Local businesses face challenge from state ballot propositions and second homeowners in the resort core

Local businesses are crucial for community vitality. They shape the community's identity and foster growth but face numerous challenges that threaten both the businesses' survival and the vitality of the community.

It is important to understand the foundational information about the economies of our mountain towns. Local businesses play a significant role in providing employment opportunities within our communities. In Eagle County, 90% of our businesses have less than twenty employees and 80% have less than ten. These businesses offer a wide variety of job opportunities, ranging from entry-level positions to specialized roles, which help to enhance the overall health of the community. They are responsible for providing local services and visitor amenities, which contribute to the unique character of our community and make it a desirable place to live and visit.

Local businesses play an important role in shaping the unique identity and character of our towns. They reflect the heritage, values, and aspirations of not just the resort communities of Vail and Beaver Creek, but every town from Gypsum to Red Cliff. Our family-owned bars and restaurants, and retail boutiques and coffee shops add depth and authenticity to the fabric of our towns. They attract visitors and foster a sense of pride among residents, making our towns truly special.

Local businesses are thriving hubs of innovation and entrepreneurship. They offer budding entrepreneurs the chance to launch new ventures and explore new ideas. By fostering an encouraging environment for small-scale enterprises, communities can promote creativity, adaptability, and competitiveness, which are crucial for sustained economic growth and sustainability.

Sounds amazing, huh? It is. But it’s hard for local businesses to thrive when they are under constant attack from everything ranging from the state elections to the whims of second homeowners.

In November 2022, Proposition 125 was passed in Colorado, allowing grocery stores to sell beer and wine. Unfortunately, this has harmed the locally-owned liquor stores and Colorado's craft beverage industry, which are often not given enough shelf space at big-box retailers. As a result, local stores have seen a significant drop in wine sales, ranging from 20% to 50%, and an overall business decline of 15% to 30%.

Thankfully, Senator Dylan Roberts has sponsored HB24-1373, the Alcohol Beverage Retail License, which has received bipartisan support. This bill aims to safeguard local businesses that operate as independent retailers. It includes stronger language that prohibits discriminatory pricing practices such as "below-cost" sales and prevents wholesalers from favoring big box and grocery stores by offering them unearned volume discounts and national pricing while denying the same to Colorado's independent liquor stores.

Locally, shops and restaurants located on the ground floor are facing opposition from homeowners living on the upper floors of the same building. These residents often view the commercial establishments as a nuisance. Mixed-use developments that combine different types of spaces, including residential, commercial, and recreational, are commonplace. They create vibrant and easily accessible communities with a unique character. This also results in conflicts between commercial enterprises and residential occupants. Homeowners resort to legal action to force locally-owned shops, restaurants, bars, and other ground-floor businesses to vacate the premises.

Local businesses are crucial for the growth and vitality of our community. They contribute to the economic prosperity, local identity, social cohesion, and resilience of our area. It is important to support the pivotal role that these businesses play in shaping the well-being of our community. We need to maintain a business-friendly environment and support local entrepreneurs who face challenges from state ballot propositions and second homeowners to ensure we have a thriving and resilient community for years to come.

Chris Romer is president & CEO of Vail Valley Partnership, the regional chamber of commerce. Learn more at VailValleyPartnership.com