Vernon Fike, project superintendent for W W Framing, operates a lift Monday morning at Parkside Townhomes.//Photo by Todd Newcomer.

The echo of hammers and the beep of heavy equipment are certain to fill the air again this spring and summer. In spite of a sagging national economy and the war in Iraq, the Durango area is bracing for another large home building season. Additionally, numerous giant building projects are poised to infuse hundreds of millions of dollars into the local economy in coming years.

Durango’s population has been growing steadily since 1991, and consequently construction and building have become a crucial segment of the local economy. Currently, construction jobs account for 11 percent of jobs in La Plata County. They also pay an average salary of $30,000, making them one of the better paying occupations in the county. If current forecasts are correct, there will be plenty of these higher paying opportunities available in coming months and years.

Robert Lea, of Colorado Jaynes Construction, also is the vice-president of the Home Builders Association of Southwest Colorado. Though his company specializes in commercial construction, Lea said all local construction is continuing to show strength.

“The home-building business is still strong,” he said. “There’s still demand. As long as interest rates are down, people are going to be building houses.”

On the up and up

Greg Hoch, Durango City Planner, said his department has every indication that construction will continue to increase. Of the last 12 years, only three were bigger years in terms of building permits than 2002 with its 124 new units inside city limits. The 2003 building season is shaping up to match or exceed last year. In February alone, the city of Durango issued 22 building permits, primarily for the Mears House, 18 upscale townhomes that will replace the Durango Hostel.

Looking forward, Hoch said: “If you look at our 20-year history, it’s always buffeted by national and international economics. Is this war going to hurt us? I don’t know. I do think it’ll continue to be a fairly strong year.”

A similar picture is shaping up for construction outside city limits. Last year, a total of 1,190 building permits were issued, up slightly over 2001. Thus far, this year is on pace with last. Craig Springe, the county plans examiner, said, “Things have been fairly consistent for the last five years. I have no reason to believe that this year will be any different than past years.”

Brad Elder, general manager of Willow Brook Homes, agreed that local construction has been on a strong, upward trend. In particular, he pointed to an in-town boom that’s lasted more than a decade and grew after last summer’s fires.

“Building is really strong in town, but out of town it has softened a little,” Elder said. “I think it’s a whole host of drought- and fire-related issues, plus in-town living has always been more desirable.”

A new single-family home close to completion in the Hillcrest subdivision overlooks the La Plata Mountains./Photo by Todd Newcomer.

Too much success

Elder said that the flip side of this desirability has been a lack of available lots.

“There’s not a huge amount of in-town inventory,” he said. “The demand has exceeded supply in some categories, particularly homes under $200,000.”

Elder added, “The demand is huge for homes under $200,000. I could sell a thousand of them. But there’s just no dirt. There are no lots to do it.”

Hoch said that this has been a long-standing problem for Durango, saying“It’s always been the issue.” He said the answer to the problem lies with large, urban developments like those proposed for Grandview and River Trails Ranch. However, gaining public acceptance for hundreds of new units remains a difficulty.

“Everybody says ‘no’ to annexations, but there’s no way to grow without them,” Hoch said.

Elder said a large segment of the construction community is anxiously waiting for one of those projects to come on line. “I think just one of those projects could be enough to last into the foreseeable future – the next decade if not more,” he said.

In particular, Elder has hopes for the Southern Ute Indian Tribe’s proposal for up to 2,000 new units in Grandview. However, he said it will be a waiting game.

“I’m trying to figure out what to do for the next two years,” he said. “I’m scrambling trying to figure out how to meet my market niche.”

The big money

The next few years will be considerably more exciting for large capital construction projects. Several months ago, the La Plata County Economic Development Action Partnership (LEAD) commissioned a study to document the economic impact of proposed and recently approved large capital projects in La Plata County.

Bobby Lieb, LEAD director and Durango Area Chamber Resort Association director, said the impact is shaping up to be financially positive. “Over the next five years, $850 million in investment capital will come into the county,” he said. “The largest single amount of that, $160 million, is proposed for this year.”

The projects included in the five-year analysis were familiar ones: the Mercy Medical Center expansion, the Animas-La Plata project, expansions at Durango Mountain Resort and Tamarron, development of Grandview and River Trails Ranch, expansion of area schools per the approved bond issue and many others. The study predicts that these projects will stimulate the local economy by generating jobs and demand for goods and services and creating a multiplier effect as those dollars “ripple” through the community.

Boom or bust?

On the one hand, Lieb said the projects will be a boom of activity and funding. On the other, the cycle will not last forever. “It will have to rise and fall,” he said. “It is in many ways a one-time shot. We’ll have all this construction, and then it’ll taper off. Then there will either be new projects or it will go away.”

However, Lieb said that the one-time shot will be a significant one and likely will help all segments of Durango’s economy rebound from last summer’s hardship.

“The economic benefit will come in the form of new dollars,” Lieb said. “There will be 850 million new dollars that will be added to the county. This should easily offset what we’ve lost in tourism dollars.”

For his part, Lea, of the Home Builders Association, said he has no reason to believe that the boom will end in five years. “I don’t think it’s a boom-bust situation,” he said. “Durango has been growing steadily since 1991. As long as we have an influx of population, Durango will continue to grow.”