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Publisher’s Letter
November ballot Items: Generally speaking, we will not get into political selection or discourse within our pages or other platforms Business Forum & Digest distribution outlets. However, two issues face the electorate this November that have a direct correlation to economic development, public safety, and business prosperity. Hence, we are confident our comments in support of the following are appropriate:
1. Ballot item 2C: Colorado Springs residents and businesses have enjoyed the benefits of both iterations related 2C, initiated during the Suthers’ administration’s first term, then extended for another four years.
Progress on that initiative is only about onethird complete. There is an extensive network of surface roads throughout El Paso County much of it still needing attention due to prolonged deferred maintenance.
Why it matters: When prospective employers visit, they are met with an initial impression about a great many things. Specific to this item: when our roads and medians are clearly being maintained, it sends the message that the city and taxpayers, including businesses, understand the importance of infrastructure renewal and reasonable taxation to that end.
2C is not a new tax. We’ve been paying in for nearly 10 years. It is a continuation of a tax that ensures our county’s ability to maintain its most basic of infrastructure: paved and maintained roads, remains funded. Recommendation: Vote: YES, on 2C.
2. The intersection of economic/public confidence
and law and order: Ask the chambers in Portland, San Francisco, and even Denver where there is an overemphasis on criminal reform over holding criminals into account, how they are weathering business retention these days.
Employers and police officers look at that. Does the District Attorney’s office prosecute cases brought before them for obvious crimes, like those committed in the aforementioned communities, or does the DA use the office as a beta-test site for criminal reform endeavors at the expense of the public and taxpayers? Criminal reform and mercy for first time offenders has a place no doubt, but law and order must come first to retain confidence of employers and those living here. While crime is still a major issue in every community including those in southern Colorado, the 4th Judicial District is prosecuting 90% of cases. Denver: 30%. Recommendation: Vote to re-elect Michael Allen.
Until next time,
Dirk R. Hobbs, Founder & Executive Publisher Colorado Media Group, Inc.
Contents / September/October 2024
This Biking Resort is a local gem! P. 14
TOURISM
10 Tourism Shines in Summer
The Pikes Peak region attracted visitors in droves over the summer season, between Pikes Peak Hill Climb in June and Labor Day Lift Off. Three new hotels opened near COS airport but will autumn’s changing colors draw similar crowds or will tourists opt for other locales?
BY JEANNE DAVANT
32 Complaints Won’t Blur Roth’s Vision
The 8,000-seat Ford Amphitheater made its public debut on Aug. 9 but the legal challenges and noise complaints continue. Despite widespread praise as a world-class venue, an economic driver and a tourist attraction, Ford Amphitheater has a history of controversy. Read the recap and the latest here.
BY KERI KAHN
TECHNOLOGY
8 Customers Benefiting from Fiber Internet Competition
If the current players have their way, many El Paso County residents will have multiple choices for internet access at speeds of one-gigabit-per-second or more. This anticipated crowded market is described by one analyst as “a consumer bonanza” but is that activity sustainable over the long term?
BY WAYNE HEILMAN AND JEANNE DAVANT
SMALL BUSINESS SPOTLIGHT
14 The Buffalo Lodge Bicycle Resort is a Local Gem
When a love for the outdoors and a business dream collide, the results are exhausting and exhilarating; just ask Tori Giffin. The visionary leader of the Buffalo Lodge Bicycle Resort combined her love of cycling with her background in events to create the ultimate cycling tourist lodging.
BY KERI KAHN
BUSINESS: SUCCESSION
18 Employee Ownership Enable Businesses to Continue after Owners Retire
If higher employee retention rates, more engagement, meaningful contributions and job security are some of the ingredients of the perfect employee scenario (aka Land of Oz), then Employee Stock Ownership Plans may be the yellow-brick road. Read details of how the Colorado Employee Ownership Office guided the transition of the Brewing Science Institute in Woodland Park last year.
BY JEANNE DAVANT
PEOPLE
20 Professionals on the Rise
Get to know some of those people in the region who have made leaps in their careers. This is where The Digest celebrates the achievements of Southern Colorado’s workforce.
ECONOMIC DEVELOPMENT
22 Pueblo Chemical Depot Reimagined for More than Storage
Officially emptied of the last chemical weapon, the U.S. Army has transferred the first parcel of land for development. Introducing: PuebloPlex, 36 square miles of sprawling industrial park that hosts testing train tracks, heavy maintenance facilities, an emergency response training center…and about two dozen ferrets.
BY WAYNE HEILMAN
NONPROFIT
24 NeuroAlly Family Fund Pioneers Financial Support for Neurodivergent Families
Founded by Dawn Lissy of Empirical Technologies, NAFF raises money to help for therapies that are rarely if ever covered by insurance. Facilitating access to suitable programs across the country, Lissy’s organization will host Gala for Good on Oct. 19 at Opus Creative Studios in Colorado Springs.
BY LUCY RICHARDSON
UTILITIES
25 Partnering with Farmers to Develop New Water Supply
Water is a life force that connects all residents, especially in the desert climes of Southern Colorado. Springs Utilities is acquiring new supplies through water sharing partnerships, designed to meet agricultural and municipal needs.
BY COLORADO SPRINGS UTILITIES
ECONOMIC FORUM
28 Why Has the U.S. Economic Recovery Been so Strong?
Four-plus years after the onset of the Covid-19 pandemic, the country is showing remarkable resilience. The second quarter of 2024 was better than the fourth quarter of 2019. Read why the U.S. has done so well, according to some leading economic minds.
BY DR. BILL CRAIGHEAD
FINANCE
33 Home-Grown Mortgage Solutions Financial Continues to Expand
With a new 80,000-square-foot headquarters, this full-service financial lender heads toward 30 years in business. And, while they call COS home, MSF has 44 branches and 400 employees across the U.S. BY PAM BALES
EDUCATION
36 Bauernfiend Settles in as Air Force Academy’s 22nd Superintendent
Before arriving in Colorado Springs, Lt. Gen. Tony Bauernfeind served in Afghanistan and South Korea, and most recently was the U.S. Air Force Special Operations Command top general. He will now lead the 47-month program of military education and leadership development to reflect the U.S. Air Force and U.S. Space Force directives. BY PAM BALES
Updates From Around the Region
Parker
Parker Working with Douglas County on Homelessness
The Douglas County Housing Partnership (DCHP) will work with Parker, Castle Pines, Castle Rock, Lone Tree and the Douglas County Board of Commissioners on a regional approach to homelessness. The housing authority, formed in 2003, covers multiple jurisdictions to work with businesses and local and county government in an effort to address a lack of housing.
The goal is to receive funding through Proposition 123, approved by Colorado voters in 2022, and aimed at increasing the number of affordable housing units as well as creating homelessness assistance programs.
The proposition directs 0.1% of Colorado income tax revenue to assist in developing affordable housing and programs to support affordable housing. It’s estimated that the DCHP and its partners hope to create more than 1,000 housing units in Douglas County.
To qualify for the Proposition 123 funding, DCHP needed to establish a baseline number of units, committing to increase the number by 3% a year, over the next three years.
More information on Proposition 123 and the Affordable Housing Financing Fund it created can be found here: oedit.colorado.gov/ proposition-123-colorado-affordable-housing-financing-fund
El Paso
Pikes Peak State College (PPSC) introduces its new Bachelor of Applied Science (BAS) in Cybersecurity this semester, reinforcing Colorado Springs' reputation as a hub for cybersecurity. As the need for cybersecurity skyrockets in both the private and public sectors, this degree will keep pace with the need for trained professionals both regionally and across the nation.
Dr. Lance Bolton, Pikes Peak State College President, said, "We are confident this new bachelor's degree will provide top-tier education and training that supports Colorado Springs goals as a leader in the cybersecurity industry."
Cañon
City & Pueblo New Developments in AMR Colorado Operations
Following The Digest’s August report on American Medical Response (AMR), a provider of emergency medical services in the region, new developments were announced in Colorado which could reshape its role in certain areas.
According to recent reports, the provider has entered into discussions with the Cañon City Area Fire Protection District to improve communication and response times. These discussions include the potential implementation of a CAD-to-CAD link for better coordination between dispatch systems. Computeraided Dispatch is a system often used by dispatchers to identify the status and location of responders.
Additionally, AMR has committed to maintaining response times of no more than eight minutes in urban areas and 12 minutes in suburban areas, with a goal of achieving a 90% on-time response rate. In Cañon City, due to the more rural areas within the city limits, AMR is currently achieving an 87% compliance rate with an average response time of five minutes, seven seconds. Pueblo, a more residential city has achieved a compliance rate of 93.3%. Pueblo AMR average response time is six minutes, 18 seconds.
In Colorado, local governments hold significant control over emergency ground ambulance services. An AMR spokesperson says, “This includes what level of emergency medical services will be provided, how EMS will be funded, and even whether EMS will be provided at all, as EMS is not considered an “essential service” in Colorado and many other states. It is difficult to overstate the incredible variability in EMS design, including response time goals and how response times are measured.”
The state’s EMS System Sustainability Task Force, created by Senate Bill 22-225, highlighted these inconsistencies in its September 2023 Phase I Report. The report noted that Colorado’s decentralized EMS system, while historically addressing local needs, now faces challenges in building a cohesive and sustainable statewide framework.
Regional Professional Business Organization Links & Events
BBB of Southern Colorado bbb.org/local-bbb/bbb-of-southern-colorado
Castle Rock Chamber castlerock.org
Colorado Springs Chamber & EDC coloradospringschamberedc.com
The Colorado Springs Black Chamber cosblackchamber.com
Greater Woodland Park Chamber of Commerce woodlandparkchamber.com
Latino Chamber of Commerce of Pueblo, Inc. pueblolatinochamber.com
Pueblo Economic Development Corp. pedco.org
Royal Gorge Chamber Alliance royalgorgechamberalliance.org
Colorado SBDC - Pikes Peak Small Business Development Center pikespeaksbdc.org
Southern Colorado Women’s Chamber scwcc.com
Tri-Lakes Chamber of Commerce Economic Development Visitor Center trilakeschamber.com
Trinidad & Las Animas County Chamber of Commerce tlacchamber.org
Chamber organizations interested in seeing their names here should contact Jeff Mohrfeld at jmohrfeld@coloradomediagroup.com
Cover Story: Technology
Customers Benefiting from Fiber Internet Competition
BY WAYNE HEILMAN AND JEANNE DAVANT
Colorado Springs-area residents are beginning to realize the promise of faster and less expensive internet access as three fiber-optic providers expand service capable of “multigigabit” download and upload speeds.
Colorado Springs Utilities and high-speed internet providers Underline Infrastructure and Metronet launched construction of their networks between late 2021 and late 2022. Underline and Metronet are serving customers in different parts of the area. Springs Utilities is not providing direct internet services to customers but has contracted with Ting to do so. The area’s two largest internet providers, Comcast (Xfinity) and Lumen Technologies’ CenturyLink unit, are investing heavily in upgrading their networks, and Comcast has cut its prices.
“We are creating a competitive marketplace that will force everyone to get better,” says Underline CEO Bob Thompson. “We have laid 2.5 million feet of fiber that will be available to 70,000 homes by the end of September, and we have done it on time and under budget. We have committed more than $100 million to this project.”
The Dallas-based company is expanding its footprint in the Colorado Springs vicinity, which was its first market, he says.
Comcast’s prices have fallen from $60 a month for 50 megabit-persecond service to $19.99 a month for 150-megabit-per-second service, while the price for one-gigabit service has dropped from $110 to $75 a month. Metronet has cut its prices from when it announced plans to build its $130 million network in Colorado Springs by $10 a month for its 100-megabit-persecond service and $20 a month for its one-gigabit-per-second service.
Comcast also has been spending heavily to upgrade its Colorado Springs network, and all 240,000 Colorado Springs-area customers now have access to two-gigabit-persecond service, says Leslie Oliver, a company spokeswoman. Comcast began rolling out new technology about a year ago in Colorado Springs, the first market in the nation to receive it, enabling multigigabit symmetrical speeds.
Lumen said in an email statement that it has more than doubled the number of area households that can access its Quantum Fiber service during the past two years to 86,000. The service is available at $50 a month for 500 megabits-per-second, $75 a month for 940 megabits-per-second and $95 a month for 2 gigabits-persecond. Those rates are guaranteed for as long as the customer keeps their plan.
“Competition drives pricing — we are offering a $100 gift card for new subscribers, depending on the speed [they order],” says Kris Smith, a former Monument resident who is Metronet’s senior vice president for a region that includes Colorado and four other states. “Several of us [fiber providers] recognized the need for choice. The market is underserved in Colorado Springs. Better service and pricing are good for residents.”
If all three organizations complete their plans, many area residents will eventually have multiple choices for internet access at speeds of onegigabit-per-second or more, including Comcast, CenturyLink and one or two of the fiber providers. While Ting will offer service wherever the Springs Utilities network goes, executives from both Underline and Metronet say they will not build in areas already served by another fiber provider.
That will make for a crowded market, according to one analyst.
Ray Gifford, managing partner of law firm Wilkinson Barker Knauer’s
Denver office and former chairman of the Colorado Public Utilities Commission, says competition from the upstarts in the fiber industry is challenging cable, which has been the dominant broadband platform in the 21st century, and customers are benefiting.
In the cellular industry, “at least three and, in most cases, four players nationwide are duking it out pretty successfully,” he says.
But in the current broadband landscape, which includes fiber and wireless 5G players, “investing in multiple networks could mean not that one succeeds [but that] all of them fail because they compete so ferociously against each other that none of them can cover their fixed costs,” he says.
Two broadband providers in a market “is a party, three is a crowd and four or five is unbelievable,” Gifford said in a 2022 interview with The Gazette.
“I still think five networks is going to end up being too many,” Gifford says. Those that succeed likely will be well capitalized and have deep
pockets, while the rest will be unable to defray fixed costs across a large enough customer base to be viable.
In the short term, “it’s going to be a consumer bonanza — prices will go lower, speeds will get better,” he says. “The question is, is that sustainable over the long term? Experience says no.”
What has played out in network markets again and again, he says, is that “after the initial multiple entrance phase, you have a wave of consolidation and retrenchment.”
An update on major local fiber providers:
Underline now provides internet access to Cheyenne Mountain School District 12, Colorado Springs School District 11 and Harrison School District 2 and is available to residents living within those three districts, which includes much of Colorado Springs. Thompson says the company has completed about half of its network and expects its network to be available to more than 100,000 households within the next year and a half.
Cover Story: Technology
The company charges $49 a month for 500-megabit-per-second service, $65 for one-gigabit-per-second service and $295 a month for up to 100-gigabit-per-second service with cybersecurity and disaster recovery services for businesses.
Colorado Springs and Fountain are the only cities served by Underline, but Thompson says the company expects to announce plans by year’s end to build networks in up to 10 other cities and up to 100 cities within 5-7 years. Underline is funded by America Online founder Steve Case and Laurene Powell Jobs, widow of Apple founder Steve Jobs, but Thompson says the company will need to raise both debt and equity capital to expand.
Evansville, Indiana-based Metronet has laid one million feet of fiber, starting in the Briargate area, but is now expanding into the Cimarron Hills neighbor in east Colorado Springs, downtown and the west side of Colorado Springs, Smith says. The company’s network is about half complete and is scheduled to be finished by early 2026, but the company and its contractors have damaged Colorado Springs Utilities infrastructure 89 times in the past two years and paid fines totaling $433,500.
Smith calls the damage “unfortunate” and adds that Metronet is now part of Colorado Springs Underground Damage Prevention Safety Program administered by Colorado Springs Utilities that regulates and sets requirements for excavation. She said the company has
a “wonderful relationship” with the city-owned utility provider.
A joint venture of wireless giant T-Mobile and private equity giant KKR agreed in July to acquire Metronet, which operates networks in more than 300 cities in 17 states which are available to more than two million homes and businesses. Metronet will become a wholesale provider for its retail customers, who will become T-Mobile customers once the transaction is completed next year. T-Mobile will sell Metronet’s service and provide customer support.
Colorado Springs Utilities is building its $600 million fiber network to serve future utility functions, rather than to connect individual customers to high-speed internet, says Thane LaBarre, manager for the Springs Utilities network transport services team.
“This is the infrastructure that gives us the ability to control microgrid situations in real time, to manage demand and account for the generation coming out of that and how it fits within the overall scheme of things — and there are a lot of other pieces,” LaBarre says. “The fiber is really a pathway to provide for that data communication.”
Utilities signed a 25-year, $593 million lease in 2022 for Charlottesville, Virginia-based Ting to provide service from the Springs Utilities infrastructure to residential and commercial customers, and the network will have additional capacity for other service providers, LeBarre says.
Construction is underway in the Austin Bluffs and Woodmen areas and is scheduled to begin soon in the Rockrimmon and Cragmor areas, he says. Pacific, Missouri-based ADB Companies is the prime contractor.
Colorado Springs Utilities was targeting 2028 for completing the 2,000-mile network, but LaBarre says completion likely will take longer because of recent delays and changes to the construction team.
Although “CSU has the right to install the infrastructure in the right-of-way or easements CSU has access to, some of the communication [in affected areas] has been lacking, in some of our early work, and there was a lot of confusion around that,” LaBarre says. “We’re making changes to make sure we have that communication shored up.”
Ting is offering two-gigabit-persecond service to homes at $89 per month and basic business service at $139 per month. Deb Walker, Ting’s regional community engagement and public affairs manager, says Ting does not publicly release the number of customers it has but at the end of the second quarter, “we had just shy of 9,000 addresses that we could serve.”
Mountain View Electric is spending $190 million to build a 5,800-mile fiber-optic network to serve its more than 50,000 members with service available to about 10,000 households in the Falcon and Limon areas, despite initial construction delays, according to a story in the
co-op’s customer magazine. Another 8,000 households in parts of the Black Forest area are expected to have service available by year’s end with construction following in Calhan. Mountain View has received three state grants totaling $2.72 million to build the network in rural areas.
Elsewhere in the Colorado Springs area, Stratus IQ provides fiber-optic internet service in parts of Colorado Springs and El Paso County and will offer service over Underline’s network. Force Broadband, a local company, has been providing fiber internet service in Monument for several years. Fiberoptic cable was laid along several blocks of Manitou Avenue during an infrastructure improvement project, but it has remained untapped.
Both T-Mobile and Verizon offer home internet service over their wireless networks, but at speeds of up to 250300 megabits per second. T-Mobile says in a statement that it is too early to determine whether the company will continue to offer the service locally after it acquires Metronet.
Wayne Heilman is a senior writer for the SoCo Business Forum & Digest.
Jeanne Davant is a senior writer for the SoCo Business Forum & Digest.
Bundles of fiber optic cable.
Tourism Tourism Shines in Summer — Could it Dim this Fall?
BY JEANNE DAVANT
Summer tourism in the Pikes Peak region sparkled with wellattended events, steady hotel occupancy and an increase in traffic at Colorado Springs Airport.
Doug Price, president and CEO of Visit Colorado Springs, hopes those highlights portend a lucrative fall season for the travel and tourism industry, but says fall is a wild card in an election year.
Summer kicked off on Memorial Day with excellent attendance at Territory Days in Old Colorado City, Price says.
“I don’t have attendance numbers, but the weather was perfect,” he says.
On June 21, the Pikes Peak Hill Climb Fan Fest drew more than 35,000 people to downtown Colorado Springs, and nearly 10,000 people attended the race. Price says organizers report more than $12 million in economic impact for the overall event.
The Pikes Peak Regional Air Show, which featured the U.S. Navy Blue Angels, on Aug. 17 and 18 sold out both days, with 30,000 tickets snapped up total. While Price doesn’t have any dollar figures or hotel numbers yet, he says that 70% of the tickets were sold to spectators from outside Colorado Springs.
The weather also cooperated for annual Labor Day Liftoff, with the balloons able to fly all three days.
“Estimates are about 195,000 people were there between Saturday, Sunday and Monday,” Price says. “We really were blessed from an event standpoint.”
Despite inflation, hotel occupancy remained at 64.9% for January through July, he says.
“That was just a 0.1% drop from 2023, and that’s really good because inflation is hitting the travel industry — hotel room rates, food and beverage and airline tickets,” he says.
The post-pandemic reopening of international travel could also have stunted domestic travel.
“Americans are going abroad because
they haven’t been able to do that much the last several years,” he says.
Three new hotels opened this summer, all near the Colorado Springs Airport. These include Home2Suites by Hilton, Tru by Hilton and Homewood Suites by Hilton. This added a total of 295 rooms to the market, according to Visit COS data.
At COS, traffic has been on the rise, with numbers that increased year-over-year in July. The airport saw a total of 250,761 passengers in July, a 9% increase over July 2023, according to an Aug. 28 release. Enplanements — the number of passengers boarding planes at the airport — were up by 8.5% over the previous July.
“The addition of a nonstop route to Baltimore/Washington on Southwest Airlines, as well as seasonal service to Burbank and Minneapolis/St. Paul, contributed to a successful end to the summer season,” says COS Director of Aviation Greg Phillips.
The airport’s three-year, $36 million concourse modernization project, ElevateCOS, “is making great strides in creating a warm and inclusive environment for all individuals visiting the beautiful Pikes Peak region and for those passing through our airport,” Phillips says. The airport is adding accessibility features, including ADA-compliant bathrooms and a redesign of the ramp at the concourse entrance, and sustainability
U.S. Navy Blue Angels, on Aug. 17 and 18 sold out both days, with 30,000 tickets snapped up total.
features including exterior window glazing and frames to help conserve HVAC use, LED energy-efficient lighting, mechanical upgrades and water-efficient plumbing features.
This fall, “we may not see the same levels of occupancy as we saw in 2023,” Price says.
“A presidential election year traditionally leads some people to pause their travel plans, and that’s particularly true for corporations.”
People will still be traveling to the state and the region to view the changing leaves, and Visit COS is running advertisements touting the fall colors and the area’s celebration of the arts, as October is Arts Month.
“The last couple of years, we’ve put more advertising dollars into this time of year,” Price says.
A theme that’s new this year is accessible travel, Price says. Visit COS is featuring a video made by Wheel the World showcasing lodging and activities for people of all abilities.
Price also sees bright spots ahead.
“We are excited about the opening of the Hotel Polaris,” the hotel at the U.S. Air Force Academy that will add 375 rooms, bringing the total rooms added in 2024 to 551. Price says a soft opening is set for Veterans Day, Nov. 11.
The Ford Amphitheater “is what is new and different this fall compared to 2023,” he says. “We are waiting to see how people will come from around the region and up north to see some of this entertainment.”
Traffic at the airport tends to slow down in the fall, but that can encourage some people to book a flight, Philips says.
“Visitors who are drawn to the city for outdoor activities and fall scenery will find convenient access to our region through the use of our airport,” he says.
Jeanne Davant is a senior writer for the SoCo Business Forum & Digest.
Doug Price, president and CEO of Visit Colorado Springs.
Photo Source: Krys Fakir, Photographer
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TechSTART Puts Cañon City’s Tech Industry on the Map
BY JEANNE DAVANT
When Rob Brown and his wife, Karen, moved to Cañon City from Denver in 2007, they left behind the big-city noise they’d lived with for 25 years, but they brought their high-tech skills with them. For Brown, it was a return to his hometown, where he could run his two big-data companies but slip out the door and, in a few minutes, be fishing on the Arkansas River.
He had no idea that another tech couple lived two doors away, or that tech folks with similar stories were scattered around town — people like Brad Rowland, who fled the tech pressure cooker and a long commute in Silicon Valley.
Some of these people started meeting each other at local events. But it wasn’t until Brown presented a concept called profit clusters — micro ecosystems focused on individual markets — that they realized they had the potential to be an economic force.
Eleven years ago, Brown was asked to join a reboot of the Fremont Economic Development Corporation (FEDC).
After 40 years, “the organization had kind of lost momentum,” Brown says. FEDC held a series of economic summits to explore how it needed to change and found a desire for support, information and connections.
The members of FEDC, all volunteers, started talking about profit clusters as a way to do that.
“We struggled to get people to understand what that meant,” Brown says. “We decided, why don’t we just build one from scratch, and we’ll show people what we have in mind.”
Brown brought in Rowland and other key people, and they devised a plan for a profit cluster focused on incubating technology-based businesses and creating jobs. They named it FEDC TechSTART.
“We were pleasantly surprised to discover that there was a tech community here. It was just dormant,” Brown says. “One at a time, we started
TechSTART is spawning new profit clusters, including AgSTART; WellSTART, serving health and wellness businesses; and TradeSTART, focused on trades-based careers — all run by volunteers.
putting our hand on the shoulders of individuals with that background and started to bring them in.”
As TechSTART gained momentum, “we decided to create a brick-andmortar home base for our concept,” Brown says. They negotiated a deal for the vacant top floor of the historic Apex building on Main Street. It needed significant rehabilitation, so they rolled up their sleeves and started renovations.
“Very quickly, we had eight or 10 businesses, and then a dozen, and then 20, and we went from there,” he says.
Early Success
One of the most successful of the early participants was 3 Rocks Engineering & Surveying, a civil engineering firm that Alex and Andrea Ewers founded. They returned to Cañon City, Andrea’s hometown, after living and working in several other areas of the state and started 3 Rocks in 2019, working out of a boat shop. They were looking for a more suitable space when they met Rowland and a couple of other TechSTART participants. Since 3 Rocks was a techadjacent business, they were invited to work out of the incubator space.
“It was really nice to have other people down the hallway to bounce ideas off of,” Ewers says. “It was really helpful for us getting off the ground.”
The company started off in civil engineering, but 50% of the calls it was getting were requests for structural engineering, he says. Ewers added a structural department, and within two years, the company had outgrown the space and moved across the street to larger quarters. Today, it has 30 employees and additional offices in Colorado Springs and Buena Vista, and also does land surveying, construction administration and research and development.
“We’ve won about a million dollars in grants over the last two years to work on a head gate that we patented,” Ewers says. The device automatically regulates water flow in applications like irrigation ditches and detention basins.
A New Space
Within a few years of its creation, TechSTART itself was running out of space.
Not finding another suitable building in Cañon City, Rowland and three other entrepreneurs bought a 100-year-old high school building being decommissioned by the Florence School District, with plans to convert it into a business center with office, co-working and event spaces. Again, sleeves were rolled up; renovations began, and a few tenants were brought in. They’re still
renovating, but their work already has won them a state award for historic preservation with unique repurposing for job creation.
As of now, Emergent has 18 tenants, Rowland says. They include Optimum Guidance Behavior Consulting, a group of therapists who work with children on the spectrum. “In a rural community, that’s usually a one-person business, but now they have 20 employees because they have the right kind of physical space,” Rowland says.
• Second-61, which delivers managed tech, cybersecurity and accounting solutions to government and business clients, founded by Chris Koehn, one of Rowland’s partners in the Emergent campus.
• Barn Owl Precision Agriculture, cofounded by Colorado native Sarah Hinkley, which makes imaging drones and autonomous microtractors for small and midsize farms. The company was awarded a $200,000 Advanced Industries grant from the state in 2021 and won the 2024 Colorado Farm Bureau Ag Innovation Challenge, with a $50,000 grant to further grow the business.
Technology
Perhaps the best-known tenant is Greenwood Village-based Pax8, an Inc. 500 company that offers cloud, AI and other tech services. The company was drawn to establish an outpost on the Florence campus because of the promise of tech talent in the area.
A Winning Track Record
“TechSTART took our community from zero to 300 technology jobs in six years,” says Rick Harrmann, Cañon City’s economic development manager.
Before TechSTART, a company that wanted to start a call center outside Denver rejected FEDC’s bid. “They said, ‘You’re not really relevant in the tech space,’” Brown says. But now, Cañon City has a seat at the table.
“Eyes are on Fremont County almost exclusively because of TechSTART,” Harrmann says. It’s also spawning new profit clusters, including AgSTART; WellSTART, serving health and wellness businesses; and
TradeSTART, focused on tradesbased careers — all run by volunteers.
“We’ve had so many wins,” Rowland says. “We won the first rural P-TECH (Pathways to Technology) grant in the state, which enables our high school students to go into a STEM pathways learning track and get two years of free college at Pueblo Community College.”
Harrmann and Brown are looking to reboot TechSTART at a location in Cañon City, and Emergent is creating a new campus in Trinidad.
“We look at economic development from a regional perspective,” Harrmann says. “We want to do this all over the region.”
TechSTART “is just really unique,” Ewers says. “It’s all there thanks to some wonderful people, and I’m very thankful for all they’ve done."
Jeanne Davant is a senior writer for the SoCo Business Forum & Digest.
Photo source: FEDC TechSTART
TechSTART is spawning new profit clusters, including AgSTART; WellSTART, serving health and wellness businesses; and TradeSTART, focused on tradesbased careers — all run by volunteers.
Small Business Spotlight
The Buffalo Lodge Bicycle Resort is a Local Gem Dream Come True for Torie Giffin
BY KERI KAHN
Torie Giffin is an inspiration. Owner of the Buffalo Lodge Bicycle Resort, she is proof that, even in the face of adversity, a determined woman can make her business dreams come true. That’s exactly what she did with the Buffalo Lodge Bicycle Resort.
A single mom to three children (and a full-time caregiver to the youngest), Giffin sought out, purchased and renovated the bicycle village she dreamt of in 2015. In September, she received the 2024 Don Brown Entrepreneur Award from the Southern Colorado Women’s Chamber of Commerce.
It started with a need for community
For years, Giffin had found community through cycling. The entrepreneur moved to Colorado Springs from Phoenix in 2002 and quickly joined the Colorado Springs Cycling Club. She was a stay-at-home mom at the time but eventually found herself teaching spin classes at the YMCA, founding a mom’s walking
group and taking a job as marketing director for the Chick-fil-A on Garden of the Gods Road. She delivered free chicken to various businesses each week, and organized the restaurant’s Patriots’ Festival and Ride for Heroes. Before she knew it, she was immersed in the tight-knit community of local bike race organizers and had developed an extensive network.
When her vision for the hotel began taking shape, it was this network that helped with funding, counsel and renovations in 2016.
“If I had business advice, it is to build your network,” she says. “Your network can come from anywhere — from your classes at the YMCA, from your mom’s walking club. Get involved in your community.”
The vision comes to life
The vision of a hotel for bicyclists presented itself to Giffin in her dreams. They were vivid dreams of what looked like “a little bicycle village” with fire pits, a pool, but most of all a sense of community.
She did some Googling, told a few friends, and secured a domain name. When it came time to cast a wider net for feedback, she had an
impressive list of contacts. Everyone agreed Torie Giffin’s dream would be a great addition to the cycling mecca that is the Pikes Peak region. She had the drive. She had the support. She stumbled upon the location while simultaneously delivering free chicken to a trail building crew and scouting out a new route for Chick-filA’s Ride for Heroes.
Nestled on the city’s westside at the intersection of El Paso Blvd. and Columbia Rd. she came across a nondescript old motel. It was the historic Buffalo Lodge property, built in 1919 and once touted as “Colorado’s Most Modern Cottage City.” Given its proximity to the bike paths at Garden of the Gods, Red Rock Canyon Open Space and North Cheyenne Cañon, she decided to check it out.
“I started driving down the row. It was single level. You could ride your bike right in the rooms. It looked like a little village. I came around the back where there was event space and a pool. It was everything I had dreamed about — the fire pits, the sense of community, a little bicycle village,” she says. “I was literally like ‘this is the place.’ I went in and said ‘Hi, my name’s Torie and if you ever decide to sell this place, would you give me a call’?”
The family who owned the rundown property had listed it a decade earlier. She was told of the problems and needed repairs, but all Giffin heard was, “They’re asking $1.4 million but they’ll take $1.2.”
Giffin’s first investor was her mother, who currently owns 13% of the business. She pulled in her network, acquired loans from friends and took out a bank loan for 20% down, which she says she wouldn’t have secured if not for her network.
Thriving through hardship
A host of personal challenges, including her youngest son’s diagnosis of recurring brain tumor in 2018, threatened to squash the dream.
“I was told during my divorce I should let go of the hotel and just be a full-time caregiver, but what job would I have had and what could I have done to provide for my kids?”
In the end, making her dream come true is what afforded her the opportunity to support her family and be a full-time caregiver for her son. Giffin’s two oldest children have flown the nest. Her 17-year-old son is in her
Small Business Spotlight
care 24/7 from the home she has made on the grounds of The Buffalo Lodge Bicycle Resort.
It is quite a home, too. As the owner/operator of the business, Giffin oversees operations, capital projects, and development, but is always a stone’s throw away from her son in an atmosphere with community bike rides, live music, local craft markets, aqua fitness classes, yoga, volleyball and the coming together of adventurers from far and wide.
Challenges to overcome and opportunities for the future
From Sep. 2023 to Sep. 2024, the business saw a 27% increase in room nights.
“It doesn’t look like much during the day. The streets are empty. People are out adventuring. The tourists are gone, but then all of the sudden at 3:00 everyone’s coming in,” she says of her village.
When the Digest toured the location, 10 of the rooms were booked out for the Wounded Warrior Project’s Soldier Ride. Tourists were beginning to return from a day of exploration and relax in one of the 46 uniquely decorated rooms or four glamping tents on the fouracre site.
The winter is a challenge for Giffin. Southern Colorado may be an ideal winter cycling destination for those who live in harsher climates, but competing
with the rates chain hotels offer can be difficult.
“But I think people are looking for unique travel experiences and something different from the chain hotel experience,” she says. “We're located right where everyone wants to be to bike, hike and explore.”
She keeps it interesting, too, with the latest example being the new glamp yard, which generates more revenue.
There is also the ongoing issue of running and updating a property that’s more than 100 years old. High up on this winter’s agenda is restoring the vintage lamp posts that line the street of Giffin’s village.
Giffin is quick to credit her amazing staff and the many resources that have helped her along the way including the Small Business Development Center, the Women’s Chamber of Commerce, Exponential Impact and, of course, her network.
“They call it Smallorado because, if you get involved, get plugged in here, and if you show up to things and give back, your community remembers and supports you. It’s very much what Chick-fil-A’s culture was. Make a difference in your community and your community will give back and support you.”
Keri Kahn is a staff writer for the SoCo Business Forum & Digest.
State-of-the-Heart Care at Kaiser Permanente
Every heart deserves high-quality care. No matter your employees’ needs, Kaiser Permanente helps keep their hearts healthy with experienced doctors, cutting-edge technology and the latest evidence-based care.
Kaiser Permanente is Colorado’s leading nonprofit1 health plan and one of the state’s largest healthcare providers. We take a different approach to healthcare by combining care and coverage. This means that Kaiser Permanente’s 1,200+ Colorado doctors and health plan benefits are connected. Our care teams collaborate using a shared electronic health record to coordinate members’ care. Members also have the flexibility of choosing a doctor from our network of more than 21,000 affiliated providers along the Front Range.
Recognizing and treating an unexpected heart problem — fast
During a routine annual physical, Rich Maloy’s primary care doctor discovered a congenital heart defect that had gone undetected his entire
life. Click to watch and learn how Rich’s Kaiser Permanente care team helped catch his condition early and performed a timely, lifesaving surgery.
Supporting healthier, longer lives
Prevention is at the heart of Kaiser Permanente’s approach to cardiac care. We understand the importance of regularly checking heart health numbers and tracking them over time. Automatic reminders from our electronic health record help members stay current with preventive screenings. This allows us to spot problems earlier and start treatment sooner.
Our connected model of primary care doctors, specialists and care team members, consulting seamlessly, is why Kaiser Permanente leads the state in controlling high blood pressure2 and our members are 33% less likely to experience premature death due to heart disease. 3
More ways to care for your employees
Kaiser Permanente is investing in our southern Colorado footprint. Construction is underway on a
“It’s a very special thing when you can have that…level of trust with your primary care doctor…I think this is a unique aspect of Kaiser Permanente, with this integrated model, because the doctors are focused on the patient. ”
—
Rich Maloy, Kaiser Permanente Colorado member
brand new 15,500-square-foot medical office that will replace our current Pueblo North location. Scheduled to open in late 2025, the new Pueblo North medical offices will provide more space to deliver primary care, some specialty care and pharmacy, lab and imaging services under one roof.
With five medical offices in Southern Colorado, Kaiser Permanente makes it easier to get care — when, where and how members need it.
Find the right Kaiser Permanente health plan for your business and learn how our doctors deliver top-rated4 care.
Kaiser Permanente Colorado is composed of the nonprofit Kaiser Foundation Health Plan of Colorado and the for-profit Colorado Permanente Medical Group, P.C.
1. The source for data contained in this publication is Quality Compass® 2023 and is used with the permission of the National Committee for Quality Assurance (NCQA). NCQA specifically disclaims responsibility for any such display, analysis, interpretation, or conclusion, of Quality Compass® data. Quality Compass® is a registered trademark of NCQA. CAHPS is a registered trademark of the Agency for Healthcare Research and Quality (AHRQ).
Elizabeth A. McGlynn, PhD, et al., “Measuring Premature Mortality
Photo Source:
Business: Succession
Employee Ownership Enables Businesses to Continue After Owners Retire
BY JEANNE DAVANT
Bryan Pearson and David Bryant, partners in the Brewing Science Institute in Woodland Park, have been in the brewing business for decades, and they’re hoping to scale down their work schedules in the next five years. But they want the company they founded and built to continue and to prosper.
That’s why in 2022 they decided to transition the company, which provides yeast cultures, brewing supplies and lab services to professional brewers, to employee ownership.
In 2020, “we received a couple of solicitations from people that were interested in acquiring businesses in the brewing industry,” Pearson says. “We talked to them a little bit, and we didn’t really like the idea of selling to outside groups. We felt that we’d kind of be abandoning the people who had helped us build the company.”
Pearson and Bryant reached out to Miguel Paredes, president and founder of West Covina, Californiabased Prudent Fiduciary Services, who specializes in Employee Stock Ownership Plans (ESOP).
It was a complex process, but they
finalized a 100% employee-owned ESOP in January 2023.
According to the Colorado Employee Ownership Office, an estimated 6 out of 10 business owners across the United States plan to retire or sell their businesses within the next 10 years. However, only 15% of businesses are passed to the next generation, and only 20% of listed businesses sell. That means many owners don’t benefit financially from their decades of hard work and employees may lose their jobs.
“In Colorado, 48% of small businesses are owned by people over the age of 55,” says Nikki Maloney, director of business support with the Colorado Office of Economic Development and International Trade.
To help businesses explore and implement employee ownership for sustainable succession, Gov. Jared Polis in 2019 created the Employee Ownership Commission, which implemented the Employee Ownership Office.
“We’re on the leading edge of having these conversations in our state,” Maloney says.
Business longevity, retaining jobs and services in the state’s communities
are primary reasons for considering employee ownership plans. Many businesses benefit in other ways as well, including federal tax incentives and state tax credits that cover up to 50% of conversion costs.
Studies have shown that “many employee ownership companies have higher employee retention rates,” Maloney says. “Employees are more engaged and contribute to the business in a meaningful way, and often have job security and longevity.”
Brewing Science Institute was founded in 1996 by Katie Kunz, a UCCS microbiology student. She sold the business in 2002 to Bryant in 2002, who operated it alone until Pearson joined as a part-time partner in 2006. The two set out to grow the company, contacting people they knew in the industry.
“We started getting more sales and needing more people, and we hired our first employee in about 2008,” Pearson says. From there, the business outgrew its location twice.
“At the peak of our growth, we were at about 55 employees,” he says. After a bit of a downturn during the pandemic, it had about 45 employees when Bryant, Pearson and his wife
Corina Maldonado, the company’s administrative professional, gathered them at Phantom Canyon Brewing Co. to announce the transition to an ESOP.
They said they would sell their interest in the company and establish and invest profits in the BSI ESOP Trust, which would maintain an employee retirement plan. Employees would receive shares in numbers depending on their time with the company — the longer their tenure, the more shares they would get, and they would accumulate more shares every year.
“We had a very robust retirement plan for employees, but if the ESOP goes as planned and the employee stays up to the retirement age, this will be a more lucrative retirement plan for them,” Pearson says. It takes five years for employees to become fully vested; those who leave early will be entitled to a proportional payout.
Pearson, Bryant and Maldonado are not part of the ESOP but negotiated a price for the company with the ESOP trustee that will be paid over a 10-year period.
Photos provided by Brewing Science Institute.
Bryan Pearson and David Bryant are partners in the Brewing Science Institute in Woodland Park who established an Employee Stock Ownership Plan for their company.
Business: Succession
“We bought some shares to be gifted to the employees to get a little bit of a head start,” Pearson says.
Employees have felt little change so far. “We still manage the day-to-day operations,” he says. “When we transition out, we will turn over operations to a qualified manager, but we will remain on the board of directors.”
Pearson says older employees understood and appreciated the transition.
“Our younger employees are not as convinced that retirement is something they should be thinking about this early in their lives,” he says. Nonetheless only a few employees have left since 2022, and not necessarily because of the new ownership model.
Maloney says hundreds of companies have accessed the resources of the Employee Ownership Office, which provides information on ESOPs and other types of employee ownership structures. Resources include a free introduction to employee ownership course, confidential consulting sessions, links to service providers, information about tax credits and peer networks for collaboration.
“We’ve activated through our Small Business Development Center network to have these resources available throughout the state,” she says.
Jeanne Davant is a senior writer for the SoCo Business Forum & Digest.
Professionals on the Rise Celebrating Achievement of So. Colorado’s Workforce!
Norwood Development Group announced the appointment of Eric Scofield as Senior VP of Community Impact. Scofield brings over 30 years of leadership and development experience in the nonprofit sector, having significantly impacted organizations focused on community enrichment, education and social services. In his new role, he will oversee the strategic direction and operations of philanthropic impact investment of both Norwood Corporate and the Norwood Foundation.
Julissa Soto, CEO of Julissa Latino Health Equity Consulting and Vice Chair of the Colorado Springs Hispanic Chamber Board of Directors, has been named a Finalist for the prestigious Women of Inspiration™ Awards, an honor that recognizes women leaders who inspire, motivate and lead in their respective fields. The Women of Inspiration™ Awards, hosted by the Universal Women’s Network™, will take place in New York City on November 7, 2024.
Aimee Cox was announced as the COS’s new chief housing and homelessness response officer. Cox served the city in various roles from 2002-2017, including as community development manager. She was one of the first architects of the city’s homeless response, and she has a 20-year track record of maximizing existing resources and collaborating with faith leaders, nonprofits, businesses and builders to create safe places for people to go.
Ent Credit Union announced the appointment of Amy Nigrelli as its new chief marketing officer (CMO) in Colorado Springs. Nigrelli brings nearly 20 years of experience as an insights-driven marketing leader and will serve as a member of Ent’s leadership team. She has vast experience building strategies for brand, product marketing, community impact and optimizing operations. Nigrelli previously served as CMO at New Mexico’s largest credit union. Ent also announced that Chris Chippindale has been promoted from senior vice president, Northern Operations, to chief experience officer. In this expanded role, Chippindale, who has extensive experience at Ent and other major financial institutions, will continue to drive Ent’s strategy towards becoming a world-class service organization. He will oversee key member experience divisions, including electronic banking, experience design and digital product.
The Colorado Springs Hispanic Chamber announced that Atrevida Beer Company, a distinguished business member, has been selected as the 2024 honoree for the prestigious “Hispanic Veteran-Owned Business of the Year” award by the United States Hispanic Chamber of Commerce (USHCC). This national recognition celebrates Atrevida Beer Company’s excellence in the brewing industry, its commitment to diversity and innovation and its proud roots as a Hispanic and veteran-owned business.
The Colorado Springs Black Chamber of Commerce announced the significant expansion of their board and committees. Their newest board officers and members are: Donald Deas, Director; Rodney Scott, Director; Jesse Bullock, Director; and Felicia Embry, Secretary.
On the Communications and Public Relations committee: Rodney Scott, Chair, Elizabeth Red Cloud and Nilaja Montgomery
On the Membership committee: Makeshia Patin, Chair, Katrina Nicholson, Monique Phillip and Valerie Bringas Montgomery
On the Programming committee: Donald Deas, Chair, Jaron Looney, Jesse Bullock and Dominique Ross
On the Workforce Development committee: Jesse Bullock, Chair, Juaquin Mobley and Jaron Cook
And on the Black Business Directory committee: Dominique Ross
Colorado Springs Leadership Institute Announces 2024 Award Winners
Susan Loo Pattee, managing partner for UPH Partners and CEO of MossParker, will receive the influential Smith-Tutt Positive Impact Award. Pattee has been deeply involved in the Colorado Springs community for more than 20 years. She is a native of Colorado Springs and taught school at Ivywild Elementary School and has been deeply involved in the Bloom Foundation, a Loo family foundation, which champions ideas and organizations in the Pikes Peak region that need support to bloom. She is currently a managing partner for UPH Partners, the group planning to renovate and revitalize the historic Union Printers Home.
Beth Roalstad, CEO of Homeward Pikes Peak, and Carlos Jimenez, CEO of Peak Education, will each receive the Cathy O. Robbins Award for Excellence in Nonprofit Leadership. Roalstad has led Homeward Pikes Peak since 2017, creating new housing opportunities within the city.
Carlos Jimenez leads Peak Education to provide educational equity to children from all backgrounds. Under his leadership, Peak Education received the True Inspiration Award, a national award from Chick-fil-a, for organizations that focus on closing opportunity gaps for low-income families.
Julissa Soto
Eric Scofield
Amy Nigrelli Chris Chippindale
Aimee Cox
Summation Wealth Group, a leading wealth management firm with Northwestern Mutual, has announced the appointment of Lauren Theken, CFP®, CPWA®, AAMS® as its newest partner.
Theken joined Summation Wealth Group in 2010, and in 2020, she became the first female Certified Financial Planner™ professional in the Northwestern Mutual Colorado Springs Network Office.
The Pikes Peak United Way Board of Directors has announced the selection of Cami Bremer to serve as leader of the regional nonprofit, following a comprehensive national search. Bremer succeeds Cindy Aubrey, who announced in May that she will retire and step down as president and CEO.
Bremer says she sees the CEO role as a natural extension of her ongoing mission to serve the community. “I’ve been around United Way for nearly three decades beginning as a high school student in Georgia, Bremer says. “Over the past, 20 years here in Colorado Springs, I’ve watched our local Pikes Peak United Way build their reputation as so much more than a traditional nonprofit.”
As a county commissioner for the last six years, and the current chair of the El Paso County Board of Commissioners, Bremer will immediately begin a transition plan that will allow her to serve as CEO while also fulfilling her elected duties.
Bremer previously served as the provider and community relations manager at the Penrose Cancer Center and as regional director for the American Heart Association. Her experience also includes earlier roles as the public communication specialist for the City of Colorado Springs and the director of governmental affairs for the Colorado Springs Chamber and EDC.
Finding Solutions to Protect Your Investments & Your Family’s Future.
Professionals on the Rise is The Digest’s newest feature to highlight those people in Southern Colorado who are doing big things. Promotions, new hires and outstanding accomplishments should be recognized. Do that here for the standouts in your organization. Shout it from the rooftops (or at least the laptops).
Email newsdesk@coloradomediagroup.com with details (up to 40 words) and a photo of the esteemed.
Lauren Theken, CFP®, CPWA®, AAMS®
Cami Bremer
Economic Development
Pueblo Chemical Depot Reimagined for More than Storage
BY WAYNE HEILMAN
Alittle more than a year after the last chemical weapon was destroyed near Pueblo, the U.S. Army in July transferred the first parcel of land at its Pueblo Chemical Depot to an agency formed to redevelop the 23,000-acre site east of town.
The Pueblo Depot Activity Development Authority, now called PuebloPlex, took ownership of 5,100 acres of the former depot that is leased to about 25 tenants, ranging from a railroad industry research organization, a test track for a hyperloop transportation system and a small railroad that helps get wind turbine parts ready for transport. Hundreds of individuals, families and businesses also lease former ammunition bunkers, known is igloos, for storage.
The Army is expected to transfer another 1,100 acres later this year to the agency, which also manages an additional 10,000 acres under lease from the Army -- that will be transferred to it -- along with another 7,000 acres that are still part of the depot after environmental cleanup is completed in coming decades. PuebloPlex, envisioned as a sprawling industrial park, covers the depot’s 36 square miles and is located 15 miles from downtown.
“Our intent is to acquire this land as rapidly as possible to develop and sell it, though some might not
be until 2040 or 2050. We have a detailed redevelopment plan that will be updated next year to better reflect market conditions,” says Russell DeSalvo, president and CEO of PuebloPlex. “Our mission is to get this property back on the tax rolls, get people re-employed that now work at the depot and clean up the environmental contamination on the property.”
The depot was built in 1942 to house chemical and other weapons during World War II and through the Cold War, and at its peak in the 1950s employed 8,000 people, making it Pueblo County’s second-largest employer after the CF&I steel mill.
The base now employs 1,200-1,300 people, most of them working at the Pueblo Chemical Agent-Destruction Pilot Plant used from 2016 to last year to destroy more than 2,600 tons of mustard gas that had been stored at the depot for decades. Plant operator Bechtel has already laid off more than 250 people and many of the remaining workers will likely be laid off late next year, when decontamination and demolition of the plant is completed.
Much of the property is contaminated with TNT and TCE (trichloroethylene) in underground plumes of tainted water, as well as old bombs, grenades and other ammunition buried under the prairie that is filled with cane cholla, or walking stick, cactus. DeSalvo
estimates the cost of cleaning up the environmental mess at about $800 million – an expense the Army is supposed to pay from a special base-closing account which Congress funds annually.
PuebloPlex’s largest tenant is MxV, a subsidiary of the Association of American Railroads that tests railroad equipment for member railroads and offers training for firefighters and other first responders in handling hazardous material spills. The organization managed the Transportation Test Center north of the depot for the association and the Federal Railroad Administration until it lost the contract in 2021, when MxV moved to the park.
Moving to PuebloPlex with financial incentives from the Pueblo Economic Development Corp. “provided us the opportunity to relocate our people, our assets worth over $100 million, and our capabilities to minimize the impact on our clients,” Kari Gonzales, MvX president and CEO, explained in an emailed statement. “PuebloPlex allows for unlimited expansion to support both freight and passenger programs.”
MxV employs up to 60 people at PuebloPlex, where it has spent nearly $48 million building facilities at PuebloPlex, including a series of test tracks totaling eight miles on 1,500 acres used to test various train and track components for performance, durability and safety.
The organization, which employs nearly 300 people, also operates its headquarters and laboratory space in the Pueblo Airport Industrial Park
Other entities on the site include a small heavy maintenance facility slated to expand from 12,000 to 300,000 square feet, a 60-foot-thick crash-testing wall and the Security and Emergency Response Training Center, which provides free training for first responders using both classroom instruction and a training ground with an actual derailed train, overturned tanker trailer and other equipment.
The nonprofit is spending another $1.6 million on an addition to the training complex for its Alternative Fuels and Flammable Incident Response and Management course
Submitted photos.
Top left: MxV, a subsidiary of the Association of American Railroads, tests railroad equipment for member railroads.
Top right: PuebloPlex is a sprawling industrial park that covers 36 square miles and is located 15 miles from downtown Pueblo.
Economic Development
that will be completed in November. The course will teach students how to respond to fires involving flammable liquids, alternative fuels and electric vehicles that will include fighting live fires involving electric vehicles and batteries.
South Plains & Lamesa Railroad operates a facility in PuebloPlex that includes 28 miles of track on 46 acres to provide industrial and other switching services and rail car storage and repairs that are used for wind turbine tower components, steel and bulk propane. The company prepares rail cars at PuebloPlex that are used by the CS Wind turbine tower plant in Pueblo to transport tower components to customers by rail.
Omaha Track operates a rail yard in PuebloPlex used to store and process rail ties. The company operates another facility in Pueblo which processes scrap railroad ties and other railway materials into chips for biomass fuel.
“We intend to exploit this rail (industry) cluster to the fullest,” DeSalvo says, stressing the park’s 50 miles of rail lines and connections to both the Union Pacific Railroad and BNSF (formerly Burlington Northern and Santa Fe) Railway networks.
The park also houses a 350foot test track on 43 acres for SwissPod, a startup based in Switzerland that was spun off from the Swiss Federal Institute of Technology and is developing a high-speed electric hyperloop transportation system. CEO and Cofounder Denis Tudor says he hopes to expand the track to 700 feet later this year and begin testing during the first quarter of next year.
Tudor is raising up to $25 million from investors – he met with some in Colorado Springs in July – to complete the one-mile loop track by mid- to late-2025 and has signed a memorandum of understanding to build a hyperloop system in southern India.
PuebloPlex is currently trying to recruit two aerospace
industry companies that the agency cannot identify since it has signed nondisclosure agreements, and DeSalvo says the park is a good location for companies in that industry to do research and testing because of its isolated location. Space launch provider United Launch Alliance, a Centennial-based joint venture of Boeing and Lockheed Martin, also leases space for storage here.
The park also is targeting the manufacturing, warehousing (retailer Target already stores 500 semitrailers of surplus merchandise at the park) and logistics-distribution industries as potential tenants with 2.7 million square feet of warehouses that still need substantial renovation.
Last year, the U.S. Fish and Wildlife Service released nearly two dozen endangered black-footed ferrets on the site to help restore grasslands on the eastern part of the park, which also has plans for open space, wildlife management and recreation.
The Pueblo Depot Activity Development Authority was created by Colorado legislation in 1994, six years after the depot was designated for closure, but the base wasn’t declared surplus property until 2013 and the organization’s redevelopment plans were approved three years later. The PuebloPlex Local Redevelopment Authority has an annual budget of $5 million and employs seven people, including DeSalvo.
The Pueblo Chemical Depot Activity held a deactivation ceremony Sept. 12, marking the end of 80 years of operation in southern Colorado.
Wayne Heilman is a senior writer for the SoCo Business Forum & Digest.
NeuroAlly Family Fund Pioneers Financial Support for Neurodivergent Families
BY LUCY RICHARDSON
NeuroAlly Family Fund is making significant strides in supporting families with neurodivergent members in Colorado Springs and beyond. Founded by Dawn Lissy, who personally experienced the challenges of navigating neurodivergence with her son, Ryan, NeuroAlly aims to fill critical gaps in financial assistance for families facing high costs associated with neurodivergent support, which is rarely covered in full by insurance.
The organization’s primary mission is to provide comprehensive care and development opportunities for neurodivergent individuals, sometimes referred to as “twice exceptional” due to their unique blend of abilities and challenges in the neurotypical world. These individuals can encompass a spectrum of behavioral health conditions such as autism spectrum disorder (ASD), attention-deficit/hyperactive disorder (ADHD), anxiety and depression, among others.
The first support option provided to individuals diagnosed with a spectrum disorder like autism is typically Applied Behavior Analysis (ABA) therapy, which is more likely to be covered by standard insurance. This one-on-one therapeutic design helps children learn self-regulation and social skills through behavior and consequence interactions. It is proven to be helpful with young patients, but it has limitations.
“I can see how ABA therapy makes sense if you’re dealing with a three- or four- or five-year-old, but after that, that doesn’t make sense,” comments Lissy. “That’s not a long-term solution for having healthy, happy, productive adults in society.”
Lissy and the team at NeuroAlly hope to spotlight organizations that provide more apt therapeutic programs and environments for the specific needs of neurodivergent folks, and then connect them with the financial resources they may need to
consistently engage with a support program.
NeuroAlly’s funding efforts have focused on three core pillars: diagnostic testing, classroom coaching and facilitating access to suitable programs. The organization collaborates with entities like Summit PAC in Colorado Springs, specializing in neuroeducational evaluations and diagnostic testing tailored to children and adolescents. Through partnerships like these, NeuroAlly ensures that families can access crucial diagnostic services that might otherwise be financially out of reach.
For classroom coaching, NeuroAlly is developing strategies to support educational plans tailored to neurodivergent students’ needs. This includes collaborating with schools to implement effective teaching methods and accommodations, which proved successful for Ryan during his time at Equinox, a Denver-based wellness center specializing in neurodivergent support.
The third pillar focuses on providing financial assistance to families seeking suitable programs across the country. Many of these programs, while beneficial, can be
prohibitively expensive for families already grappling with significant financial burdens. NeuroAlly steps in to bridge this gap, ensuring that cost does not hinder access to vital support services.
Since its inception, NeuroAlly has operated completely on donor funding while awaiting 501(c)3 nonprofit recognition status, which is expected to arrive soon. The organization’s sustainability relies fully on community support, with opportunities for individuals and businesses to contribute through donations. Their upcoming Gala for Good event, scheduled for Oct. 19 at Opus Creative Studios in downtown Colorado Springs, aims to raise crucial funds through auctions and activities.
Throughout the organization’s first year of operation, Tracy McKenna, executive director of NeuroAlly, notes that the program’s development has not been met with many difficulties thus far.
“However, we have had many opportunities to learn and further our education as we dive into this world of non-profits,” McKenna says. “It has been an honor to do this. We are
looking forward to the next steps and more opportunities to make things better and more available to our neurodivergent community.”
Lissy emphasizes the communal aspect of NeuroAlly’s mission, stressing that no family should feel isolated in their journey with neurodivergence. By fostering awareness, empathy and practical solutions, NeuroAlly aims to empower families and enhance societal understanding of neurodiversity.
Lucy Richardson is a staff writer for the SoCo Business Forum & Digest.
FOR MORE INFORMATION on NeuroAlly’s initiatives, including how to donate or apply for assistance, visit NAFAMILYFUND.ORG
Partnering with Farmers to Develop New Water Supply
BY COLORADO SPRINGS UTILITIES
Long-term water planning is essential when it comes to ensuring our city can continue to thrive. Water projects are costly and can take many years to see to fruition.
In Colorado, which has experienced decades of persistent drought, it’s especially important that water is used judicially. More and more, partnering in shared management of existing water resources is not only wise, but necessary.
Colorado Springs has done a great job of reducing water waste to help stretch existing water supplies. Conservation in our semi-arid climate remains an essential component of future water use for the community. Still, additional resources will be needed to meet anticipated growth and buildout of our city.
One way Colorado Springs Utilities is acquiring new supplies is through water sharing partnerships with farmers in the Lower Arkansas Valley to the east. These partnerships are based on meeting both agriculture and municipal needs. With Springs Utilities’ help to invest in more efficient irrigation, the farmer needs less water to keep up farm productivity, and the city acquires the “saved” water that is no longer needed in the fields.
The goal is to find
collaborative ways to manage a limited resource and meet multiple needs in the Arkansas River Basin. Water is needed for all kinds of purposes – municipal, agricultural, environmental and recreational – and keeping it in our native river basin means Colorado Springs is likely to experience multiple benefits from its use and reuse, whether it’s locally grown produce and hay, the trout caught in nearby streams or the drinking water that flows from residential taps.
Water connects people in many ways. Springs Utilities’ water sharing program is an example of meeting multiple needs. It’s a reciprocal partnership; in years that the city has more than enough water to meet obligations, additional water is prioritized for lease back to agricultural partners in the basin. They use the extra water to farm more land, increase crop yields or store it for future years.
This water sharing program continues to evolve and has emerged as one of the state’s most innovative ways to balance competing needs for water resources, while guarding against the impacts of drought. It works because it emphasizes collaboration, rather than competition, and optimizes stewardship of the Arkansas River Basin’s natural resources.
THERE FOR PRACTICALLY EVERY “EUREKA” MOMENT FOR THE PA ST 100 YEARS.
When you’ve been around for 100 years, you’ve been around for a lot of “eureka!” moments, countless “aha!” moments, and more revelations and realizations than you can remember. From the joyous celebrations to the quiet reflections, we’ve illuminated the path every step of the way. Our commitment extends beyond merely providing electricity; it’s about being there for the milestones, the challenges and the everyday triumphs that make up a century of shared experiences. That’s a Century of Service. And that’s worth celebrating.
Why Chambers of Commerce Still Work Opinion
BY LOLA WOLOCH
Businesspeople often talk about belonging to leads groups, networking groups or chambers of commerce. All of these types of organizations are good for start-ups and growing businesses. Chambers of commerce go further by attracting all sizes of businesses; monitoring and communicating about legislation affecting businesses on local, state and federal levels; and they collaborate for the good of the entire business community.
While the very first chamber of commerce was founded in 1599 in Marseille, France, the first chamber of commerce in the U.S. began in New York in 1768. And, in 1912, the U.S. Chamber was officially founded in Washington, D.C. by President William Howard Taft to counterbalance the labor movement of the time.
While the Southern Colorado Women’s Chamber of Commerce (SCWCC) is not quite that old, we just celebrated our 30th anniversary and are in our 31st year of serving businesswomen and businessmen in the Colorado Springs community. Chambers range from main street chambers to large city and economic development chambers to identitybased chambers (Women’s Chamber, Hispanic Chamber, Black Chamber, Filipino American, etc.). Many of these chambers offer networking events, business education workshops and marketing opportunities. Additionally, some act as a liaison between businesses and government entities with public policy committees.
What sets the SCWCC apart from other identity-based chambers is tailored services that address the needs of all businesses, including large corporations, medium-sized businesses, small businesses,
nonprofits and solopreneurs.
Connecting these groups is what the SCWCC is all about. We also help businesses find financial resources for start-ups and growing businesses at the local, state and federal level.
A perfect example of providing these services is the state tax credits available through Colorado Enterprise Zone — SCWCC is one of few chambers across the state which qualified for this program.
When it comes to networking, we offer members a variety of events monthly. Our luncheons address topics across the business spectrum. Our more informal First Friday Breakfasts offer a friendly, casual way to network and meet SCWCC members. While our Sunset Meet and Greets are hosted by our amazing companies with food, beverages and great prizes.
Beyond our monthly offerings, we also strive to address unique segments within the chamber. The Business Roundtable Series has been growing quickly with women entrepreneurs learning from industry-specific speakers and sharing their challenges and successes with each other.
With one of the only Young Professionals groups in Colorado Springs, this 40-and-under group networks, grows their businesses and helps each other move up the corporate ladder.
Finally, our SCWCC Foundation walks the walk by raising funds to provide community scholarships for women facing barriers to entering higher education or technical education opportunities. Since 2014, the SCWCC Foundation has provided 38 scholarships at Pikes Peak State College and the Karen Possel Women’s
Endowment at the University of Colorado, Colorado Springs in the amount of $86,000 (totaling $115,000 with the state’s COSI match).
This year is no exception, as the Foundation will provide scholarships to PPSC, UCCS and its first vet-tech scholarship in conjunction with North Springs Emergency Referral Center.
Chambers continue to help the community thrive. Curious about the SCWCC? You don’t have to be a member to attend any of our events. If you want to learn more about new programs that the chamber will be
unveiling for 2025, join us at the State of the Chamber/Holiday Luncheon Gala on Dec. 3 at the Doubletree Hotel, Colorado Springs, CO. For more information, visit SCWCC.com
Lola Woloch, is the President & CEO of SCWCC.
Economic Forum
Why Has the U.S. Economic Recovery Been So Strong?
BY DR. BILL CRAIGHEAD
The world economy is now more than four years into its recovery from the widespread curtailment of activity that occurred due to the onset of the Covid-19 pandemic in early 2020.
The United States has been one of the strongest performers. As of the second quarter of 2024, U.S. real (inflation-adjusted) Gross Domestic Product was 9.6% higher than in the fourth quarter of 2019. That is the largest increase among the G-7 group of industrialized economies (US, Canada, France, Germany, Italy, Japan and the United Kingdom). In that group, Canada is the next highest, with a 5.5% increase. Among a broader group of 33 countries classified as “high income” by the World Bank that are included in the Organization for Economic Cooperation and Development’s (OECD) database, the median increase is 5.9%.
Why has the U.S. done so well?
One possible reason is the strong response of fiscal policy – i.e., government spending and taxation. The most important parts of the US fiscal response were the Coronavirus Aid Relief and Economic Security (CARES) Act of March 2020 and the American Rescue Plan Act a year later. Support from Washington helped minimize financial distress for American families and businesses despite the disruptions and high unemployment of that time. This also ensured that Americans came out of the pandemic ready – and able – to spend.
Most countries supported
their economies with government spending, but the degree differed.
The U.S. response was at the high end. According to September 2021 estimates by the International Monetary Fund, the U.S. had the largest fiscal response in terms of additional government spending and foregone tax revenue – 25.5% of GDP – of a group of 21 advanced economies. The median in this group was 9.6%.
Another factor may be how the U.S. handled the labor market. Many countries focused on keeping workers in their existing jobs by subsidizing employers and funding job-sharing arrangements. The original intent of the Paycheck Protection Program under the CARES Act was to incentivize
employee retention, but the criteria for forgiving the loans made to businesses was very relaxed. This meant that the U.S. experienced a higher degree of unemployment and job turnover than many countries.
The greater churning of the U.S. labor market appears to have ultimately been a boon to the economy. Many who left – or lost – their jobs went on to start new businesses. The U.S. saw a surge in business formation, while the euro area did not. In many cases, the U.S. workers who moved found new employment that made better use of their skills, as evidenced by an increase in labor productivity (i.e., output per unit of labor).
Although the pace of price increases has subsided greatly since
its peak in 2022, the high inflation of 2021-22 was one of the biggest negatives of the post-pandemic period. In this, the U.S. was not alone – the cumulative change in U.S. consumer prices between February 2020 and July 2024 was 21.6%. This is only a whisker above the median of 21.1% for the 29 high-income countries reported in the OECD dataset. That is, the inflation experience of the U.S. has been typical even as we’ve enjoyed a much stronger output recovery than most of our peers.
Dr. Bill Craighead is the Director of the UCCS Economic Forum.
COS District 20 Holds 2024 Bond Info Meetings
BY EMILIE HAGOPIAN
Academy District 20 (D20) recently held its first bond information meetings. The district engaged the community in a series of conversations about how bond dollars will be allocated, should the bond pass. The first session took place on Monday, Sept. 9, followed by another session on Tuesday, Sept. 17. These meetings provided a platform for community members to ask questions and learn more about how the bond would impact local schools. It will address various infrastructure needs within the district, with a particular focus on neighborhood schools, the construction of a new Air Academy High School and funding allocations to D20’s charter schools.
Funding for Air Academy High School and Charter Schools
Among the primary issues discussed was the future of Air Academy High School (AAHS), one of the district’s oldest schools. The bond proposal included plans for a complete reconstruction of AAHS to bring the facility up to accommodate the growing student population. The new AAHS campus is projected to open by fall 2028.
Funding for the district’s charter schools was also discussed. D20 made the decision to allocate bond dollars to The Classical Academy and New Summit Charter Academy. This decision to include the charter schools in the bond allocation process was met with both support and scrutiny. Some community members appreciated the inclusive
approach, while others raised questions about whether the funds would be better spent on traditional public schools.
Transportation and Career and Technical Education Programs
Another area of focus was the expansion of the district’s Career and Technical Education (CTE) programs. D20 had already made strides in offering CTE opportunities to students across the district, and the bond issue promises to enhance these programs further. One key aspect is the development of a Center for Excellence in Career and Technical Education, which would provide specialized learning opportunities for high school students.
The community members asked how transportation would be handled for students who wished to participate in CTE programming but remained enrolled at their neighborhood schools. D20 confirmed that transportation would be provided for students traveling to and from the CTE Center.
Allocation of Funds and School-specific Projects
D20 provided a detailed breakdown of projects by school, making it easy for parents to understand how their neighborhood school would benefit from the bond if it passed. Projects ranged from essential infrastructure repairs, such as roof replacements and heating
Education
system upgrades, to more specialized improvements, such as modernizing science labs, building new athletic facilities and expanding classroom space.
Arguments for and Against the Bond
The bond vote attracted both supporters and opponents. Proponents pointed to the need for upgraded facilities and educational programs, especially as the district’s student population continues to grow. Supporters argued that investing in the district’s infrastructure would not only benefit current students, but also ensure the long-term success of the community by attracting new families and businesses to the area.
On the other hand, some critics expressed concerns about the cost of the bond and the impact it might have on property taxes. Others questioned the district’s decision to include charter schools in the funding allocation, suggesting that those dollars should be focused
exclusively on traditional public schools.
What’s Next for D20 and the District’s Pending Bond Issue
D20 will hold one final bond information meeting on Tuesday, Oct. 2 at 6 p.m. at the Education and Administration Center, located at 1110 Chapel Hills Dr. This meeting is open to the public, providing an opportunity for community members to learn more about the bond issue, ask questions and engage in discussion with district leaders.
Emilie Hagopian is a staff writer for the SoCo Business Forum & Digest.
FOR MORE INFORMATION
on the bond issue, including a full list of funded projects and arguments for and against the bond, visit D20’s official website at: ASD20.ORG
Entertainment Business
Complaints Won’t Blur Roth’s Vision
BY KERI KAHN
The legal challenges and noise complaints surrounding the new Ford Amphitheater on the north side of Colorado Springs are not putting a damper on developer JW Roth’s vision to build a network of luxury entertainment venues.
“These concerns are not affecting plans for other venues,” says Chloe Hoeft, vice president of marketing for Roth’s company, VENU. “We are committed to leaning into the research and discussing with our acquisitions and production professionals on further mitigation strategies. We want this venue to be beloved by all. We ask for the community’s patience and grace as further research is gathered and we continue discussions.”
Ford Amphitheater is the beginning of the Colorado native’s plan to place amphitheaters in areas that don’t have much opportunity for luxury open-air music venues. Locations with venues currently in the works include Broken Arrow, Okla.; McKinney, Texas; and El Paso, Texas. VENU also owns Boot Barn Hall and Bourbon Brothers Smokehouse & Tavern in both Colorado Springs and Gainesville, Ga.
The 8,000-seat Colorado Springs amphitheater made its debut on Aug. 9, receiving widespread praise as a world-class venue to attract top artists, serve as an economic driver and tourist attraction and illustrate the Pikes Peak region’s growth and progress. On the flip side, complaints from nearby homeowners of excessive noise indicate there are those who feel the venue is disrupting the quality of life and driving down property values.
Roth’s legal challenges could be ongoing
It was a year ago this month that the Northside Neighbors Association, led by homeowner Michael Kuhn, filed a complaint with the 4th Judicial District Court to stop the amphitheater’s construction due to non-compliance with state noise laws. The court dismissed the case, however, citing that the City Council
was within its legal rights to approve the development plan, which it did in Jan. 2023.
A controversial noise hardship permit was not issued to VENU by the city until August, after both the initial complaint and ensuing appeal were filed. The permit allows the venue to exceed city noise limits in residential areas, and residents believe the city’s authority to grant such a permit should be overruled by the state noise law.
This month, attorneys Ian Speir and Edward Gleason asked the Colorado Court of Appeals to reverse the dismissal and place the case back in district court. On Sept. 12, the court upheld the dismissal of the initial complaint.
“The Court upheld dismissal of our initial complaint, essentially on the narrow ground that suit was filed too early. The Court reasoned that, because there was not yet concert noise or a hardship permit at the time the appeal was filed in January 2024, the controversy was not yet ripe for judicial determination. But the Court acknowledged that facts have since changed and left the door open for refiling the case,” Kuhn says in an email statement. “Northside’s board, in conjunction with legal counsel, is still analyzing the Court’s decision to determine next steps.”
Commitment to improve the experience
Roth addressed the concerned residents at a city council meeting on Sept. 10, bringing along dozens of Ford Amphitheater supporters.
He was met with opposition from homeowners who returned to City Hall a second time in as many weeks to testify about what one neighbor called “noise abuse” and to voice concerns about mental health issues for the people who live nearby, as well as the assumption of diminishing property values.
“I am not here to dismiss folks that might have a negative experience. I am here to address them,” Roth said then. “I am here to say I hear you and that I empathize with you and at the end of the day, I’m going to do the very best I can to make the venue enjoyable for those who are at the concert and for those who are sitting on their back porch.”
Roth promised neighbors three things. First, he is committed to his continuing sound configuration inside the venue, explaining that it takes time to dial in that configuration. Second, VENU intends to examine studies and possible solutions concerning physical mitigation like sound walls. Third, the noise complaints will be taken into
account for future contracts, though some contracts are already in place for 2025.
For many Coloradans, the issues are a flashback to 1988 when Fiddler’s Green Amphitheater first opened in Greenwood Village near the Denver Tech Center. In addition to sound configuration and physical mitigation, Roth says other structures that started popping up around the venue insulated the area where Fiddler’s Green is located. He expects that, as development continues in north Colorado Springs, that too will help absorb sound.
An open invitation to neighbors
VENU is inviting residents to a Neighborhood Open House at the amphitheater on Oct. 5, designed for community engagement and conversation. The gates open at 3 p.m. and the program begins at 3:45. Free parking will be available. To register for the event or submit your questions in advance, please visit: www.showclix.com/event/ neighborhoodopenhouse105
Keri Kahn is a staff writer for the SoCo Business Forum & Digest.
Small Business Spotlight
Home-Grown Mortgage Solutions Financial Continues to Expand
BY PAM BALES
Mortgage Solutions Financial, a fullservice direct and wholesale mortgage lender in Colorado Springs, has relocated its headquarters to a new 80,000-square-foot building at 7450 Campus Drive. The move, which relocates MSF’s downtown and Chapel Hills Mall branches, accommodates its growing team and expanding portfolio. The space underwent $1.9 million in renovations, including the addition of a fitness center to better serve employees.
Founded in 1995 by retired Air Force officer Roy Clennan, Mortgage Solutions Financial offers a comprehensive range of services to help individuals and families procure new homes, refinance existing mortgages and reduce monthly payments. With 44 branches licensed in 45 states, the company offers a full portfolio of FHA, USDA and VA loans.
Over the past 29 years, Mortgage Solutions Financial has grown from two people in an executive suite to a nationwide full-service mortgage banker employing more than 400 people, with more than 215 employees in Colorado Springs. MSF has funded more than 130,000 mortgage loans and received several industry awards, including being named one of the top 35 VA lenders in the country.
“For nearly 30 years, Mortgage Solutions Financial has called southern Colorado home,” Clennan states. “Our new space, in the heart of the Springs, our hometown, ensures our growth doesn’t disrupt our ability to continue to provide superior customer service. At MSF, customers come first. That commitment inspired our investment in this property and our employees.”
As Mortgage Solutions Financial grows, so does its workforce. MSF hires Colorado Springs residents and trains them in-house. Retention is a priority for the company. More than
The Key to Leadership Is Taking Ownership
20 people have been with the company for 20-plus years, 15% of the workforce has been with the company for 10plus years and 45% has been with the company for more than five years.
Mortgage Solutions Financial is now headed by the second generation; Roy’s son, Rob Clennan, assumed its presidency in 2017. He joined the company in November 1996, starting with inside sales. He later advanced to loan officer, branch manager and vice president of sales. Rob holds an executive MBA from the University of Colorado at Denver.
“I’m honored to have taken the reins of the company my father built,” says Rob Clennan. “But I started at the bottom and had all the jobs. It makes a difference in how you appreciate the company.” Rob helped lead the company’s successful transition from Freedom Financial Services to Mortgage Solutions Financial.
“Mortgage Solutions focuses on serving the underserved, especially veterans,” Rob notes. The company now also originates, underwrites and processes, and then funds the loans, and recently launched loan servicing in-house.
Pam Bales is a senior writer for the SoCo Business Forum & Digest.
The Ownership Mindset A Handbook for Transforming Your Life and Leadership
by Kerry Siggins
296 pages • Published October 17, 2023
OBy undertaking this dramatic shift in mentality, from an employee mindset to an ownership mindset, Kerry Siggins pulled herself from a dead-end lifestyle and the depths of substance abuse to become the head of StoneAge Tools, one of the world's leading manufacturers of industrial cleaning equipment. She was also a finalist for Colorado's CEO of the Year. Must Read
wners act and think differently than employees. To an owner, a business is more than a source of income. It's part of their identity. They view its success as their own. It's the conscious development of this mindset in oneself and others — learning to "think like an owner"—that makes the difference between paycheck players and top performers.
Roy Clennan, Founder & CEO
Rob Clennan, President
Finance
What is Asset Location?
BY T.H. WILLIAMS, PHD, CFP®
In financial planning, much emphasis is placed on asset allocation – the distribution of investments across different asset classes to create a diversified portfolio and manage risk. However, understanding asset location and the practice of placing investments in the most tax-efficient accounts is equally important, especially for high-net-worth (HNW) individuals and families. This knowledge can significantly enhance long-term wealth preservation and transfer when combined with estate planning strategies.
Asset Location: Enhancing Tax Efficiency
Strategic asset location, the art of placing investments in taxable, tax-deferred, or tax-exempt accounts, is a powerful tool in your financial planning arsenal. It is not just about
minimizing tax liabilities but about enhancing your portfolio returns.
According to Morningstar, proper asset location can boost your returns by as much as 0.75% annually, leading to substantial compounded growth. You can harness this significant financial advantage with the proper knowledge and planning.
Tax-inefficient assets like bonds or Real Estate Investment Trusts (REITs), which generate ordinary income, are best placed in tax-deferred accounts like Traditional IRAs or 401(k)s. This allows the income to grow without immediate tax implications, with taxes only being due upon withdrawal (Source: BlackRock).
Conversely, more tax-efficient investments, like exchange-traded funds (ETFs) and individual stocks, are suitable for taxable accounts. These investments typically generate longterm capital gains, which are taxed at a lower rate than ordinary income, making them more tax-efficient when held in taxable accounts.
Asset Location: A Critical Component of Estate Planning
Asset location isn’t just about maximizing your current wealth — it is also a key player in your estate planning strategy. For high-networth households, in particular, it's a critical tool for minimizing estate taxes and efficiently transferring wealth. By strategically placing highgrowth assets, such as stocks, in taxadvantaged accounts like Roth IRAs, you can ensure tax-free growth and withdrawals, significantly reducing the overall tax burden on your estate.
Integrating asset location with estate planning is a good idea and a proactive strategy that can significantly impact your wealth preservation. By incorporating estate planning tools such as Spousal Lifetime Access Trusts (SLATs, NORTH Feb/Mar 2024 Issue) and Dynasty Trusts, you can transfer appreciating assets out of the taxable estate, reducing potential estate tax
liability. This approach allows future appreciation of these assets to occur outside the taxable estate, thereby mitigating the impact of estate taxes on heirs. This is especially pertinent given the current $13.61 million lifetime gift and estate tax exemption, which is set to decrease after 2025.
(Sources: KPMG, Davis Polk)
Asset Location in Practice: A Real-World Example
Consider Sarah, a high-net-worth individual nearing retirement with a $10 million portfolio spread across taxable accounts, a Traditional IRA, and a Roth IRA. Her portfolio includes high-growth technology stocks, a direct indexing (NORTH Jun/Jul 2024 Issue) strategy, private capital investments (NORTH Aug/Sep 2024 Issue), and bonds.
Step 1:
Asset Location for Tax Efficiency
Taxable Account: Sarah places her direct indexing strategy (NORTH Jun/Jul 2024 Issue) and municipal bonds here. These investments optimize capital gains and generate tax-exempt income, respectively, generating little to no current tax liability.
Traditional IRA: Bonds and dividend-paying stocks, which generate ordinary income, are held here to defer taxes until retirement, potentially at a lower rate.
Roth IRA: Private capital (NORTH Aug/Sep 2024 Issue) and high-growth technology stocks are placed in the Roth IRA. Withdrawals from this account are tax-free, allowing Sarah to maximize the value of these appreciating assets.
Step 2:
Integrating Asset Location with Estate Planning
Gifting Strategy: Sarah transfers some Roth IRA assets to a SLAT (NORTH Feb/Mar 2024 Issue), removing them from her taxable estate and shielding future growth from estate taxes.
Roth IRA for Heirs: She designates her children as beneficiaries of her Roth IRA, ensuring they can continue to enjoy tax-free growth and withdrawals, preserving wealth for future generations.
Charitable Remainder Trust (CRT): Sarah funds a CRT with appreciated assets from her taxable account. This strategy removes capital gains liability, provides her with income, and reduces her taxable estate, benefiting her chosen charity after her death.
Outcome: By combining strategic asset location with estate planning, Sarah reduces her tax liability, optimizes her after-tax returns, and ensures efficient wealth transfer to her heirs and charitable causes, preserving her legacy.
Final Thoughts
Asset location is a critical yet often overlooked aspect of financial and estate planning, particularly for higher net-worth households. By strategically placing investments in the appropriate accounts and combining these decisions with robust estate planning strategies, you can significantly reduce your tax liabilities, enhance after-tax returns, and ensure that more wealth is preserved for future generations. Whether optimizing your current investment portfolio or planning for the future, a balanced approach to asset location and estate planning is vital to long-term financial success. Please get in touch with T.H. Williams at th.williams@wfa.com with further questions about these strategies.
T.H. Williams, PhD, CFP ® is a private wealth financial advisor with Virtuent Wealth Management Group of Wells Fargo Advisors. th.williams@wfa.com
Bauernfiend Settles in as Air Force Academy’s 22nd Superintendent Higher Education
BY PAM BALES
U.S. Air Force Academy cadets, faculty and staff welcomed their 22nd superintendent, Lt. Gen. Tony Bauernfeind in early August, before the start of the 2024 school year.
Bauernfeind, a 1991 Academy graduate, took the helm from Lt. Gen. Richard M. Clark, who retired June 1 after the Class of ’24 graduation. Bauernfeind will continue the Academy’s mission of developing leaders of character, with an additional focus on creating warfighters in an era of great power competition.
“He has intellectual curiosity, vision and an adherence to principles. Those are things we need as we navigate this transformation of the United States Air Force Academy to develop young leaders,” said Air Force Chief of Staff Gen. David Allvin.
Having served his entire career in the Air Force special operations community, most recently as the U.S. Air Force Special Operations Command top general, Bauernfeind has a unique perspective and decades of expertise in developing lethal warfighters.
“It is an honor to lead the Air Force Academy with its rich history and legacy of developing leaders. I can tell you that my time as a cadet played a pivotal role in laying the foundation for me as a leader for the past 33 years,” Bauernfeind said upon assuming command. “I am excited to return to this extraordinary team that is dedicated to developing our next generation of combat-ready leaders.”
The priorities of his tenure will reflect the U.S. Air Force and U.S. Space Force’s directives in the 2022 National Defense Strategy to ensure the next generation of officers has the foundation and skills to lead the Department of the Air Force in this new direction.
As the Academy’s superintendent, Bauernfeind directs the undergraduate academic program, military and athletic training and character development. The 47-month program of military education and leadership development produces leaders of character immediately ready to lead. The superintendent heads a staff of more than 3,500 military and civilian airmen and guardians. The cadets Bauernfeind leads will earn bachelor of science
degrees and commission as second lieutenants into the U.S. Air Force and U.S. Space Force.
“As a military academy, our priorities are the foundation of everything we will do,” Bauernfeind said. “Every activity, every action and every program we have must support and reflect our priorities. And we will focus on our priorities, which are: We will develop war fighters to win. We will develop leaders of character and quality. And we will develop critical thinkers to adapt.”
Bauernfeind earned his commission from the U.S. Air Force Academy in 1991. After earning his wings in 1992, he has flown more than
U.S. consumers generally believe the economy is performing worse than the numbers show, however some problems and challenges loom, according to Bill Craighead, director of the University of Colorado Colorado Springs Economic Forum.
BY WAYNE HEILMAN
“People say the economy is lousy, but the data tells a different story. I was an economics faculty member during the Great Recession, and I know what the data looks like when the economy is terrible and this isn’t it,” Craighead told about 350 people attending the forum’s 28th Annual Economic Update at the Ent Center for the Arts on Sept. 26. “There is
3,500 hours in the MC-130E, MC130H, MC-130J and MQ-9 aircraft. He has commanded special operations forces at the squadron, group, wing, theater special operations command and major command levels.
Previously, Bauernfeind served as the commander, Air Force Special Operations Command, at Hurlburt Field, Fla. He served in Afghanistan and South Korea during his tenure. He graduated from the Academy as a distinguished graduate, with a bachelor of science in chemistry and holds a master of business administration from Auburn University, Ala. Among several military courses, Bauernfeind completed Joint Forces Staff College in Norfolk, Va., and attended the Center for Creative Leadership in Greensboro, N.C. He has been recognized with many awards including the Defense Distinguished Service Medal, Defense Superior Service Medal with two oak leaf clusters, Legion of Merit with oak leaf cluster, Bronze Star Medal with two oak leaf clusters and Meritorious Service Medal with three oak leaf clusters.
Pam Bales is a senior writer for the SoCo Business Forum & Digest.
a disconnect between how people perceive their own finances and the national economy.”
Much of the concern about the national economy stems from inflation peaking at an annual rate of more than 9% in mid-2022, but the latest measure shows inflation has slowed to an annual rate of 2.5%. Unemployment has crept higher since the Federal Reserve began
increasing its benchmark interest rate more than two years ago (the central bank cut rates in September), but the jobless and unemployment rates remain well below long-term averages. Consumer prices rose faster than wages as the national economy emerged from the COVID-19
Lt. Gen. Tony D. Bauernfeind
Photo by Dirk R. Hobbs
Land Development
COS Urban Renewal Authority Takes Steps to Fill Downtown Gaps
BY WAYNE HEILMAN
The Colorado Springs Urban Renewal Authority on Sept. 25 took the first step to create two new urban renewal areas that could eventually accommodate two hotels, a 12-story office building, up to 4,000 apartments and condominiums, several restaurants and retail space.
Both projects are headed by Colorado Springs-based Norwood Development Group, which owns most of the 85 acres on the southwest side of downtown that would be redeveloped if the authority eventually designates both areas for urban renewal. Once designated, Norwood can use tax revenue generated from redevelopment to help pay for sidewalks, parking, utility upgrades and other public improvements.
The first proposed urban renewal area includes 2.6 acres surrounding the intersection of Cascade and Moreno avenues and would feature a 181-room, seven-story extendedstay hotel developed in partnership with Denver-based Sage Hospitality Group. The site includes parts of four city blocks along Cascade Avenue and Moreno and Sahwatch streets; it is a block from Weidner Field and across the street from Norwood’s Mae on Cascade apartments.
The area also would include property Niebur Development would renovate for restaurant and
entertainment facilities and build a multiuse complex for restaurants, retail and event space. The buildings and land Niebur wants to redevelop are just west of its Trolley Block, which houses Atomic Cowboy, the CO.A.T.I food hall, Denver Biscuit Co., Dos Santos Tacos, Fat Sully’s Pizza, Streetcar 520 and several other restaurants and bars.
The hotel, called the Catbird, would be modeled after a 165-room hotel of the same name Sage operates in Denver’s trendy RiNO (River North) Art District northeast of Coors Field. The hotel’s rooms will be designed to look and feel like furnished downtown apartments, including kitchens, raised beds, abundant storage and other amenities along with an outdoor courtyard, rooftop space and kitchen/ marketplace offering made-to-order breakfasts.
Jeff Finn, a Norwood senior vice president, said the company hopes to break ground on the hotel by the second quarter of 2025 with construction expected to take about two years with the entire project. Estimated to cost more than $100 million, the project will be built out in multiple phases over several years. The urban renewal area could more than double to 5.7 acres if owners of adjacent properties agree to include them in the project.
The second project would include much of the 82 acres already in the six-year-old Museum and Park
pandemic, but wage growth outpaced inflation last year and helped consumers regain some of their lost purchasing power, Craighead says. Wage growth has slowed during the first half of this year as job growth has slowed both locally and nationally, unemployment has moved somewhat higher and job openings have declined a bit, he says.
Urban Renewal Area in southwest downtown, which includes the U.S. Olympic and Paralympic Museum. Little other development has occurred in the area, so Norwood wants to create a new urban renewal area to restart the clock on the 25 years it can use additional taxes generated by the development to fund public improvements.
“A variety of factors, including fluctuating interest rates, escalating construction costs, the (COVID-19) pandemic and others, have delayed the anticipated private investment until now,” the authority said in a memo included in the agenda for the meeting. “Currently, however, several projects representing significant private investment are imminent,” including a 12-story office building, a 213-unit upscale multifamily complex and a 240- to 300-room luxury hotel.
Norwood estimates the area — generally between Interstate 25, Cimarron Street and Cascade and Colorado avenues — could accommodate up to 4,000 residential units and up to two million square feet of office, commercial, retail and hotel development, estimated to cost $1.2 billion. More than $60 million has already been spent on the Park Union bridge, rebuilding Vermijo Avenue and Sierra Madre Street and other public improvements.
Wayne Heilman is a senior writer for the SoCo Business Forum & Digest.
Higher interest rates have hit the real estate market hardest, as well as the sales of related merchandise — furniture, appliances and electronics — but mortgage rates have declined in recent weeks in anticipation of the Fed’s September rate cut. Craighead wishes the Fed had begun cutting rates sooner to avoid a further slowdown in the labor market, since the central bank’s rate hikes and cuts take six months or more to play out in the economy.
Long-term economic growth likely will be significantly impacted by the aging population of both the Colorado Springs area and statewide, says Elizabeth Garner, Colorado’s state demographer and keynote speaker at the event. The fastest growing groups in both the area and state during the next 10 years will be those over 65 years old, which will impact college enrollment, growth in available labor and the housing market.
The number of available workers could shrink as Baby Boomers retire and the number of people moving to the area and the state has slowed. That’s because housing became much less affordable as prices skyrocketed in the wake of the pandemic amid limited construction, Garner says. However, population growth is strongest in both El Paso and Weld counties,” she says, “while it is declining in much of the Denver area and the rest of the state.”
Wayne Heilman is a senior writer for the SoCo Business Forum & Digest.
