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What’s driving the boomlet?

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Monday, June 15, 2015 3:20 PM

From Thai Restaurants to pawn shops, and skateboard shops to hair salons, this spring has seen a flurry of new small businesses open in Cortez.

The growth emerged a few months after state economic development data reclassified Montezuma County as economically distressed, a designation that allows it participate in the Enterprise Zone Tax Credit program.

Donna Graves, small-business adviser for economic development engine Region 9, says that it’s not only tax credits that are helping locals find the confidence to start their own enterprise, but financing programs offered through the agency.

“I know Region 9 has made a number of loans to small businesses, via small loans and gap financing. They’ve really helped spur a lot of this,” said Graves. She also points to the work of advising groups such as the Small Business Development Center, which offers consulting and links businesses to financing options.

“I know a lot of the businesses that have opened have taken advantage of the Small Business Development center, and the classes we’ve offered there,” she said.

Chris Burkett, economic development specialist with the Montezuma County Economic Development Agency, said there has been an uptick of people returning to the area, who have family here or grew up here because they see an affordable place with opportunity.

“They got training elsewhere and are bringing it home. They moved here because of relationship interests and again see opportunity. Downtown has become a little more vibrant with the restaurants,” said Burkett. The City of Cortez high speed Internet option/price (helps) folks see they can have a store front and do business over the Internet, and small-business space is available and rents are more reasonable than in Durango/Farmington.”

Entrepreneurs’ increasing confidence in the local economy is also validated by sales tax figures and new home construction valuation, two areas that have been seeing an unprecedented upswing.

“We’re actually having a hard time filling part-time positions ... which hasn’t always been the case. We have a lot of good positive trends, but we do have a lot of people still underemployed, but hopefully with the new construction new jobs there will be created,” said city manager Shane Hale.

Hale says sales tax collections were up 10 percent for the month of April, and up 8 percent for that period compared with 2014.

New home starts are also booming, with the city currently clocking $1.67 million in valuation of new residential construction since January, confirmed planning and building director Sam Proffer.

Two neighborhoods seeing the most growth are Brandon’s Gate and Southern Bluff, he said.

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