Taos County: looking at change

New Mexico Business Journal, June, 1994 by Dennis Wall

Tourism is still the name of the game in picturesque Taos County with its abundant natural beauty, skiing, outdoor activities and thriving art market.

Thousands come from around the world to experience what can only be described as the Taos atmosphere while a lot of newcomers are choosing the county as their primary or vacation home.

The county's magnetism has been a mixed blessing, attracting tourism but offering too few good jobs.

Many, however, has benefitted from the artistic boom times, but others, especially long-time residents, haven't fared so well in what is largely the service-based economy.

Taos Mayor Fred Peralta says his town, his county, are facing challenges in the future.

"Overall the economy of Taos is good, especially in the tourism and building trades," he says. "But you have to be realistic.

"There can only be so many business owners. A lot of people are moving here who don't need to work, so they're not bringing any jobs with them, even though they do spend money and that creates some jobs."

"But service jobs are not high-paying," he says. "You now have a situation here where two or three family members have to work just to support their families.

"We'd prefer to diversify."

Unemployment in Taos County, for instance, stood at 16.1 percent about two years ago. Although that rate has dropped somewhat, it's still around 14.5 percent.

Peralta agrees that unemployment is still unacceptably high even though organizations in the county are working to bring about change.

The good news is that tourists with bulging wallets continue flocking in to ski, fish, hunt, camp, ride their mountain bikes, appreciate the region's art and history, and generally absorb the clean air and rugged outdoor magic.

Tourism dollars create a relatively strong municipal tax base for infrastructure development. A new hospital, funded by a bond issuance, will be built in Taos, along with a youth center, animal shelter and other improvements to the quaint town's amenities.

Efforts are underway to create diverse jobs and opportunities not totally tied to tourism.

When Santa Fe was named by Conde Nast Travel magazine as the world's top tourism destination, the town of Taos was also a major beneficiary, says Patty Taylor, an official with the Taos Chamber of Commerce.

The town's visitor center, which opened two years ago, has vastly improved tourism service, fielding close to 3,800 calls a month in its first half year of operation and helping with visitor orientation and education.

Gross receipts reflect the rising tide of tourism. The numbers have increased over the past few years at an annual rate approaching nine percent. More than a million people visit Taos in an average year.

Despite high unemployment and a low-paying service economy, the county's population increased by four percent in 1992 alone. Ninety-three residential building permits were issued that year, up from 66 the year before.

The newcomers' relief from big city ills has been the bane of lower-income Taos residents. Property tax valuations in the county rose 13.9 percent from 1991 to 1992, compared to a statewide average of 3.9 percent.

In 1980, for instance, the average Taos County home sold for $36,700. An average house today costs $103,400 or more, close to a 300 percent increase.

Rentals in town have also risen dramatically, with residential property appreciating at around 31 percent each year.

Jeff Bergerson, co-owner with his wife, Judy, of Pizza Emergency (a Taos pizza shop), has watched the change.

"We're seeing trailers renting for $700 a month," he says. "You see three guys living in them because they can't afford to live anywhere else in town."

As the town moves to the future, Mayor Peralta says he wants to see new businesses created.

"We want businesses that are fairly small, that won't destroy the fabric of the town," Peralta stresses.

Business growth for the time being in Taos has slowed to a trickle, mainly the result of a moratorium on water use and wastewater hookups. Prospective firms must convince the town they can get by on residential levels of water and sewage use, either due to the operation's inherent needs or through innovative conservation practices.

The moratorium will likely be lifted in mid-1995 when a new treatment plant goes into operation, but conservation in this arid community is here to stay.

Growth in the county surrounding Taos has also outstripped infrastructure capacity, and the county, too, is considering a short-term zoning package to maintain agricultural land.

The 72-trail Taos Ski Valley has held steady in a three-year trend, with 1992's ledger of 315,000 skier days reflecting its leadership role among the Enchanted Circle's three ski resorts, which include Red River and Angel Fire.

Taos Ski Valley employs 650 people during its peak season, and averages about 100 employees year-round, making it the largest private employer in the county.

The town's 80 art galleries are also high on the list of attractions. Many galleries have added less costly jewelry and ceramics to their inventory to accommodate the thriftier spending habits of clientele.