The Pagosa Springs Community Development Corporation (PSCDC) heard from Laura Lewis Marchino, the executive director of the Region 9 Economic Development District of Southwest Colorado, during its July 9 meeting, with Lewis Marchino informing the board that Archuleta County will be getting an additional census tract in 2026 that will not be in the enterprise zone.
Lewis Marchino explained that Region 9 has recently had 22 enterprise zone inquiries “and we will be doing a redistricting of enterprise zone boundaries starting in January [2026],” noting those inquiries may increase, “because Archuleta [County] is getting an additional census tract that’s not going to be in the enterprise zone.”
According to the Colorado Office of Economic Development and International Trade, an enterprise zone is an economically distressed area of the state that is designated by the Economic Development Commission.
According to a report from Region 9, to qualify as an enterprise zone, an area must meet at least one of the following criteria:
• An unemployment rate at least 25 percent above the state average rate for the most recent period of 12 consecutive months.
• A population growth rate less than 25 percent of the state average for the most recent five-year period.
• A per capita income less than 75 percent of the state average.
The report also notes that Senate Bill 24-190 allows an area that is both rural and a Tier One Coal Transition Community to automatically qualify as an enterprise zone.
According to the report, Archuleta County has five census tracts and 14 bloc groups, of which 10 are eligible for enterprise zone certification.
PSCDC Board President Sherry Waner asked if there was any community input process that went into redrawing the enterprise zone boundaries, or if the state just decided to do so.
“That’s what happens,” Lewis Marchino replied, explaining that enterprise zones are based on census data and that the state redraws the map every 10 years.
She added that criteria for being an enterprise zone is outlined in state statute.
Lewis Marchino explained that Region 9 intends to inform and educate the known businesses that will be impacted by the redrawing and will no longer be in an enterprise zone, noting that “they can grandfather if they have used tax credits before.”
She mentioned that if they have not used tax credits before, “they’re kind of out of luck.”
She added, “All this goes into effect in January.”
Lewis Marchino described being eligible for an enterprise zone certification as a “mixed blessing,” in that it means the business is in an economically distressed area, but not being certified means losing a tax credit.
Timber biomass report
During the same meeting, Lewis Marchino also explained that Region 9 has completed its timber biomass report.
“We have our timber biomass business development report,” she stated, noting that Archuleta County “advocated very strongly for this.”
Lewis Marchino commented that the report is “very detailed” and talks about potential business areas around the timber industry.
According to the report, “The Southwest Colorado Biofuel Development Opportunity (BDO) Zone, is rated ‘BBB’, or ‘low-moderate’ risk.”
Liabilities noted in the report include a high risk associated with community opposition to forest restoration and biomass utilization activities, a high reliance on government subsidies, declining sawmill capacity due to reduced fiber availability from the San Juan National Forest, and significant investment risks associated with securing rated quantities from national and state forests.
According to the report, zone assets include existing logging and grinding equipment capacity that is sufficient to supply rated biomass quantities, opportunities to co-locate with existing sawmills, limited competition for available sawmill residues and a low cost for regional utilities.
The report can be viewed in its entirety at https://www.region9edd.org/pdfs/swco_wood_biomass.pdf.
clayton@pagosasun.com
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