Longtime Bayfield resident Ed Morlan has been the executive director of the Region 9 Economic Development District for 27 years. He is retiring at the end of September.
The district is based in Durango and promotes economic development in the five counties in Southwest Colorado - La Plata, Archuleta, Montezuma, Dolores, and San Juan. Morlan started with the district in 1989 as it was re-formed from previous mis-management that left the predecessor organization $30,000 in debt to a federal grant agency. "When we started until that debt got paid, none of the governments in the region could apply for that grant," he said. "We cleared that up. In looking at my retirement, I feel fortunate that I can look back and say I did something, something right along the way."
Morlan also served on the Bayfield Town Board for many years, leaving office in April this year; and before that for many years on the Bayfield Planning Commission. Morlan's office is full of awards and mementos from his tenure. One of those is a red velvet cape with a gold satin lining made by colleague Shirley Jones to mark his 25th year in the job. "We gave that to Ed for being a super-hero," she said.
There's a framed certificate from Gov. John Hickenlooper who proclaimed July 28 this year to be Ed Morlan Day. Representatives from the state just showed up with it on that day, Morlan said. With his impending departure, there's also a sign that says "One foot out the door Ed."
Region 9 offers loans to startup businesses or businesses that want to expand, based on the number of jobs that could be created or preserved. There's a priority on "direct based economic activity," businesses that create a product or service that they sell outside the area, bringing new money into the local economy.
Region 9 also works with the economic development groups in each county, including helping get grants and providing technical support for the smaller groups that couldn't otherwise afford any paid staff, such as Silverton or Dove Creek. Region 9 is the area administrator for state Enterprise Zone tax credits for businesses in areas that qualify as economically distressed. Region 9 also maintains all sorts of demographic, employment and economic development data for each of the five counties and helps each county create economic development action plans, Morlan said.
Region 9 helped Bayfield several years ago to do a market analysis aimed at attracting a national chain grocery store, he said. It showed that the national chains weren't looking at the "catchment area," that Bayfield wanted them to consider, such as Forest Lakes and Vallecito, in determining whether there was enough potential customer base for a store in Bayfield.
The district can help determine if infrastructure exists for a business to locate in a place. Morlan cited when Walker Hardware wanted to move from its old store in downtown Ignacio to the south edge of town. They ran into Colorado Department of Transportation requirements for improvements on Highway 172. Region 9 helped get a grant to pay for that. "CDOT is pretty notorious for coming in after the fact" after some development has already happened and increased traffic, when another business comes in with a relatively small increase in traffic and hits CDOT's threshhold for expensive highway improvements, and the entire cost falls on that business, Morlan said.
Asked about the effects of local regulations on business creation, Morlan cited complaints about how long it takes and the cost to get through the approval process, especially with La Plata County. "The county land use process has problems," he said. Applicants are advised they need to hire a consultant to get through the process, because it's so complicated.
But Morlan also cited a comment from former longtime Durango City Manager Bob Ledger that "'All these people complain about our regulations, but Durango is repeatedly voted the best place to live'... A lot of regulations are what makes the area special. A lot of times, businesses like regulations. They don't want to put all their capital into a facility and have a junk yard go in next door."
He noted the impact on current residents, businesses, and taxpayers from the lack of regulations on mining 100 years ago.
As for changes he's seen in the area economies since 1989, Morlan cited surviving a couple of recessions, oil and gas booms and busts, and the area's population growth, which in turn provides a customer base for businesses. "We have a lot more technical companies than 25 years ago," he added, also a lot more banks.
"One of our famous deals (for a business start-up) is Mercury Payment. Marc Katz owned the Durango Computer Classroom. He came in with this idea for credit card payment processing." Mercury became one of the county's top employers. "The recession was a big deal. We took a big hit on our loan fund" with businesses that failed then.
"Another thing that's changed, one of our first grants was to help promote the internet. It was new then. We were so proud. We did a web site. The technical guy figured out a way to hear a train whistle blow. That was a big deal then, to get sound," Morlan said. Real estate costs have become an issue, both for businesses and for housing costs, he said. Businesses can't get employees because they can't afford to live here. "That wasn't so much an issue when I came here, but now it's a big issue," he said.
Morlan and wife Jackie moved to Bayfield in 1979 after renting in Durango for a couple of years. Before Region 9, he worked for the Southern Ute Indian Tribe and also the Bank of Ignacio. Their two daughters went through Bayfield schools.
Morlan hopes there will be more time for traveling. "It's been a fun ride," he said of Region 9. "It was a good job for me. I fit the niche with my skills and interests."
But he's not riding off into the sunset. Morlan said he will continue doing some consulting with Region 9 and audit their loan files. The main thing (but not full-time, he says) will be a contract he has with First Southwest Bank to help them launch a venture capital fund. The state has a venture capital fund. Part of that is supposed to be invested in the rural parts of the state.
"They've fallen short on that. The bank would apply to become the fund manager," he said. So instead of dealing with five counties, he could be dealing with 47 rural counties.
Information about Region 9 is at 247-9621 and at www.scan.org.
