For Silver City, a period of adjustment: growth is great, but let's not get carried away

New Mexico Business Journal, Nov, 1996 by Carla DeMarco

Silver City's population grew 7 percent from 10,700 in 1990 to 12,000 in 1994. Current annual growth is estimated at 2 percent while Grant County, at 28,740, is 3 percent.

Business is flourishing. The signs are ample. Gross receipts in fiscal 1995, for example, were $5.5 million. New small business, major investment and renovations are everywhere in evidence. Downtown storefronts and the new College Plaza are full. The Golden Corral restaurant celebrated its grand opening in August. Three hotels revamped or expanded and word is circulating that an Econolodge, Best Western and Comfort Inn are coming.

Downtown saw the reopening of the historic Gila Theater. The sidewalk restoration is complete, and Main Street Project is pushing to replace 38 blocks of street lighting. Funding was approved for a visitors' center to house the Silver City/Grant County Chamber of Commerce.

Western New Mexico University is building a $10 million student center and library complex. Gila Regional Medical Center opened a rehabilitation complex. A comprehensive plan for services and land development goes before the town council in October.

This Victorian mining town, flanked on two sides by the Gila National Forest, sits one hour from the nearest interstate and three hours from the nearest international airport. Had it not been discovered four years ago in "The One Hundred Best Small Towns in America," it might by now have been facing less positive problems. As citizens voice concerns that the small-town atmosphere they love may be sullied by big city dilemmas, leaders vow to maintain existing quality of life. "Silver City is creative and its leadership is visionary," says Cheryl Pink, economic development specialist for SIGRED (Silver City-Grant County Economic Development Corporation). "It is equal to meeting the challenge of growth."

SIGRED, an entity created to safeguard and strengthen Silver's economic viability, is looking at acquiring industrial sites that will entice manufacturers - mostly family-owned with an employee base of 10-20 seeking quality of life - and developing a plan to use city resources as business incentives.

SIGRED also assists entrepreneurs and existing businesses through the Small Business Development Corporation and the Industry Network Corporation and by hosting an annual NAFTA Institute. "There is a tremendous amount of energy and interest in caring for existing business and helping them leverage the best possible options," says Pink. "This is a good example of how a rural community builds on its own opportunities."

A rural community that's still adjusting to expansion. "Our growth has taxed our infrastructure and overcrowded our streets," city manager Tom Bates explains. "That's frightening to some because it's so lovely here. We never had gangs, water issues or traffic jams before. I think many fear we're in danger of becoming another Santa Fe."

But towns either grow or die, Bates maintains. "We need people coming in; we need economic growth to create jobs and keep our young people here."

Unemployment in Grant County was slightly higher than the state average at 7.9 percent as of July. Major employers are Phelps Dodge/Chino Mines, Western New Mexico University, Gila Regional Medical Center, the Silver City School System and Fort Bayard Hospital.

"I see a lot of people come, look for work and have to leave," says Joan Atencio, employer relations supervisor with the New Mexico Department of Labor. "Some people who can't find jobs go into small business or start a home business."

"People take enormous tradeoffs to come here," says Pink. "We have a large number of overqualified workers. But from a marketing standpoint, that's an asset."

Silver's future will revolve around its greatest asset: diversity. "We don't have the biggest or the best in any area but we have something for everyone," says Linda Miller, the Chamber of Commerce director. The town will continue to capitalize on its rich cultural mix, varied topography, mild climate, arts, shopping and recreational attractions. These enticements draw tourists, families, retirees and professionals, Miller explains. Diversification has changed Silver's economic picture from a one-trick-pony (mining) before 1981 to a current earned income spread more evenly among its sectors: 21 percent mining and construction, 27 percent transfers, 16 percent government and 17 percent retail and service.

As a destination town, lack of close proximity to an interstate doesn't dim Silver's vision. "I think what makes us attractive as a community is not threatened by the fact that we're 60 miles from an interstate," says Pink. "We just won't qualify for companies that need immediate transportation access. There's enough vision here to analyze the opportunities we have and explore a very complex market."

Growth has shrunk the housing market. Many newcomers, failing to find moderate housing, purchase homes in one of the six newest subdivisions where low-end houses list at $88,000 - $105,000. "There will always be low-cost housing because people will move up," says Steve May, former mayor and owner of the Red Barn Complex. But seekers say they can't snare a house because "fixer uppers" are being renovated and resold. "As soon as a $30,000 to $50,000 house comes on the market, it sells," says Marilyn Berry, Old West Properties broker and Realtors Association vice president pro tem.