On May 19, the Pagosa Springs Town Council denied an outdoor commercial establishment (OCE) permit for Shine Gelato.
The applicant was proposing to operate a seasonal OCE, consisting of a mobile, solar-powered cart at the downtown scenic overlook.
A staff report on the matter states that “the subject property is Town-owned land and is zoned Open Space and Parks.”
The report also explains more about the proposed operation.
“Although the unit is mobile, the request is for a fixed seasonal location within an existing public gathering area at the Town of Pagosa Springs Scenic Overlook,” the report states.
“The cart is designed to be self-contained and temporary. The operation is intended to serve pedestrian traffic in the area, including those using the Riverwalk and Scenic Overlook,” the report states.
“The site already includes seating and pedestrian access, and no additional permanent improvements are proposed as part of this request,” the report states.
Senior Planner Katelyn Tunnell explained that staff had reviewed the application, prepared by Shine Gelato CEO Matthew Sherrill, and that she believed that it generally aligned with the applicable provisions of the Land Use and Development Code (LUDC), but that since the proposal is located on town-owned property, town council review and direction is required.
Tunnell also pointed to staff’s belief that this vendor would support a town goal of increasing “pedestrian activity” in the area.
The proposal was routed to Public Works, the Police Department, and Parks and Recreation, with the Parks and Recreation Department raising concerns regarding existing downtown conditions during the ongoing reconstruction project, including potential impacts to current businesses, she explained.
These considerations may be relevant when evaluating the timing and location of the proposed operation, she explained.
During public comment, Audrey Bliss, owner of an ice cream shop across the street from where the gelato stand proposed to do business, expressed opposition to the permit for that location.
She told the council she was worried about the “impact” that vendors would have on “our local brick-and-mortar businesses.”
“Our local storefront businesses have made a major investment in our community. We pay rent and mortgages, utilities, taxes, licensing fees, payroll, maintenance, and that’s always all year-round, even during the slower season when tourism drops,” she explained.
She said that “while vendors are entrepreneurial and valuable in some settings, they often operate with a significantly lower overhead and can enter during peak tourism seasons, which completely conflicts with the same customers that we’re trying to bring in.”
She continued, “This creates an uneven playing field,” adding that “businesses who have committed long-term to our community should not be put at a disadvantage by temporary competition that does not share the same obligations to the community.”
She added, “This isn’t about being anti-small business … It’s about thoughtful planning and fairness.”
She concluded, “Vendors may be better suited for special events, farmers markets and specific locations that complement, not compete, with local businesses, and, furthermore, when the [town] overlook was built, it was never intended as a commercial space, hence the zoning.”
Council member Leonard Martinez noted that while he appreciated that this could increase pedestrian activity in downtown, he still worried about the concerns of “fellow businesses.”
He added, “This is an exciting idea, but I’m not convinced this is the right time and place” for it.
Mayor Shari Pierce noted, “I always have a problem with things like this competing with our local brick-and-mortar stores,” expressing that she was “not in favor” of approving the OCE permit.
Council members Brooks Lindner and Mat deGraaf asked if the vendor should think about a different location.
Council member Gary Williams said, “I really like the idea that this kind of mobile business brings to town,” but also expressed that the local store front owner has “legitimate concerns” since this would be operating “right across the street.”
He suggested that the town’s planning commission should think about “mapping out a zone” where these types of vendors could operate.
Martinez suggested that the town needed to “get beyond” the reconstruction project disrupting downtown and then possibly reconsider allowing a vendor like this to operate.
“It’s not the right time,” he said.
When a motion was made to deny the OCE permit for Shine Gelato it was seconded and approved unanimously by the council.
derek@pagosasun.com
>