Economic Sustainability

“Economic growth is never an accident.” -- Gary Sherrer

Vision: Achieve and maintain an adaptive, resilient, vital economy providing opportunities and stability for Summit County residents.

·       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.

In the future it will be important to continue to protect the tourism and recreation base.  Enhancing the County as an attractive and functional place to visit through improving services, the transportation system, environment and aesthetics is critical.  However, an attempt to diversity the economic base in a manner that is compatible with being a resort-based community needs to be explored.  Thus, the goals, policies/actions of this element are focused on both instituting and implementing measures to address economic sustainability through diversification as well as continued tourism and recreation growth. 

Nevertheless, all the other elements of the Countywide Comprehensive Plan when combined should address the essential components to economic sustainability.

Background, Existing Conditions, and Economic Base

Tourism and recreation dominate the County’s economy.  The local economy has transitioned from a dependence on mining in the late 1800s 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 much 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 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.

Work Force and Labor Trends

While the tourism industry dominates the planning area economy, unemployment is atypical.  Over 94% of the people who live in Summit 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% of the 1999 employment while approximately 25% of all workers were employed in the construction, government, finance, insurance, and real estate industries. 

Source: Colorado Demography Section, Department of Local Affairs, June 2001.

In 2000, 64.9% of total County jobs were estimated to be tourism related. 

Source: Colorado Demography Section, Department of Local Affairs.

Markedly, the educational attainment of the County is one of the highest in the Country.

Source: U.S. Census Bureau 2000.

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.

Source: Summit County Planning Department.

  ¹ Adjusted to account for inflation using a constant in 1982-84 dollars.  Data includes incorporated areas. Source: Summit County Statistician, 2001.

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, 3^rd generation wireless or conventional T1 service.

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

-     Formalized 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 - 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).

Goals, Policies/Actions

Goal A.     Sustain and create opportunities conducive to growth in tourism and recreation.

Policy/Action 1.    Promote tourism and recreation as a major industry.

Policy/Action 2.   Continue to develop year-round, multifaceted tourism opportunities consistent with community adopted land use patters and overall community character.

2.1       Encourage and support the use of a wide-range of community and resort facilities that make up the tourism industry infrastructure.

2.2         Continue to make the County attractive and convenient for visitors through enhancements to appropriate services and infrastructure (e.g., aesthetics and pedestrian facilities).

Policy/Action 3.   Amend the Land Use and Development Code to combine the Code’s fiscal impact requirements with the requirements for major development projects.

3.1     Refine the definition of major development projects in order to implement fiscal impact analyses for large projects in urban areas.

3.1   Evaluate land use needs, availability and patterns for industrial and commercial uses.

3.2     Identify, seek, and recruit target industries/niche opportunities.

• Exploring the feasibility of providing land acquisition and assistance for business retention and expansion.
             
• Developing and providing incentives for businesses to locate within appropriate areas, including infrastructure investment.
• Developing a targeted business approach to attracting investment.

• Maintaining adequate job base and wages to serve County residents.
             
• Explore programs and opportunities with the Colorado Mountain College (CMC) to serve local businesses.

Policy/Action 5.   The County shall continue to support the efforts of the Economic Linkages Project sponsored by the Northwest Colorado Council of Government set forth in Building Bridges to identify linkages between major land use decisions, the local economy and fiscal impacts.

5.1Once a better understanding of these economic linkages is understood and quantified, revisions to the plan should be undertaken to insure that infrastructure and land use are adequately planned for to accommodate anticipated development.

Policy/Action 6.   The County should be proactive in promoting a philosophy and programs that purport sharing sales tax revenue between all jurisdictions/towns.

Commercial & Retail

Policy/Action 7.    Promote infill and redevelopment to accommodate new business needs.

Business Attraction/Senior Population

Policy/Action 8.     Develop the services and businesses that will benefit the growing senior population and positively impact the County.

Policy/Action 9.     The County should partner, where appropriate, to strengthen local healthcare services or establish a regional medical center/facility.

Sustainability Measures

Programs and procedures are needed to initiate activities to address economic sustainability.  Ideally this would be accomplished through an economic development committee/corporation.  It should be the intent of this type of organization to identify and establish measurable economic sustainability targets through a countywide economic strategy/plan.  In addition to establishing targets this group could set priorities to guide programs.  This could be accomplished through establishing goals and defining benchmarks to measure progress in an array of areas deemed pertinent to economic sustainability.   

Sources: U.S. Census Bureau 2000; Colorado Department of Local Affairs.

Source: Colorado Demography Section, Department of Local Affairs.

Source: Colorado Demography Section, Department of Local Affairs.

Sources: Summit County Planning Department, USFS.

¹Adjusted to account for inflation using a constant in 1982-84$.
Sources: Colorado Department of Revenue, Colorado Department of Local Affairs, Planning Department.

Source: U.S. Census Bureau.

Implementation Strategies