledown payments of about 30-40 per-cent with a loan rate around 7-8 per-cent.

Overall, Gardner is optimistic fora real turnaround by 2012 with morelight manufacturing and retail devel-opment.

Coldwell Banker/Heritage House

In our 2009 Business Report,Gina Piccoli, partner atColdwell Banker/HeritageHouse, described a very longrecovery process for the realestate business. For an

update on this segment of our localeconomy, I asked Piccoli, who isalso on the Colorado Real EstateCommission, to compare 2009 withthe first-half performance of 2010and for a prognosis for the rest ofthe year.

“The fourth quarter of 2009showed improvement over the rest ofthat year while the first quarter of2010 also showed incrementalimprovements, as well,” she said.“With low interest rates and a wideselection [of properties], the gooddeals are here with investors movinginto this market.”

“Land sales are pretty muchdead in the water which meansthose potential buyers who mighthave purchased land to build theirhome, are finding that they’ll get abetter deal buying a house with theland,” Piccoli said.

Heritage House agent, LindaLogan, focuses most of her listingsand sales in the mountain areasfrom Hermosa to Cascade Village.She notes this is a great time to buyin the mountains. Logan reflected,“Back in 1981 an acre of land inPurgatory sold for $10,000. Just lastJanuary a lot sold for $115,000. Forinvestors or dreamers, this is a greattime to buy.”

In the credit arena, home loansare available, such as an 80/20 (20percent down) at a current interestrate hovering in the 4.0-4.375 per-cent range for a 30 year fixed rateloan. There also are FHA loans for97 percent of the purchase price, orjumbo loans with higher interestrates for those more expensivehomes of $500k and upward.


Wells Group

John Wells, owner/broker ofthe Wells Group, noted, “Wehave a feeder market for resi-dential sales, mostly fromNew Mexico, Arizona, Texasand California. And these

relocations are motivated by employ-ment, retirements and second, orvacation, homes. We shouldnt besurprised that so many visitors

eventually become residents.”Recently, Julie Houston from

The Wells Group, and SandyRatchford, Tamarron’s H.O.A presi-dent gave me a tour of Tamarron.Updating the look of the communityhas become a high priority in aneffort to upgrade and re-brandTamarron as a great place to live,rather than to just visit. This hasbeen a resort community originally

developed in 1973 with the lodgeand the Pine Cone condominiumsfollowed by a second phase, GambleOaks. The most recent phase wasthe Highpoint development whichhas undergone major renovations byKeystone Construction, while HighCountry Construction is currentlyrenovating Gamble Oaks. Upgradesand renovations for the Pine Conedevelopment are up for bid.Eventually, Tamarron will evolve intoa community of homeowners withsome rentals available.

Horizon Properties

Geof Schlittgen, owner/bro-ker of Horizon Properties,confesses to being anoptimist. It's an investorsmarket as he keeps hiseye on some of the big

hitters ready to jump in. He alsobelieves Durango is undervalued,especially compared to other RockyMountain towns with high profile

The Gamble Oaks development at Tamarron is undergoing a dramaticmakeover with completion scheduled for November 2010.


resorts and a diverse local economy.Lenders have gotten tighter on loanqualifications than a few years agowhile appraisals are sometimes diffi-cult because, with sales down, thereare fewer comps to work with.

Schlittgen also knows communi-cations with clients will depend moreand more on the electronics revolu-tion, yet, the one-on-one contact willnever be replaced. Even with emailand the web, the deal will requirethat real contact time. So how doeshe view the rest of 2010? The mar-ket seems to be picking up a bitthough the economy will continue tobe fairly volatile with threats of adouble-dip recession owing, in part,to the rumored jobless recovery.Nevertheless, he prefers to takethings as they come with guardedoptimism.

Indeed, Piccoli, Wells, andSchlittgen all agree that it is a greattime for anyone with the cash or asolid line of credit to buy a homewhile sellers need to be mindful ofthe amount of current inventoryavailable. The consensus suggestssellers should take a realisticapproach when pricing their homeand property based upon currentdownward pressure on the market.For buyers with cash in hand, they'redefinitely in the driver's seat.

Construction:

With new home con-struction down sig-nificantly, most con-tractors are takingon just about anyproject that comes

their way. For homeowners whobought their current homes becauseof location, remodeling the oldhomestead makes perfectly goodsense. First, while home prices andvaluations have dropped, it meansyou might not get as much for yourown house than you had thought.And even if you list your place, itmay sit on the market for a year orlonger. From a simple bathroomremodel to adding a room over thegarage or to expanding the house,contractors are offering lots of expe-rience in design/build, quality control,cost-containment and the latest inenergy and building technology asinducements to be selected for yourproject.

Durango/LaPlata CountyAirport

Statistical results fromDurango/La Plata CountyAirport show relativelystrong increases in pas-senger activity from 2009.As of April 2009, there

were 9,932 boardings. For April2010, there were 11,131 which wasan increase for April of 12.1 percent.And for the YTD, it was 18.5 percent.The higher March figures may reflecta lot of spring break activity targetingDMR and Telluride.

On May 21, The Durango Heraldreported that a name change for theairport was under consideration, duein part to the momentum in passen-ger traffic since Frontier Airlines

brought service between Durangoand Denver. The name floatingaround with the most energy isDurango Regional Airport, sinceDurango has more name/brandrecognition than La Plata County.

Some Durangoans have beencriticizing the name change simplybecause of the related costs includ-ing new signage and any and allrevised printed materials. Otherwork includes alterations to the mainintersection into the airport and this,too, has launched some local heatbecause of the deal with a Californiacontractor with a Denver office.Those concerns may be assuaged if that contractor hires locals for the job.

Healthcare

Mercy Regional MedicalCenter and AnimasSurgical Hospital aretwo of our largesthealthcare facilities.Earlier this year, I

asked Brett Gosney, CEO of AnimasSurgical Hospital, about how hisgroup is coping in the current eco-nomic climate and for his prognosisfor moving the quality of healthcareforward.

“The costs vs. the GDP (GrossDomestic Product) are steep whilethe vagaries of healthcare econom-ics give rise to consumer fears,”Gosney said.

As a physician-owned and man-aged facility, their success, Gosneysaid, “involves several dynamicsworking in harmony including shorterpatient waiting times, empoweringthe medical and administrative staffto make decisions without layers ofbureaucracy, treating patients ascustomers, and providing a billingsystem that is both comprehensibleand quick.”

Mercy Regional Medical Centeris our largest healthcare facility withadditional emphasis on trauma and

Geof Schlittgen, owner/broker ofHorizon Properties


critical care, a wide range of special-ists, and an array of medical imagingsystems.

According to Mercy’s public rela-tions and marketing officer, DavidBruzzese, as Durango grew, so didthe need for more specialists. Mercyhas expanded its roster of specialiststo include orthopedic, spinal cord,reconstructive/cosmetic,ob/gyn, ENT(ear, nose, throat), urology, podiatry,ophthalmic surgery, low-dose diag-

nostic imaging, and pain manage-ment. Our appetites for outdooractivities and sports has also neces-sitated the recruitment of sportsmedicine specialists.

In ReviewJack Llewellyn, Executive

Director of the Durango Chamber of Commerce and the La PlataEconomic Development Action

Partnership is in for the long haul.And it’s all about bringing more companies and jobs to Durango.And Llewellyn believes his groupscan attract the employers we'll needfor a real recovery.

As Llewellyn notes, in this reces-sion, as we look for new ways toattract other businesses to La PlataCounty, business survival is going to have a lot to do with an entrepre-neur’s ability to read the tea leaves,reinvent themselves, innovate withnew ideas for products and servicesand, above all, to never forget thevalue of customer service.

Fundamentally, economists, pun-dits, entrepreneurs and civic leadersare guessing on the how long therecession will last, and what it willtake to turn the economy around. Butone thing does seems abundantlyclear: surviving and/or thrivingthrough this recession feels likebuilding an airplane while in flight.

Mercy Regional Medical Center

Analogue. Digital. Google.Twitter (have you Tweetedlately?). Skype. eBay.Amazon. MySpace.YouTube. Facebook(“friend”: noun or verb?).

LinkedIn. Monster. Craigslist.SmartPhone. BlackBerry. Droid.iPhone. iPad. iPod. MP3. Wireless.WiFiSatellite. Laptop. Mac. PC. Stillwith me?

The Black Hole of Upgrades: Curse orBlessing

The technology in computersand now SmartPhones is advancingat such an exponential pace, whendo you jump in? When do youupgrade? Remember your oldpager? How about that PersonalDigital Assistant (PDA) aka PalmPilot, or Apple’s Newton? It was a digital appointment calendar,address book and reminder ofimportant dates such as birthdaysand anniversaries. Yet, have younoticed that Day-Timers are stillaround while those PDA’s are,ummm, obsolete? The fax machinethat began in the early 1980s is stillaround to serve the instant gratifica-tion needs of modern entrepreneurssending documents back and forth.But its days seem to be numbered.

During the early 1990s, beforeAOL and the squeaky dial-up modemthat gave us email, cell phones really

got some traction as they becamebetter and smaller. But no matter howsleek or compact they became, theywere still portable phones withoutwires.

Then, along came a Canadiangroup, Research in Motion, with theirBlackBerry. Now we could receiveand send email, text, and surf theweb, all on the fly.

However, along with “progress,”there is also foreboding to balancethe applause. For instance, whenSteve Jobs, Apple’s CEO, introducedthe iPhone to a waiting presscorpand multitudes of developers at theMacworld convention on January 9,2007, he had, essentially, pulled theproverbial rug out from under theBlackBerry, at least for the moment,even though an iPhone meant sign-ing up with AT&T. As a small com-puter, as well as phone, it sent allother cell phones into techno-purga-tory. But it looks like a recall is com-ing on the iPhone4 because of adefect. Stay tuned.

In the meantime, are we reallyhooked on this stuff or do thesedevices really deliver the goods asbusiness tools?

Can we really multitask with the gearand the app's. Are there dangers lurkingwith multitasking?

Take the recent story in TheNew York Times, “Your Brain on


NETWORKING INTHE WIRELESS

WORLD: WILL IT HELP YOUR

BUSINESS?Hunting for new business?

Trying to keep the businessyou've got? Can SmartPhones,

laptop computers, wirelessdevices, the internet, and socialnetworking sites make the word

“isolation” obsolete? On the150th anniversary of the first

Pony Express courier riding hell-bent-for-leather for 10 days

from St. Joseph, Missouri toSacramento, California,

it seems fitting to discuss therole technology plays in ourdaily lives, and for business.

The gadgets are out there to help you manage, monitor and

grow your business. From the necessary to the frivolous, it can be a daunting selection

of devices and services. Is ittime for you to wade out of the

shallows into the deep end of technology?


Computers,” by Matt Richtel (June 6,2010) about a Silicon Valley family offour obsessed with gadgets. Theycan’t stop texting, emailing, gamingand otherwise multitasking. Thosepesky but invaluable iPads andSmartphones are keeping the entirefamily plugged into the world but outof touch with each other, day in, dayout. Here are excerpts from thatstory.

Richtel reports, “…Tests atStanford, an important center forresearch in this fast-growing field,showed multitaskers tended tosearch for new information ratherthan accept a reward for puttingolder, more valuable information towork. Researchers say these find-ings point to an interesting dynamic:multitaskers seem more sensitivethan non-multitaskers to incominginformation.

“The results also illustrate anage-old conflict in the brain, one thattechnology may be intensifying. Aportion of the brain acts as a controltower, helping a person focus andset priorities. More primitive parts ofthe brain, like those that processsight and sound, demand that it payattention to new information, bom-barding the control tower when theyare stimulated.” For the entire storyand photo essay, visitwww.nytimes.com/2010/06/07/ tech-nology/07brain.html.

Is the PC becoming passé?

Enter the iPad: Smaller andlighter than a laptop computer; big-ger than an iPhone. Until recently,you still had to have a cell phone,too. Now Skype has offered an app’that allows you to use that iPad tomake calls. Perhaps the iPad's truevalue to the entrepreneur is the largeselection of business app’s and thetouch-screen keyboard that makes itfeel like an indispensable, portablecomputer. Plus you can downloadbooks and publications from any-where. Is there any adjustment toyour habits? You may find yourselfleaving the laptop at home. Thenthere are the tens of thousands ofapp’s to download. Is there a down-side? Apple still has a few years left

on their contract with AT&T so, youmay have to wait for AT&T to com-plete their 3G conversion of the Alltelsystem.

Search Engines and Social Networkingin Business

We’re not here to judge thevalue of these sites to your business.However, you will need to keep yourwits about you if you plan to registerwith any social networking sites. Alot of promises are made to theireffectiveness to communicate yourmessage. On the surface, thesesites appear as chat rooms and,unfortunately, gossip mongers. Isthis a safe environment in which towork? In some cases, yes. Promisesof online security on networking siteshave not been held in high regard asinternational hackers have a specialgift for breaking past firewalls toaccess personal and business datathat can be used to backtrack intocredit card accounts and bankinginformation. On May 25 of this year,the CEO of Facebook promised toinstall new and improved securitysoftware to protect subscribers fromhackers. If you are already aFacebook member, are you feelingbetter yet? Not much, eh?

And as of June 10, 2010,according to Nick Bilton, writing forThe New York Times, "Twitterannounced that it had acquiredSmallthought Systems, the companybehind an analytics service calledTrendly that tracks real-time changesand user trends for Web site owners.The announcement, which was post-ed on Twitter’s company blog,explained that as Twitter had grownto handle millions of messageupdates a day, analytics hadbecome an increasingly crucial partof improving our service. Twitter’sgoal in acquiring Trendly will be totrack users and their messageupdates as the site continues togrow.” Now do you feel better? Itfeels like a cyber version of a homeinvasion break-in to me.

Safety caveats aside, social net-working sites on the Web haveattracted millions of visitors whilelaunching new bands, actors, and

stand-up comics. Though most ofthese sites continue to bleed moneyby the millions, they remain consid-ered by some as the new and end-less frontier in marketing. Is this aforum for your advertising? For thein-the-know, that frontier is alreadyold news.

Social networking sites are thenew word-of-mouth advertising ascommunications become a functionof the moment. For instance, asidefrom the hot topic of privacy issues,running an ad on, say, BuzzTown orFacebook, could mean reaching alocally targeted audience or potentialcustomers in the hundreds of mil-lions. Can a chat room blog act as aword-of-mouth vehicle? Will it helpyour marketing efforts? Score bigpoints with a customer and the wordcan spread rapidly, hence, the term,“going viral.” But, if you or someonein your company sends a customerinto anger management therapy, thatnegative experience can reach thatsame large audience through Twitter,Facebook, YouTube, MySpace andseveral other sites, including somenew ones that have been created,believe it or not, solely for the dis-semination of negative banter.

For instance, Twitter may evenreplace Hollywood’s more respectedmovie reviewers. Why? Movie-goersare leaving theaters with cell phonesin hand texting and tweeting theirown reviews of the film just seen.Producers with high hopes for a bigsummer hit can see their dreamsrealized or evaporated as millions oftweets turn thumbs up or down onopening box office weekend. This isto say, your business can rise or fallwith each comment on a major net-working site via texting, tweetingand those aforementioned socialnetworking sites. Fingertips operat-ing as word-of-mouth, advertisingare now in control.

One site that relies on cus-tomers referring friends, family andcolleagues is LinkedIn, a social/busi-ness network site. As a member,let's assume you are either lookingfor new business or a job. You canvirtually broadcast your qualificationsand goals to either your list of“friends,” or to as broad an audience


as you like. The idea is, of course,that someone will see your informa-tion on LinkedIn and contact youwith the information you're seeking.

Are these the business tools you need?

Hey, you never know! Smart-Phones are operating as cellphones, computers, game rooms,web browsers, email systems, andcameras. What can’t they do?Perhaps too much. AT&T has foundits broadband system slowing downowing to too many recreationalusers with games, and other popularapp’s and this, in turn, has got mil-lions of iPhone users grinding theirteeth at night in frustration. It’s theequivalent of trying to pour tar into adrinking straw.

To find a solution to this prob-lem, AT&T recently announced thatthey are putting a cap on broadbandusage. Unlike the all-you-can-eatdata plan, there will be limits on theirtwo plans with the best choice beinga 2GB limit for $25 per month.Rumor has it that the other wirelesscarriers will follow suit.

David Pogue, technology writerfor the New York Times reportedrecently while evaluating the newDroid Incredible (available only toVerizon customers, so far) that whilethe Google-driven Droids arebecoming big competitors to theiPhone, there seems to be anothertop-of-the-line Droid being intro-duced every few weeks. But as thenews of Apple’s recall of theiPhone4 to fix the antenna and soft-ware (at a cost of about $1.4 billion),Droids are selling fast with a lot ofdisallusioned iPhone users makingthe switch to the Droids. Meanwhile,the BlackBerry remains the salesleader amongst the SmartPhoneset.

Are SmartPhones taking the laptop intoobsolescence?

For the management team,sales force and everyone in the sup-ply chain, this connection throughSmartPhones and touch-screenpads has also helped level the play-ing field for smaller companies com-

peting against larger firms. As thepace of business reaches the speedof light, you need to be nimble. LaPlata County business owners knowall too well the pitfalls and advan-tage of our remote location. So con-nectivity is crucial. With thousandsof business related applicationsavailable, you can connect with cus-tomers around the block or aroundthe world, coordinate communica-tions, conduct research, and transferdata and graphics.

Make your web site smarter

Nearly any business can benefitfrom a well-planned and designedweb site. Let’s say you’'re a home-builder with a web site. There’s thecompany profile, portfolio of projectsand maybe some projects for sale.And let’s say your client lives out ofstate, which means they can’t watchthe progress on the house beingbuilt. You tried to email some photosbut their ISP couldn't handle thatmuch data in one fell swoop.Solution: You can take your web siteto a higher level while making it eas-ier for your clients to communicateduring the project. You can includea client check-in link to review pho-tos at the job site, maybe even somestreaming video. In the navigationbar (or buttons), they can clickProgress. Then, by assigning a UserID name and a Password, your clientcan review the project in progress.You can also provide downloadablePDFs of change orders, contracts,estimates and invoices. Your clientcan approve suggested finish mate-rials such as, selections of paint,granite for countertops, wood floor-ing, interior and exterior finishes andso on. The primary caveat of onlinefinish samples: the colors will varyfrom computer monitor to monitor.Otherwise, you can maintain a highlevel of trust by keeping your clientin the loop through the web site. Infact, it can add to the client's enthu-siasm knowing they are part of theprocess. This is as much aboutretaining repeat business as muchas developing new business.

The technology of running a business is growing at warp speed and it's onlygoing to get faster.

In a business market the size ofLa Plata County, “pressing-the-flesh,”person-to-person contact andextending common courtesy willalways play a key role in developingand keeping customer loyalty. Butkeeping them in the loop will likelyrequire deftness in this electronicrevolution. Communications technol-ogy will continue to advance at amind-numbing pace, which meansyou and your company will have toadvance with it or make way for yourcompetitors.

Is this wireless revolution yourticket to ride? According to AnthonyMirhaydari, reporting for MSNMoney, “A team of Morgan Stanleyresearchers led by Mary Meeker hasspent considerable time on the sub-ject, publishing a research notenearly 700 pages long. The keytakeaway: Within five years, therewill be more mobile Internet usersthan desktop Internet users.

“Five trends are converging todrive the increase: faster mobilebroadband network speeds, the pop-ularity of social networking, onlinevideo, voice-over-IP technology andgotta-have-it mobile devices such asthe iPhone and the Droids. And it’smore than just phones. Tablet com-puters, netbooks, GPS units, e-read-ers and wireless home appliancesare all participating.”

Staying ahead of the curve or else

You should think about what youwant from technology. Are thereapplications that improve your con-nections with your customer base?Does the technology move the dealdown the road faster and better?There are a lot of applications tohelp you focus on your customerswhile keeping track of expenses andincome. If you have the right tools,you should be able to stay ahead ofthe curve.

La Plata Business Report 2010

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