Since June, the Archuleta County Board of County Commissioners (BoCC) has awarded a total of $83,612 through its main street grant program, with that total divided among 24 local businesses.
In BoCC meetings, Finance Director Chad Eaton explained that the program was “created to help businesses during the construction” of U.S. 160 through downtown Pagosa Springs.
Businesses are able to apply for grants in amounts ranging from $500 to $5,000 with requirements that the businesses is located in the Pagosa Springs’ main street district and has 20 or fewer employees, has a physical businesses address and presence within the district, and has been in businesses for at least one year prior to submitting an application.
The BoCC originally earmarked $100,000 in its budget to go toward the program for 2025.
Discussion on the importance and potential funding amount for the program next year took place during a regular work session held by the BoCC on Tuesday, Nov. 18.
Commissioner Veronica Medina indicated that one of the businesses that had received a grant from the county had “sold and left after they received this money, which we can’t control.”
In a later interview, Medina indicated that two businesses that had received main street grants had sold afterward.
When asked about possible measures the county could take to prevent a similar situation going forward, Medina stated, “I have spoken to our finance director to see what we could do for next year.”
She noted that it would be something that the BoCC would need to agree on.
“But that is something I think we should do,” Medina added.
During the work session, Commissioner John Ranson mentioned he had discussions with a few business owners, “and had two fairly strong suggestions from several of them,” while also commenting on the county’s 2026 budget, noting it has been trimmed down.
Ranson then mentioned that participation in the county’s main street grant program has not been as strong as it could be due to some businesses not wanting to have certain information shared with the public.
Ranson also indicated that he would like the county to “keep that $100,000 next year in the budget for these folks, not because we can afford it … but it’s just a bad message right now to send them, that we’re cutting it back when they’re down 35, 40 percent.”
He added, “And I think we can afford it.”
Ranson stated that businesses in the main street district have not had a lot of help other than what the county has provided.
“I’d sure like to keep that,” he said.
Commissioner Warren Brown referred to County Attorney Cathleen Giovannini “to see if there were something that might make this more palatable for businesses to participate in this process.”
Brown noted that he can see the point of businesses not wanting certain information being made public, “but I also know that we have an obligation to make sure that taxpayers know where their money’s being spent.”
“It’s free money,” Medina commented.
Giovannini indicated she would research other ways the county could conduct its main street program.
Brown also commented on the suggestion of keeping $100,000 in the county’s main street grant program fund for 2026, noting that, as a former business owner, loans and in-kind services are great, “but, at the end of the day, what really matters is the money, and not having to leverage yourself to try to recover from a project that was not of your choosing, not of your involvement and probably not of your consent to go forward.”
Brown mentioned that the Region 9 Economic Development District’s low-cost loans are not being accessed, “and I don’t know if I can blame them” in choosing to take a debt when there is uncertainty within the business.
Brown indicated that he would like to keep the fund at $100,000 for 2026, “just because I know that there’s no other help coming. We’re it.”
Medina expressed the county has made cuts in other areas, suggesting that the main street grant program fund be budgeted at $50,000.
“We’ve cut on staff, we cut the [cost-of-living adjustment], we cut on merit increases, we said no to Road and Bridge for equipment and staff. We’ve said no to a lot of infrastructure. We’ve said no to county staff. We’ve done a lot there to bring it down,” Medina said. “I think we did the right thing for 2025 with $100,000 because it was an unknown.”
Medina explained that businesses now have a year of experience dealing with the road construction project and “hopefully it won’t be as bad because it sounds like the construction is maybe a little bit ahead of schedule.”
Medina also mentioned that as a business owner, “you forecast and look and are gonna know what’s ahead, and so I think keeping it at $50,000 is the right thing.”
She noted that she was supportive of the $100,000 budgeted for the fund in 2025, but noted that with the county cutting its budget in so many other areas, she would prefer the fund be budgeted for $50,000 for 2026, adding that she supports the businesses and is shopping downtown more than ever.
“That’s why I say the $50,000 — just because we have cut everywhere else,” she said.
During the interview, Medina expressed that having $50,000 budgeted for the program is appropriate, adding, “I still am happy that the county wants to participate and help in any way that we can.”
She added, “But even the finance director said that the $50,000 should be the right number based on where we were at the middle of the year and moving forward and how that other side of the road would be open where most of the businesses are.”
Medina also indicated that the grants have “probably definitely helped” businesses, but described it as a “Band-Aid” and not a long-term solution.
Medina also encouraged people to shop local and “show [local businesses] the support and love that I know this community can show.”
In a later interview, Brown, when asked about businesses receiving funds and then selling, expressed that the county “has gone to some pretty great lengths to try to ensure the businesses that apply for these funds meet specific guidelines,” but that unfortunately “there will always be people who take advantage.”
He mentioned that he would rather “err on the side of grace” when it comes to what may or may not be happening within a business.
“I think it’s wrong to not go forward with a good intended, and good purpose, plan,” Brown said, noting that it is “unfortunate that this has happened,” but that the funds have helped other businesses. “I know that these funds have significantly helped many of our businesses.”
Brown also spoke about businesses not wanting to share certain information when applying for the grants.
“And I so appreciate that perspective, but to me I think the conflict comes when spending taxpayer money,” he said. “We need to be transparent, and I want to make sure that we remain transparent.”
Brown also noted that he would be interested in seeing if there is something the county could do to “minimize” businesses exposure when applying for a grant.
“This is a well-intended effort,” Brown stated.
Brown also expressed that he feels $100,000 for the program for 2026 would be appropriate, noting that there are always “tough decisions” when looking at the county’s budget and trying to identify needs in the community.
He mentioned that businesses need to be able to provide documentation “so we can look our constituents in the eye and justify, yes, this is a valid cost as the application reads.”
Brown also indicated that there might be an even greater need next year and that $100,000 budgeted for the program would be appropriate.
“I think the need is still there,” he said, “And, honestly, the main street is the lifeblood of our community, financially speaking, and we have to protect that.”
In a later interview, Ranson explained that initial drafts for the 2026 budget showed a shortfall of approximately $1.5 million. After revising revenues by raising them slightly while still staying at a conservative projection of 20 to 30 percent below 2024 and 2025 totals, the county was able to start closing that shortfall.
Ranson explained that the biggest issue the county is facing is having to pay $440,000 more for its health insurance program in 2026 compared to 2025.
“We did cut some of our contributions that we’ve done in the past,” Ranson added, explaining that other smaller expenses between $5,000 and $30,000 were also cut.
Ranson also explained that the main street grant program fund was initially dropped to $50,000, but that he pushed back on that wanting to keep at $100,000 “just because it sends such a bad message to those business owners that are already hurting.”
Ranson then explained that the county cut its cost-of-living adjustment for employees, but is going to keep merit increases up to 4 percent based on manager decisions.
“Those are hard,” he said, noting it is “difficult when it starts impacting lives.”
Ranson also spoke about business in the main street district being uncomfortable with private information being shared in the grant application process.
“Once you’re dealing with government and people’s money, it has to be transparent,” he said, suggesting that the county could come up with a way to make it more appealing for business to apply for the funds.
When asked about business receiving funds and then selling, Ranson indicated that he would be open adding potential measures about if a business sells within a certain time period, then the funds would need to be paid back.
“Something along those lines,” he said.
Ranson also noted the BoCC will be holding a work session on Thursday, Dec. 4, at 8:30 a.m. to continue discussions on its budget, which is scheduled to be approved at the BoCC’s regular meeting on Tuesday, Dec. 9, at 1:30 p.m. in the commissioners room at 398 Lewis St.
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