The Commons

EDUCATIONAL NON-PROFIT CENTER PAYS RICH DIVIDENDS

An outdoor activity paradise, Durango, Colorado, is an increasingly sought-after tourist destination and retirement locale.  The service and retail sectors are the cornerstone of the local economy and employment pool.  With average local wages 32% lower than the statewide average and a median home price of $357,000, Durango’s 15,000 permanent residents face a tough economic climate.  Local non-profit organizations also struggle in Durango’s economic environment:  rising rents make it increasingly difficult for these outreach organizations to focus on their missions.  This is especially true for space intensive educational organizations that need both classroom and office space.

When the Commons, a 42,693 square foot office building in downtown Durango was put up for sale in late 2006, a Board member of the Southwest Conservation Corps (SCC) called NDC seeking real estate advice and assistance to help them acquire the building.  However, NDC staff recognized an even greater challenge:  identifying, securing and structuring the financing that would work for this project.  SCC joined with the Durango Adult Education Center (DAEC) to form the non-profit Southwest Institute for Education and Conservation (SIEC), which in turn would create a new facility to provide “office space and facilities for educational agencies and non-profit organizations.”  NDC Director Karen Garritson worked with SIEC, devising a financing structure which included a local bank loan, a subsequent USDA Rural Community Development Facilities Loan (an innovative use of that program, which she guided through a complex regulatory decision), and, most critically, an investment through New Markets Tax Credits.

All of these organizations had had difficulties with their previous locations:  inadequate parking, multiple small locations, poor maintenance and substandard management, all of which were diversions from their fundamental missions.  With this new facility, their rents are stable, and they can consolidate administrative functions, saving on staffing, equipment and supplies, and share the cost of classroom space and maintenance of common areas.

With room to spare at the Commons, additional smaller tenants have signed on, strengthening the building’s role as a center for community services.  The organizations housed in the building collectively serve over 3,000 adults and youth per year, approximately 75% of whom are low-income.  With the addition of an on-site child care center, activity for most programs has grown at least 30% in the first year of operation.  Building tenants expect this trend to continue as residents learn more about and begin to take full advantage of the wide range of services offered at the facility.

Improving the quality, quantity and affordability of the office spaces of Commons tenants has already proven effective in enhancing the ability of these organizations to serve their clientele.  The investment in the educational non-profit center ultimately pays its richest dividends to Durango residents.