Thanks, in part, to Santa Fe, Espanola is becoming the place to be

New Mexico Business Journal, May, 1995 by Joy Waldron

Espanola lost its commercial edge after the two World Wars, when domestic wool markets gave way to Australian competition and the railroads yielded to trucking. But the 1990s are a time of great change for the town, which has been climbing back from a sleepy village into a bustling, up-and-coming center.

"Espanola is poised for economic takeoff and growth," says Darien Cabral, director of the Small Business Development Center (SBDC) based at Northern New Mexico Community College. "We have a new industrial park going in, new companies moving here, established businesses enlarging and renovating, a new plaza."

Espanola's revitalization is a surprise to some people, he says. "We used to be considered a waystation to get gas and a hamburger between Santa Fe and Taos. But we were once the market hub of this whole region. There was a lot of capital flight to Santa Fe. But that's been shifting, because Santa Fe's gotten too expensive for many people, including businesses."

Cabral's SBDC office, one of 18 centers in the state funded by the federal Small Business Administration and the New Mexico Legislature, administers flow-through monies to assist and encourage local businesses.

"We help local people develop economically," he says. "The state brings in companies from the outside, but SBDC works for local grass roots development. We've established the New Mexico Community Development Loan Fund to award nontraditional loans to clients," he adds. "SBDC played a major role in helping clients get off the ground. It's a last-resort lender for low-income clients only. So far there's been $800,000 loaned and not a penny lost."

Nambe Mills Arrives

Cabral cites recent, specific changes in Espanola that point to a burgeoning economy. "We'll have a good industrial park on the Chama side of town," he says, referring to the 40-acre Johnny A. Roybal Industrial Park, "where the Bartholomew Sanchez Land Grant donated land to the city eight years ago. Nothing was happening, and now Nambe Mills is moving in there, and other businesses are preparing to follow suit."

Nambe Mills, a manufacturer of multi-metal dinnerware and decorative pieces, had been located in Santa Fe but the company announced it was moving out of the state capital to relocate in Espanola. "They're expanding and will employ more than 100 people, so ifs going to give us another shot in the arm," he says. "Those new jobs can be leveraged for Espanola to get federal grant money to develop the park."

Los Alamos National Laboratory (LANL) has provided income to Espanola residents for 50 years, and the Lab's recent downsizing provoked fear in many locals. "Our economy has been largely based on the Lab," Cabral admits, "but we're diversifying in every way we can. And the Lab is under tremendous pressure to create technology transfer. Part of that is in just-in-time contracting, a Japanese concept. Instead of warehousing materials, you get the contractors to invest in capital expenditure for inventory and warehousing. So a lot of companies can benefit by close proximity to the Lab. We're a prime candidate for a commercial park."

Bankers and realtors agree with Cabral's optimism for the town.

1994: A Very Good Year

"There are a lot of exciting things happening to change the face of Espanola," says Jerry Miller, president of Espanola's Sunwest Bank. "1994 was a very good year for the Valley. We've been pretty stable, not as many peaks and valleys as other places have. We provide a background living area for people who work in Santa Fe and Los Alamos. We don't have the ups and downs they do because our economy is tied to a paycheck. There's a lot of resiliency here. We have a tremendous amount of people who make or supplement their living by art: watercolors, painting, sculpture, pottery and weaving."

Cabral agrees with Miller on the economic potential of artisans for the region, and has instigated a database that would create easy access to artisans' wares for buyers.

Miller points to the new plaza and downtown renovation as positive signs. "Our Mainstreet Project is working to present a better image of the town. There's a drive right now to adopt the traffic medians. We've built a new plaza with a lot of potential for more attractions. There'll be a new courthouse annex downtown."

The Mainstreet Project, administered by Director Steve Justrich, is a state/federal grant for community development. The mission is downtown revitalization, and Justrich says the community will look prettier and be stronger economically.

"We have a bunch of projects going," he says, "including a streetscape design to make it more pleasant. We're concentrating on Onate Street for Phase I. Our new plaza provides a local orientation to businesses and people. We've had four new businesses open on Onate in the last 12 months: Arriba Artisans, Woody's Furniture, the Side Pocket Billiard Hall, and Khalsa Acupuncture."

Growth Is Taking Off

Justrich is hoping to consolidate the Rio Arriba County offices into one location on the north side of Onate. His group's architect delivered a schematic design and Justrich hopes the New Mexico Legislature will vote to fund the project.