Economic Development And Sustainability Issues
Issue 1: Comprehensive Economic Model Analysis of the Appropriate Mix of Commercial, Industrial, Public Use, Residential and Tourist Accommodations to Support a Vital and Sustainable Economy
The City does not have established adopted policies, based on current, supportable data, that guide decision-making during the development review process relative to the number of visitors and residents necessary to support healthy businesses. Land use decisions are based on the 1995 Community Plan, the Community Development Code, and other adopted plans and policies. None of these plans and documents has considered the appropriate balance of land uses necessary to support a diverse and sustainable economy. A necessary precursor to such an evaluation is a comprehensive analysis of the amount of non-residential uses necessary to support the projected local and tourist populations. To achieve this goal, the Economic Development & Sustainability Working Groups recommends the following Policy and Action Item:
Suggested Policy: Evaluate the relationship between non-residential uses and visitor/residents for a sustainable, year around economy. Ensure a critical mass necessary for healthy businesses by evaluating, implementing, and making necessary adjustments in:
• Land Use Policies,
• Development Code Requirements,
• Budgetary decisions, including incentives, etc.,
• Community Impact.
Suggested Action Item: The City, in partnership, with other economic organizations and public entitles, should budget for an economic study that determines the appropriate balance between visitors and residents and non-residential land uses for a healthy sustainable environment.
Issue 2: Protection of the Existing Commercial Base
Existing businesses can suffer when new commercial/retail businesses are approved and established in the community. There is an ever-growing concern in communities across the country about the potential economic impact of new large-scale commercial growth on existing downtown merchants. While preventing new commercial development may not be practical, the Economic Development & Sustainability Working Group believes that a program that assists local businesses during this transition may help preserve the existing commercial base.
Suggested Policy: Ensuring that when new development happens there are resources to ensure the viability of the existing businesses.
Suggested Action: Direct resources to existing businesses, including:
• Infrastructure improvements
• Financing mechanisms
• Beautification projects
• Work with the Local Business Groups on the formation of a Independent Business Association (similar to the Boulder Independent Business Association)
• Complete a comprehensive analysis of the Community Development Code to identify and modify barriers or impediments to cottage/home-based businesses. The City should create a hierarchy of these uses to determine criteria for reviewing/approving cottage/home based businesses.
Issue 3: Varity of Local Goods and Services
The Economic Development and Sustainability Working Group believe there are insufficient businesses to serve the local community needs. Locals are forced to shop for some goods and services in other communities. Many of the local merchants provide goods and services that are oriented to the summer and winter tourist population. The concept of “plugging the leaks” seeks to ensure there are sufficient goods and services for the local population so that they do not have to shop outside the community.
Suggested Policy: Ensuring the “leaks are plugged” by providing support for local businesses that serve the goods and services needs of the local community.
Suggested Action Items: Support local businesses that provide services and products for the local community, including the following:
• Include local serving commercial zoning in the Development Code as a use by right.
• Conduct consumer preference survey to determine what good and services are needed.
• Conduct public education program.
Issue 4: Professional Educational Opportunities
There are insufficient professional educational opportunities in the community for it “to grow its own workforce” and allow community members to find stable, year around employment. The lack of opportunities also results in importation of a trained labor force that may displace or preclude the employment of the local labor force. While the Working Group recognizes that it is unlikely that Colorado Mountain College will become a State University or College, they believe the college and other professional organizations can develop curriculums that provide professional education that would be relative to the needs of existing employers.
Suggested Policy: Focus on making jobs not taking jobs. Stress entrepreneurship. Provide training and educational opportunities for youth and other community members to enable them to promote to higher paying or more secure jobs.
Suggested Action Items: Work with Colorado Mountain College, local employers, and the State Community College System to establish degree programs that will provide a trained local labor force.
Issue 5: Economic Analysis of the Community Plan Alternatives
The Economic Development & Sustainability Working Group believes an economic analysis should be conducted on the final community plan alternatives to determine the most socially, physically, and economically practical plan. Similar to Issue No. 1, the group believes decisions that affect land use, economic resources, natural resources, social resources, etc., should be made based on reliable and accurate data that includes the economic implications of the decision. The group believes this analysis should be completed prior to the adoption of the final plan alternative rather than as an action item of the community plan update. Consequently, there is not a companion recommended policy or action items that would be included in the Community Plan.
Issue 6: Increase Opportunities for Locally-owned Businesses Through Land Trusts, Co-ops, etc., that Acquire and Rent Affordable Commercial Space to Resident Business Owners.
Locally owned businesses increase the ability for money to recycle in a community, rather than exporting it to the headquarters of corporate-owned establishments. According to the Rocky Mountain Institute, “local ownership increases the wealth-creating power of each local transaction. Land trusts, co-ops, and employee stock ownership can ensure permanent local ownership of many businesses by buying local buildings and renting only to residents at low costs.” The Economic Development & Sustainability Working Group believes that high local commercial rents may preclude local residents from establishing and maintaining businesses in the community. Commercial land trusts or land banks that purchase and rent commercial space to local business owners at a non-market rate, similar to non-market rate affordable housing, may help to encourage the development and retention of more locally-owned businesses and keep profits circulating within the community.
Issue 7: Reliable Airline Service.
Past and present efforts to ensure reliable airline service to the county and or city airports have focused on tourism transportation needs. The Economic Development & Sustainability Working Group question whether the existing year around airline service is sufficient to meet the transportation needs of existing and future, non-tourist related businesses. Steamboat’s geographical location affects its ability to effectively use typical transportation modes, such as truck and rail. Consequently, there may be a greater reliance on air transport for the movement of goods, clients and employees. The Economic Development & Sustainability Working Group questions whether the present efforts to secure reliable airline service should be broader based and consider both the short and long term needs of existing local businesses and future businesses. The Working Group further realizes that reliable airline service may be a necessary component to a successful business retention and attraction program.
Issue 8: Cost Effective Recycling.
While the community is generally supportive of recycling efforts, its physical location makes large scale recycling cost prohibitive. Presently, recycled items are transported to Front Range locations for processing. Due to the high transport costs, large scale recycling for local businesses is not economically practical. The Economic Development & Sustainability Working Group support the development of local recycling operations, such as foundries that would not only create new products from recycled materials, but also have the potential to employ local workers. The group recommends the Community Plan consider appropriate locations within the planning area for these types of uses.
Issue 9: Sales Tax Based Revenue Structure Coupled with the High Level of Expectations for Services Makes the Community Over Reliant on Sales Tax and Retail.
The City of Steamboat Springs does not impose a property tax, and accordingly derives a preponderance of its general fund revenues from sales tax that is generated from the sale of all goods in the community. This coupled with the fact that the community has a high level of expectations for community services that are principally funded by sales tax could result an over reliance on uses that generate high sales tax, but may not necessarily provide the necessary goods and services. A shift from sales tax to property tax may prove to be a more stable revenue source for the community and reduce this potential over-reliance on high sales tax generating uses.
Issue 10: Achieving an Appropriate Mix of Manufacturing and Commercial Uses
While the Economic Development & Sustainability Working Group does not support a broad base Business Attraction Program, the group supports a focused program that would be based on the results of the results of the economic model analysis proposed in Issue No. 1. The group did not support an incentive based program, but one that would remove regulatory barriers and reduce geographical constraints that would hinder new or expanded desired commercial and industrial businesses.
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