Summit County Economic Sustainability

By Summit County

Economic Sustainability Element

Overview

All the other elements of the Countywide Comprehensive Plan, when combined, will go a long ways towards creating an economically sustainable community in the County. Issues related to land use, environment, transportation, housing, facilities, cultural resources, open space, recreation, trails, and the economy are not mutually exclusive. It is the intent for all elements of the Plan to work together to support sustainable development, enhance visitor experiences, and improve the quality of life of all residents. For example, preserving our open spaces, protecting our environmental resources, and maintaining our recreational amenities will help ensure that the County remains an attractive location for visitors and residents in the future. While acknowledging the contributions of the other portions of this Plan, this element provides additional guidance for planning and implementing a balanced and countywide approach to attaining a more economically viable community.

In principle, economic sustainability in any community is difficult to achieve and measure. Economic sustainability and development is influenced by market, physical, regulatory, financial, and political issues. Moreover, economic sustainability is a multifaceted ideology subject to constantly changing growth pressures. Therefore, whether it is at the federal, state, or local level, virtually all entities view economic sustainability and address economic development differently.

However, the fundamental purpose of economic sustainability or development is shared between all levels and types of policy and program decision making: to create and maintain an economically healthy community. According to the International Economic Development Council, an economically healthy community is one that satisfies all four of the following:

• Exports goods and services and imports cash.

• Meets public service needs/expenditures with revenues.

• Maintains a sustainable tax base.

• Provides opportunities for personal growth.

Factors considered critical to the success of an economically sustainable community include:

• A savvy understanding of the local economy, economic development capacity, and supporting infrastructure.

• Economic development policies/programs designed around comparative advantages in the local economy.

• Local leadership that is effective at stimulating cooperation among key players.

• Flexibility of vision to adapt to changing circumstances and to take advantage of unexpected opportunities.

• Diversification.

As the County nears build-out, it faces major challenges in the context of economic sustainability. It is difficult to reach consensus in defining what economic sustainability is and identifying opportunities that exist in a County where three-quarters or more of the base economy revolves around tourism and recreation. Other major factors contributing to this challenge include the fiscal viability of economic sustainability, limited land area for development, high land costs, lack of developed incentives, fragmented interjurisdictional efforts, and no formalized economic development organization or strategic plan.

The Local Economy

Tourism and recreation dominate the County’s economy. The local economy has transitioned from a dependence on mining in the late 1 800s to dependence on some of the Country’s best-known and premier recreation and winter resorts. The dominance of the ski industry initially created a seasonal economy dominated by tourism. However, recently skier visits have been growing slower and even declined after the 2000/2001 season. What started decades ago as a traditional seasonal ski economy is developing into a diverse year-round tourism-based economy.

The economic foundation and drivers in the County will continue to be dominated by recreation-based tourism, and associated economic growth related to construction and servicing for second homeowners. An inherent and critical interdependence exists between year-round visitors, second homeowners, and local economic issues. The limited commercial and industrial base in the County further emphasizes the importance of this interdependence.
In the future it will be important to continue to enhance tourism opportunities, retain visitors and protect and develop the recreation base. Enhancing the County as an attractive and functional place to visit through improving services, the transportation system, housing, and aesthetics is critical. However, an attempt to diversify the economic base in a manner that is compatible with being a resort-based community needs to be explored. Thus, the goals and policies/actions of this element are focused on both instituting and implementing measures to address economic sustainability through continued tourism and recreation growth, as well as diversification.

The major byproduct of tourism has been the real estate industry, both commercial and residential. Activities related to real estate development, rental, and leasing contributes significantly to the economy. Physically this is apparent through the high concentration of offices of real estate agents and brokers and residential property managers. Fiscally the presence of the real estate industry is evident by total housing sales in the incorporated and unincorporated areas of the County. Housing sales totaled $308,153,148 between January-June, 2001 alone (Source: Summit County Statistician).

Work Force and Labor Trends

While the tourism industry dominates the planning area economy, unemployment is atypical. Over 94 percent of the people who live in the County work in the County.

The majority of County jobs are in the services and wholesale and retail sectors. Together these accounted for almost 70 percent of the 1999 employment, while approximately 25 percent of all workers were employed in the construction, government, finance, insurance, and real estate industries.

In 2000, 64.9 percent of total County jobs were estimated to be tourism related.Markedly, the educational attainment of the County is one of the highest in the Country.

The County has shifted to a year-round economy driven by a combination of the tourism, construction, and real estate industries. During the past decade job growth has been outpacing population growth. Future projections show this trend continuing with larger numbers of commuters and migrants coming into the County to fill jobs. Factors fueling job growth has been the construction of second homes, real estates sales, and the strengthening of industries that support new home development.

Economic Trends

Skier visits have been increasing at only a modest rate per year, which represents a trend of flattening skier visit activity. However, sales tax revenue continues to experience strong growth trends. Decreased disparity between the biggest retail months of December and March and the rest of the year is becoming apparent.

Strengths, Weaknesses, Issues, and Opportunities

For economic development efforts to be effective, it is important the County focus on strategic planning and activities in areas where there is a competitive advantage and where the greatest opportunity lies. To measure or gauge the County’s economic sustainability, it is essential to further examine these opportunities. Furthermore, it is critical to concentrate on inventorying and assessing the built environment, monitoring the work force, fostering quality development, and analyzing strengths and weaknesses, opportunities, and threats.

To address economic sustainability efforts would require the County to build on its strengths, correct weaknesses, and protect against vulnerabilities and threats. The need for countywide guiding principles and a coalition to focus on short-term actions that support a long-term economic sustainability strategy is key.

The following embodies some of the major issues that should be further promoted and studied to capitalize on strengths and improve economic sustainability efforts throughout the County:

• Proximity to Denver.

• Supporting the development of telecommunications infrastructure alternatives to meet demand.

- Fiber optics, digital subscriber lines, fixed wireless, cable modem service, integrated services
digital network, satellite service, 3rd generation wireless, or conventional T1 service.

• Initiating relevant and innovative programs to create and sustain economic development efforts.

- Formalize a countywide economic development authority/corporation, with cooperation from all
major players (e.g., towns, resorts).

• Lifestyle, quality of life, and existing recreational opportunities and amenities.

• Analysis of land ownership patterns and zoning to accommodate for different economic opportunities that arise.

• Understanding the current role of national forest management and its impacts on the economy.

• The public role in marketing.

• Infrastructure and incentives to retain and recruit businesses.

- Telecommunications infrastructure.

- Business retention and expansion program.

• Identifying and recruiting target industries/niche opportunities, such as:

- Elder population/senior living services and facilities.

- Medical center, healthcare facilities, and social assistance.

- Wholesale sporting goods.

- Executive and corporate retail or satellite offices (e.g., Patagonia mail-order headquarters— formerly in Bozeman MT).

- Public Relation firms specializing in outdoor sports (e.g., Stanwood and Partners - Jackson Hole WY, Backbone Media - Aspen CO, Fuse Marketing - Burlington VT, Resort Support Network (RSN) – Summit County).

- Recreational goods manufactures and retailers (e.g., Osprey Packs – Cortez CO, Chaco Sandals – Paonia CO, Big Agnes Products - Steamboat Springs CO, Melanzana clothing gear – Leadville CO, Unity Snowboards - Dillon).

- Educational opportunities/institutions (e.g., Colorado Mountain College, Breckenridge Outdoor Education Center).

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