Issues and Trends, our monthly newsletter about Western Colorado Real Estate.

Battlement Mesa, Parachute, Colorado see opposite things in '09

By Mike McKibbin, Citizen Telegram, Rifle, CO 384-9170,MMCKIBBIN@CITIZENTELEGRAM.COM,

This is the first in a three-part series.  BATTLEMENT MESA, COLO.- While Battlement Mesa doesn't expect to see many land sales this year, the nearby Town of Parachute is welcoming new restaurants and other businesses, according to officials at a Thursday, March 19 economic forum, hosted by Colorado Heritage Real Estate Co.

Eric Schmela, director of development for the Battlement Mesa Co., said while no land sales to third party developers are expected due to economic factors, the company is working with Garfield County and others to "stimulate different housing sectors."

"We're also looking at commercial, retail, medical and the school district," he said.

Schmela said the slowdown in natural gas development in Western Garfield County means fewer tax dollars for public projects.

"I think they're missed by everyone, in the big picture," he added.

Battlement Mesa Co. is also working with the county and Parachute to improve the bridge linking the two communities.

"We think we can offer a better lifestyle" to potential new residents with such improvements, Schmela said.

While Schmela said the company was unlikely to drop rental rates to help attract more renters, a referral discount program will be offered.  If a resident recommends someone who rents a company-owned housing unit, they will get a short-term rent reduction, he explained.

School District 16 Superintendent Ken Haptonstall said the district recently had to return $45,000 to the state due to changes in school funding allocations, and were told to expect to receive $145,000 less next year.

"We're reluctant to plan for anything but zero growth next year, compared to the average five or six percent growth we've had," he said.

Haptonstall said the federal stimulus money for education is directed mostly to special education needs, and he noted that "once we hire a teacher for two years, we're expected to continue to pay them."

District 16 is working with other districts in the county to make sure all make the most efficient use of their money, Haptonstall said.

The district recently decided to seek a state energy impact grant to help build employee housing, and the Battlement Mesa Co. has taked to the district about a possible land donation, Haptonstall noted.

"I know we're going to see ups and downs in the future," he said. "I just want to make sure we make good financial decisions for next year. I'm sure two years out, thing could be a little dicey."

Parachute Administrator Bob Knight said the town's January sales tax revenue declined by 35 percent from last January.

"But you have to remember 2008 was a banner year," he said. "We were $500,000 over budget in revenue but our budget plan has been virtually the same since 2007. We feel we can adjust and maintain services and staff."

Knight noted Parachute has a new Domino's Pizza, Microtel still plans to build a hotel, as does a 24-hour restaurant with a hotel. The Old Chicago Beef mobile restaurant that has been in Rifle for several years will relocate to Parachute and hope to build a sitdown restaurant, he added.

"This is a time of opportunity for us and we're going to use it," he said. "We've spent the money and manpower to do things like put in a new park and we plan a spring cleanup."

A model of town hall is to be finished by the end of the month, then a paved parking lot and landscaping will be done.  Along with a nearby Parachute Branch Library remodel project, the area will be a "civic plaza," Knight said.

"We may have some hard choices in 2010, but we'll deal with it," he stated.  "We've been here a long time, since 1908, and we're good folks. We'll stand on our own as we always have."