The other Las Vegas

New Mexico Business Journal, Sept, 1995

Is history about to repeat itself in northern New Mexico?

During the railroad era of the late 19th century, Las Vegas shone as a thriving commercial capital the equal of Denver, Tucson, and El Paso. For decades New Mexico's most populous and prosperous city, Las Vegas ("the meadows") has experienced two booms in its history. Prior to the coming of the railroad in the 1870's, "Nuestra Senora de Los Dolores de Las Vegas," as it was originally named in 1835, served as a major staging area and Mexican port of entry on the Santa Fe Trail.

Now, after decades of economic stagnation, many people are wondering if Las Vegas, the capital of San Miguel County, is on the brink of a third boomtown era. The city's new slogan, "Enchanting places, friendly faces, and the rest is history," sums up the way the town sees itself. Reasonable cost of living, a friendly, hospitable community and breathtaking natural environment are joining with regional and national trends to bring tourism, new residents, and new businesses to Las Vegas, causing residents to examine their future as never before. Having witnessed the effects of what is perceived as exploitive, bottom-line driven growth in neighboring communities of Taos and Santa Fe, Las Vegans share a single determination. Their rallying cry is: "We don't want to become another Santa Fe!"

When evaluating Las Vegas' prospects, consider these observations by people who live and work in Las Vegas:

* The average price of housing in Las Vegas is $80,000 - half that of Santa Fe, according to Dave Dillard, executive director of the Las Vegas-San Miguel County Chamber of Commerce.

* Larry Brow, a broker with Century 21, Rocky Mountain Agency reports a 200% increase in commercial property activity over two years ago.

* Brow also says that five acre parcels in San Miguel County that sold for $20,000 two years ago now go for $30,000.

* Carmen Fernandez, for 35 years the proprietor of the popular and recently expanded Spic & Span Bakery and Cafe, says she now employs a staff of 77, compared to 35 two years ago.

* Harold Garcia, the city's coordinator of economic development, reports unemployment at 6 percent, halved down from 12 percent two years ago.

* Malcolm Neal, owner of the Kiva Theater, a 1912 movie palace on the National Register, says attendance is up 100 percent every year since 1990.

* Furr's Supermarket is expanding by 3,000 square feet.

* Highlands University anticipates its enrollment will grow from a current 3000 students to 5000 within five years.

* Lavinia Flores-Fenzi, owner of the Inn on the Santa Fe Trail, says in five years her 42-room motel has gone from 40 percent occupancy to 70 percent year-round occupancy.

* Jim Franken, vice-president of Franken Construction, doing business in Las Vegas since 1947, employed 30 people five years ago; now he has 65.

Historic Preservation Leads the Way

A stunning natural setting, urban flight, out-of-reach real estate prices in its neighbor one hour to the south (Santa Fe), and a homey small-town tradition all add up to make Las Vegas an attractive place, one key factor paves the way for the town's surge of vitality.

A decade ago, a group of long-time Las Vegans dedicated themselves to using historic preservation as the catalyst for economic development. With 918 buildings on the National Historic Register, it seemed the town's greatest resource might be the place to begin. The results of their efforts became visible five years ago. The revitalization of Old Town and the many retail businesses moving into the newly restored buildings along Bridge Street and the Plaza continue to drive the "discovery" of Las Vegas as an appealing place to live and do business.

When Wid and Katherine Slick moved to Las Vegas in 1980, the Old Town area surrounding the Plaza was mostly boarded up and abandoned. The unique 19th century structures had been saved because no one could even afford to tear them down. Like so many who discover Las Vegas while on vacation, the Slicks had been backpacking in the area. Wanting a smaller place to raise their son, they decided to move from Dallas to take on the renovation of the Plaza Hotel. The grand opening of the Victorian Plaza in March, 1983 anchored the subsequent restoration of the ares.

"It's taken about ten years," says Katherine Slick. "In '82, three-fourths of the buildings were empty - now only a quarter are." Prior to their arrival, groundwork had been set in place by the Main Street program, headed by Elmo Baca, which had already completed a survey of Las Vegas' historic properties and gotten them listed on the National Historic Register.

The next step came with the formation of La Plaza Vieja Partnership, a locally owned economic partnership that through an Urban Development Action Grant raised the money needed to rehabilitate 15 buildings. The city then came on board with sidewalk and drainage repairs and vintage street lights.

"We've incubated seven businesses in our buildings, giving them rock bottom rentals," says John Harrison, one of the five original general partners and now general manager for Plaza Vieja. "Somehow, we all survived and are in the best financial condition we've ever been in. We're paying the bills, we're almost all rented and our expenses are under control. We're getting discovered."