La Posta Road is a logical area for new industrial and residential growth, but it is unlikely to be a hot spot for construction anytime soon.
Infrastructure needs, the labor market within the construction industry and the permitting process all present challenges for business.
A water main is under construction along La Posta Road to the Animas Air Park, and it could spur a few more businesses to build, said Greg Hoch, director of community development for the city.
Despite the water and a 2014 intergovernmental agreement identifying the La Posta Road area as a place for new businesses and housing, he expects growth to be slow.
Although the city water main is expected to be finished this fall, there is no timeline to build centralized sewer lines to the South Durango Sanitation District.
The district has the capacity to serve the area, but property owners must finance the infrastructure, which includes all the sewer main pipelines, said Bud Smith, the district’s attorney.
“The heavy lifting is proving to be possibly heavier than we can lift,” said Bob Wolff, a member of the La Posta Road Area Property Owners Association.
The original estimate for sewer infrastructure was $40 million, and if the mill levy on La Posta Road property owners was doubled, it would raise only about $5 million, he said.
Sewer presents a multifaceted problem because without centralized sewer, the area cannot be developed at a high density. But without high density, it is tough to pay for the infrastructure.
For some big development projects, the decision to form a metro district rests with a few owners. But it is tougher for a big group of property owners, like those along La Posta Road, to come to a decision to form a district and tax themselves to pay for infrastructure, Wolff said.
Market forces
Construction projects across La Plata County are moving slower than they would be if builders could hire enough workers, said Lisa Laughlin, executive officer with the Home Builders Association of Southwest Colorado.
Many people exited the industry in 2008, choosing to find other jobs or leave town, she said.
It is a trend that has been observed nationwide, and rebuilding the labor pool is going to take time, Laughlin said.
At the same time, there is demand for more commercial space in Durango.
For example, Harmony Freenotes, a manufacturer of large musical instruments, faced an extensive search before moving into a new building in Bodo Industrial Park in June, said Donna Codd, the CEO of the company.
“We literally looked at every single space that was available,” she said earlier this summer.
Permitting in action
Only three businesses have completed the planning process since 2014, when the city and county finalized its intergovernmental agreement that guides development along the La Posta Road, said Damian Peduto, community development director.
Two companies have completed a land-use map-amendment process, and one company, Canyon Construction, has received final approval for building a project, he said.
Recla Metals, a recycling and retail business, found the process duplicative. The county asked for two paragraphs, while the city asked for 20 pages, said Greg Fulks, a co-owner of the company.
“There is very little cohesion between city and county,” he said.
Peduto admitted the process can be tedious.
“I could see where the confusion and concern and complaint is coming from,” he said.
In August, the Joint Planning Commission denied Recla Metals’ request for a land-use designation change that would allow the company to build on the site.
The board supported the company in character, merit and purpose, Fulks said. But ultimately, board members sided with residential neighbors, who opposed the project.
Fulks believes his company was misunderstood as a salvage yard, and that’s why it faced opposition. His company accepts metals, but it also does a substantial amount of retail sales in metal products.
Now the company plans to appeal the land-use decision to La Plata County commissioners, but Fulks doesn’t expect the atmosphere of the area to change soon.
“Stagnation appears to be the status quo,” he said.
mshinn@durangoherald.com
