How Aspen Groves Are Driving Economic Growth in Colorado’s Mountain Communities

Sharing a massive root system, the aspen grove atop Kebler Pass between Crested Butte and Somerset is one of the largest living things on Earth. When its leaves turn from green to gold and red, it’s also a tourism engine.

Andrew Sandstron, marketing director for the Gunnison-Crested Butte Tourism and Prosperity Partnership, says the county’s lodging tax income reflects the trend. “September is second only to July for us and has been consistently for a number of years,” he says.

READ: Top Company 2023 — Tourism & Hospitality

In September 2015, the county’s lodging tax receipts totaled $209,000. That’s roughly doubled to $400,000 in recent years. 

“Historically, we have our shoulder season when kids go back to school, and not until we open the ski resort does it bump up again,” says Sandstrom. “The biggest growth area in the last 10 or 15 years has been that late summer shoulder season. We still see a big drop-off on August 15 when all the kids go back to school, but September pops up again.”

Between annual events like Vinotok and the Mt. Crested Butte Beer and Chili Festival — not to mention uncrowded fly-fishing and mountain biking — the Gunnison-Crested Butte Tourism and Prosperity Partnership has strategically aimed to push some of the area’s peak summer traffic into fall. 

“One of the issues in these mountain communities is the booms and busts of business, where July is slammed and October, there’s nothing, then December is slammed, then April, there’s nothing again,” Sandstrom says. “By building up those shoulders — and that fall shoulder season is our biggest growing one — it helps us level out the booms and busts of our economy and allows our businesses to better stay open and offer jobs year-round. It helps us to smooth out our economy.” 

It’s not just Kebler Pass. The state’s other aspen hotspots also reap economic benefits from the turning leaves. The aspen on Kenosha Pass “are important to the Bailey business economy, and people do count on seeing them,” says Robb Green, president of the Platte Canyon Chamber of Commerce in nearby Bailey. “We always joke that we go from the summertime RV and boat show on U.S. 285 to the leaf peepers. Once the leaves are done, winter’s in. Winters are tougher for businesses up here.” 

Jim Myers, proprietor of Sasquatch Outpost, a tourist attraction in Bailey, says the fall colors drive visitation after the peak summer season. “Things would normally slow down mid-September to mid-October, which is when the leaves are at their height, because the kids are back in school, summer traffic has died down, but we’ve found we definitely have an uptick in that period because of people coming through to go look at the leaves.” 

In a good year, the bump lasts for about two weeks, Myers adds, but Mother Nature doesn’t guarantee anything. “It depends on the year. There are years when we don’t have the leaves. It depends on the rain. There are years where the leaf season almost is nonexistent, because it comes and leaves — no pun intended — very quickly.”

 

Denver-based writer Eric Peterson is the author of Frommer’s Colorado, Frommer’s Montana & Wyoming, Frommer’s Yellowstone & Grand Teton National Parks and the Ramble series of guidebooks, featuring first-person travelogues covering everything from atomic landmarks in New Mexico to celebrity gone wrong in Hollywood. Peterson has also recently written about backpacking in Yosemite, cross-country skiing in Yellowstone and downhill skiing in Colorado for such publications as Denver’s Westword and The New York Daily News. He can be reached at [email protected]

A Burgeoning Van Life: How Colorado Became a Hotspot for Campervan Enthusiasts

Whether by choice or necessity, traveling, sleeping and even living in vans has become part of the fabric of American life. Social media abounds with stories and photos. An internet search reveals scores of van life sites. Many apps offer advice, camping locations and access to other van lifers.

The recreational vehicle industry has enjoyed some very good years, more than partly due to COVID-19. The Recreational Vehicle Industry Association (RVIA) reported that in 2021, manufacturers shipped more than 600,000 RVs of all types. The fastest-growing segment was Class B campervans, increasing 91.5% year-over-year.

READ: Made in Colorado 2022 — Outdoor Edition 

Colorado is a van life hotspot

Colorado’s scenery and recreational choices made it a natural campervan consumer and outfitter hotspot. A 2018 survey of 725 van owners by Outbound Living ranked Colorado No. 2 among van life states, after California.

The RVIA surveyed Class B campervan demographics, which – much like Colorado’s – trend younger:

  • 42% younger families
  • 45% millennials and Gen-Z 
  • Two-thirds male 
  • More than half without children at home 
  • 44% like outdoor sports 
  • 32% fish 
  • 32% like water sports

Campervan buyers’ motivations included “maintaining control over one’s own itinerary, spending time outdoors and visiting a location with natural beauty.”

Younger van lifers may think they’ve discovered a new, different and romantic lifestyle. Instagram and Facebook pages focus on some of this, highlighting remote employment while shifting locations from ocean to mountains to desert. But van life goes way back.

A short history of vans

Accounts of the Romani (“gypsies”) from Medieval times show these nomads traveling throughout Europe in horse-drawn wagons. A 14th-century monk wrote that they “rarely or never stop in one place for more than 30 days,” and were persecuted wherever they went. 

Motorized campervans debuted in America with the 1910 Pierce-Arrow Touring Landau at the Madison Square Garden Auto Show. It included a fold-down bed and sink. “The Vagabonds” — Thomas Edison, Henry Ford, John Burroughs and Harvey Firestone — outfitted a Lincoln truck for annual camping trips between 1913-1924. 

In 1950, Volkswagen began producing the Type 2, a box on the Beetle 2 chassis. People almost immediately saw it could be adapted for camping. By 1956 the VW Westfalia camper had come to America. Underpowered but appealing, it became symbolic of an alternative lifestyle. Its nickname was “hippie bus,” although it attracted plenty of non-hippies. The VW bus was discontinued in 2014. Volkswagen’s all-electric ID.Buzz, will be marketed for the 2024 model year. 

American-made commercial vans had more power and room than the VW and adapted well to camping. With beds, carpet and often stoves and refrigerators, they also acquired fancier accessories like mood lighting and sound systems, luxurious seating and sleeping options, and distinctive paint jobs. 

A happy medium: The class B campervan

“Recreational vehicle” (RV) encompasses converted buses and semi-trailer trucks (Class A) and motorhomes with a bed over the cab and conveniences like built-in showers and toilets (Class C). In between are Class B vans, large enough to accommodate multiple beds and other amenities, but smaller, more efficient and maneuverable.

Class B campervans were developed beginning in the mid-’70s in Canada, by Roadtrek and Pleasure-Way.

According to Phil Ingrassia, president of the Recreational Vehicle Dealers Association (RVDA), “They kept the flame alive by outfitting vans into real RVs, with kitchens, bathrooms and sleeping that were above and beyond what the early van campers could’ve imagined.” 

Mercedes-Benz Sprinters offered more height and a narrower wheelbase, and their “Eurovan” silhouette has become the U.S. standard. Ford’s Transit was similarly accommodating, and RAM (part of Stellantis) modified its existing vans to European-style standard with ProMaster. These three brands dominate the Class B market.

RV industry giants like Winnebago and Airstream now convert far-from-basic campervans based on Sprinters and ProMasters. Scores of smaller van conversion companies also advise and sell van parts and accessories to DIYers, while primarily building and selling completed units or converting van shells that clients bring to them for conversion.

Campervan entrepreneurs

Matt Felser, co-owner of Dave & Matt Vans, and Eric Miller, co-owner of Tourig, are van life poster boys: enthusiasts and Colorado-based van converters who have lived full or part-time in their campervans. 

Felser and partner Dave Ramsay opened a successful van conversion business in Gypsum. After college, Ramsay joined a New York hedge fund; Felser went ski bumming. Ramsay soon quit finance, converted his first van, and started a small van rental company. 

Felser was teaching Spanish in Vail, “exploring my next vehicle to bike and ski outside of school,” he said. In 2016-2017, “The only way to get a campervan was to get a Winnebago or Roadtrek or get a custom van for nearly $100,000. Not doable.” Instead, he bought a used ProMaster and “watched about a thousand YouTube videos, everything from flooring to electrical to even how to use power tools.” When Ramsay finally arrived, he helped finish the job in about four months. 

Driving cross-country in 2018, people’s interest was a revelation, Felser said, and they saw a business concept. Converting used vans,

We sold one, then two, then four … and now have built 350-plus,” Felser said. 

Dave & Matt Vans focuses primarily on RAM ProMasters. As RAM dealers, they have more access to vehicles. ProMasters handle well, they’re reliable and have the most interior space. “We provide everything you need and nothing you don’t,” Felser said of their ability to keep prices lower while offering maximum design flexibility. 

Expanding to a larger facility in Rifle, they want “to be the largest private manufacturer of RVs in the country,” Felser said. 

The high end of van life

Tourig, based in Golden, occupies a higher price and luxury niche. Co-founder and CEO Eric Miller said his job as a traveling sales rep in the outdoor industry inspired the foundation for Tourig. “I was spending a lot of nights in hotels and in tents and thought there’s got to be a more efficient way to do this.” Before becoming a dad in 2009, Eric spent 150 nights a year for eight years in one of two vans he and partner Paul Bulger converted. “It was fun to watch people’s eyes light up when I would pull in and get out,” Miller said. 

Miller and Bulger, an experienced marine outfitter and skillful carpenter, joined up in 2014. “He understood what it was like to travel in a confined space … it’s the best part of what made us what we are today because of his quality and attention to detail,” Miller said.

They built their first van in Nederland.

“All of a sudden the phone rang and somebody said they wanted one, too. Then it rang again and before you knew it, we had people lined up and needed to hire some staff, and off we went,” Miller said.

Year one it was just two men converting two vans. Then it was 10-12 vans. Tourig now converts about 50 per year. “It allows us to really manage our supply chain, keep quality consistent and always elevated.” Prices begin at $225,000.

Tourig is a licensed Sprinter dealer, so it can purchase vans directly and sell used ones. Tourig branched into Ford Transits in 2021 because, unlike Sprinters, Fords can be serviced almost anywhere. Tourig has doubled its space so it can service any campervans, also expanding production capacity. A full van conversion takes Tourig four to 12 weeks including production, quality control and final detail. “Our guys are artisans. They’re craftsmen and it’s never enough, sometimes to our detriment,” Miller said.

“We’re seeing a lot of people in their 60s and 70s who a few years ago would have gone to a Winnebago or Airstream because that’s what you know.” Still, Miller has respect for what more mass-market manufacturers offer. “I think the RV companies do an amazing job of giving people a lot of stuff for a compelling price. What we provide is an experience.” 

Summit Bodyworks, a subset of Transwest Automotive Group, a  Colorado-based dealer for new and used RVs, trucks and trailers, upfits commercial vehicles for its national clientele. Need a bookmobile or bloodmobile? Summit Bodyworks is the place to go. Although Transwest already sold several mass-produced RV brands, Summit jumped into upfitting Class B campervans in 2019, even before COVID juiced the market.

“We upfit all other vehicles, so why not make that bridge? The Class B market is out of control and continues to rise,” said CEO Meredith Lyons. “The world has taken a different look for how to vacation. Once people see that they can sleep in their own sheets and have their own things, they see it’s a nice way to travel.”

Working out of two buildings in Fort Lupton, Lyons’ team of 15, including the eight-employee production crew, turns out seven units a month when enough Ford and Mercedes-Benz chassis are available. “Supply chains are getting better, but we’re a ways from saying, ‘Oh, they’re good,’” she said. Summit has added Freightliner to its Class B chassis mix.

Who are van lifers?

In the RVIA survey, 4% of RVs were campervans; 65% of owners made $65,000+; two-thirds male; 51% were aged 18 to 54; a majority without children at home. Full-time RV residents skewed older, female and less prosperous. Their top choices were trailers, fifth wheels and motorhomes.

“There’s a certain acceleration of the van market because it offers a lot of things for buyers: viability, flexibility and the chance to go places where you couldn’t go and stay if you didn’t have these types of vehicles,” said RVDA’s Ingrassia. Many said “they didn’t even think of an RV until their [travel] options were limited,” by COVID-19.

Living the part-time van life

Travis Berry bought a Sprinter equipped with a bed and a refrigerator. “Pretty spartan version. For my purposes it is perfect. It can get anywhere – small enough and inconspicuous. You can park it anywhere. Has the comforts I need. Kind of a mobile biking, camping, skiing headquarters.” Berry “lusted after one of those old VW campervans for years.” The Sprinter had “safety stuff and four-wheel-drive … not something I need to worry about breaking down on me.”

Future upgrades? “When I’m done working or when I start to slow down and spend more time in it — getting one with more creature comforts,” including a bathroom for his wife.

He’s driven it around the West — Wyoming for the 2017 solar eclipse and on bike trips around Colorado.

He thinks van owners are “a total tribe. I’m floored at the explosion of [campervans]. I wanted one for a long time, and they were sort of rare, but now if you go to the mountains or ski areas or to a trail, they’re all over the place.”

Phil Hayes found a used Sprinter in Omaha. He did some prep work himself, then worked with a Fort Collins outfitter. “We ended up with a fully converted van for about $65,000 to $70,000.” For his family of four, “It’s a little tight. Sometimes we put the kids in a tent,” he said. His Sprinter has a bed platform and a “garage” for storing gear. 

The Razon family “had been wanting to buy and looking to van experiences – probably around 2019 before the whole COVID thing and didn’t pull the trigger,” Beverly Razon said. A road trip in a rented RV persuaded them. “The kids loved it, the dogs loved it.”

They found their 170-inch Sprinter in Kansas and outfitted it in Salt Lake City since the demand for conversions in Colorado was so great. With two pre-teens, they needed four seats, two beds, a kitchen, and space for gear and their aging dog. The Razons have made long hauls in the Sprinter. With fears about flying during the pandemic, it made travel possible. Being able to work on the road was also a game-changer.

The future is just over the next hill

Looking down the road, Ingrassia thinks the future looks bright — and electric.  “There’s a lot of potential for the van market, especially as people take a look at the features these newer vans have. A whole new contingent of people interested in EV vans will be leading.”

 

Tim Jackson is president and CEO of the Colorado Automobile Dealers Association, the voice of the automotive retail industry throughout the state, representing 260 dealers. Learn more at www.colorado.auto  

How the Colorado Chamber of Commerce is Breaking New Ground in Environmental Sustainability

Employers throughout our great state have long been invested in a clean environment for the communities where they operate for the future of Colorado. We’ve worked closely with our members at the Colorado Chamber of Commerce to address environmental policy, and we’ve seen firsthand how committed the business community is in regards to promoting sustainability within their companies and industries.

READ: Becoming a Zero-Emissions State — How Alternative Fuels Are Transforming Transportation in Colorado

From the construction of our buildings to energy infrastructure to sustainable products, it is primarily up to businesses to develop, finance and build the infrastructure of the future to improve our environment. Many employers have developed innovative solutions that not only address current climate concerns but also improve the environment for their communities. We know from experience that any industry can be a critical leader in this space when given the flexibility to do so.

Despite these successes, job creators have experienced a costly and complex regulatory climate in the last few years. A Colorado Chamber of Commerce 2022 survey of businesses statewide revealed that Colorado’s current regulatory climate continues to be a significant challenge for business operations, and environmental regulations were specifically identified as a top concern.

The Colorado Chamber of Commerce believes there is a better way, and that environmental progress and economic growth are not mutually exclusive.

That’s why the Colorado Chamber has launched an Environmental Sustainability and Climate Action Task Force — a key strategic initiative in supporting a cleaner environment while maintaining a competitive business climate in Colorado. Our long history of constructive collaboration among employers, state leaders, regulators and the public means that we are well suited to bring business leaders to the table and develop responsible, balanced environmental policies and regulations that are predictable and avoid a one-size-fits-all approach for businesses.

The task force brings together 20 different companies and industry groups that are committed to taking sustainability initiatives to the next level, representing the transportation, energy, agriculture and manufacturing industries, and more. Participating companies include Molson Coors, EVRAZ Pueblo, the American Council of Engineering Companies of Colorado, Chevron, United Airlines and Tri-State Generation – the full list of task force members can be found on our website. We will expand on the progress that’s already been made through diverse, cross-industry collaboration to find creative ways to achieve common goals.

To help us navigate the process, we’ve commissioned the Keystone Policy Center to provide expert facilitation to the task force. Keystone has a strong reputation of bringing together stakeholders with diverse perspectives through strategic collaboration to address pressing issues with lasting solutions. The non-profit research organization will assist with task force design, goals and objectives, strategic framework, facilitation of task force meetings and documentation of outcomes. Our first task force meeting begins this month and will continue through the end of the year.

READ: Understanding ESG & Colorado’s Energy Transformation

Our end goal is to develop long- and short-term policies that allow businesses to effectively meet environmental sustainability expectations, partnering with legislators and state agencies on a balanced approach for the domestic production of resources. We will also educate policymakers and regulators on the innovative efforts employers have undertaken through technological investments, the sharing of data, and the development of best practices.

Together with Keystone, the task force will develop a policy report at the end of 2023 with potential legislative recommendations and other collective actions that can be taken to reach environmental goals and objectives.

We are very excited to break new ground in environmental collaboration and lead this coordinated effort to tackle climate action and sustainability while preserving a healthy economy for Colorado.

 

Loren FurmanLoren Furman is president and CEO of the Colorado Chamber of Commerce. The Colorado Chamber champions free enterprise, a healthy business environment and economic prosperity for all Coloradans. It is the only business association that works to improve our economic climate for all sizes of business from a statewide, multi-industry perspective.

Understanding Colorado’s Environmental Waste Reality

Colorado’s renewable energy frenzy has been met with an array of positive news. It’s viewed as clean, modern, and the best alternative to break America’s addiction to fossil fuels. But as facts about recycling the first generation of solar and wind-farm materials emerge, the long-held perception of renewables as a panacea becomes unsustainable.

READ: Understanding ESG & Colorado’s Energy Transformation

The International Renewable Energy Agency (IRENA) projects that “large amounts of annual waste are anticipated by the early 2030s” as the solar boom progresses. According to IRENA, the amount of solar panel waste could total 78 million tons annually by 2050.

A similar concern exists in the wind industry. Thousands of tons of windmill blades and giant wind towers, rising as high as 500 feet, are currently disposed of in landfills, largely due to a lack of consistent state regulations governing the retirement and disposal of wind farms. The thousands of colossal concrete pads that serve as the base for each wind tower are also simply left in place in perpetuity. The turbine blades are built with a planned life of 20 to 25 years and contain chemicals that can become hazardous after burial in a landfill, yet the government has not caught on. While technologies exist to recycle the blades, the wind industry has been slow to adopt them due to the high cost.

Solar panels also possess a similarly limited life cycle, and, like lithium-ion and other batteries, contain chemicals and metals, such as lead, that create environmental hazards as they degrade. Like the wind industry, the panels can be recycled, but the high cost has prevented large-scale adoption, despite heavy subsidization by the federal and state governments. The National Renewable Energy Laboratory estimates that less than 10% of the country’s decommissioned panels are recycled, mainly due to cost. The price to recycle a single panel is about $15 to $45 for a silicon PV module in the US, compared to only $1 to $5 to dump it in a landfill.

Should Coloradans worry? As primarily a headwater state, meaning most of our water begins here and flows out to the Rocky Mountains, toxic leakage into our rivers is particularly concerning. It was only seven years ago when three million gallons of contaminated water turned the Animas River orange.

READ: Water Pipeline Back in Play? — The Future of Colorado’s Water Distribution

Environmental and safety concerns are not new in the energy landscape. For example, determining the appropriate distance between oil and gas operations, often referred to as setbacks, used to be a major contention in Colorado. And it doesn’t stop there. The impact on water, air, wildlife and the landscape have all been debated and are now all highly regulated here. But it took years of contentious community discussions, public hearings, legislative compromise and collaboration. Today, operators seem to have struck the right balance of production and protection.

Despite the known hazardous magnitude, the federal and many state governments in the U.S. have not enacted consistent regulations governing the disposal of the massive waste created by these new industries. If the Biden administration’s envisioned energy transition is to progress as planned, a resolution to this toxic issue is mandatory. While most support the expansion of new energy sources, it makes little sense to do it at such a cost to the environment it is supposed to improve.

READ: Biden is Right About One Thing — Oil and Natural Gas Aren’t Going Anywhere

It comes down to fairness. Why should some industries like oil, gas, coal or nuclear be held to one standard while others like solar and wind are held to another?

There’s no doubt that an energy transformation is underway. After all, energy is the foundation of everything, and finding ways to produce it more efficiently and responsibly is a no-brainer. Everything evolves and energy is no different. But all sources have benefits and drawbacks. Perfect energy does not exist, and the pitfalls must be addressed and remedied. As an environmental leader, this is Colorado’s opportunity to shine. The next step is to proceed responsibly, fairly and transparently.

Open for Business — Four Priorities for Maintaining Colorado’s Economic Competitiveness

It’s easy to forget that Colorado businesses aren’t buildings, they are real people — employees, business owners, suppliers, investors — that make up the foundation of Colorado’s economic success. It’s also easy to forget that the economic concerns affecting individuals and families, like inflation, high interest rates, supply chain issues and more, also impact business. Additionally, recent surveys have reported that business owners share some apprehensive feelings toward Colorado’s economic competitiveness.

The most recent Leeds Business Confidence Index from the University of Colorado reported that business leaders show more pessimism today than this time last year when it comes to the state and national economies.

READ: Our Economy in 2023 — What to Expect

When asking large employers in Colorado for their priorities that state leaders should consider for building a stronger economic outlook, these are the items that rose to the top:  

Prioritize a competitive tax and regulatory agenda.

Colorado’s economy has been among the strongest in the country and consistently ranks high in comparison to other states. However, new regulations, taxes and fees at the state and local levels have contributed to a higher cost of doing business in Colorado. 

READ: How Will FTC’s Proposed Ban on Non-Compete Clauses Impact Colorado Law?

Public policy has a profound impact on these costs. One recent example is the enacted Family and Medical Leave Insurance Program (FAMLI). On January 1, Colorado employees started seeing paycheck deductions for FAMLI and businesses are also footing the cost. While the numbers may seem innocuous, adding yet another cost to employers will not go without effect. This payroll impact is one of many that increases the cost of doing business in Colorado and speeds up a costly trend that, if gone unchecked, could cause employers to find more affordable places of operating.

Modernize training pipelines and ensure a cohesive partnership between academia and business.

A trend currently being experienced across nearly all industries in Colorado is the number of businesses facing workforce shortages. For companies looking to retain talent and attract a strong workforce pipeline, this is an issue that needs to be addressed.

Building a “tomorrow-ready” workforce requires modernizing training pipelines, embracing technology and strengthening post-secondary education options to allow Coloradans to be trained to fill critical job openings. 

Partnerships between the private sector, traditional education systems and talent producers are critical to meeting the current and future talent demand and providing relevancy. If Colorado leaders want to create a strong future, they must continue to focus on building strong training pipelines. 

READ: 6 Ways to Find New Employees During the “Great Resignation”

Invest in future-forward infrastructure.

A future-forward infrastructure system is critical to unleashing Colorado’s long-term competitive potential. Colorado must focus on issues such as sustainability of our natural resources — including water quality and quantity, transportation mobility, aviation, energy, broadband and 5G access. These essential pieces of modern infrastructure are the backbone supporting a strong economy, business growth and quality of life.

Lead with purpose: Support communities and people in need

Many companies and nonprofit organizations that serve our Colorado communities take ongoing, meaningful action to support individuals in need and improve their quality of life. The shared passion that surrounds philanthropic giving, community engagement and a commitment to environmental and social responsibility has a profound impact on the lives of thousands of Coloradans. This work needs to continue.

Some of our biggest state challenges — affordability, community safety, health and wellbeing — can only be confronted when leaders from many sectors work together to find and implement solutions. 

READ: Maximize Your Charitable Giving Donations —Aligning With Your Budget and Passions

Colorado has a strong foundation for growth. We are a hub for countless industries, a home for world-class higher education and medical institutions and, most importantly, we share a community spirit grounded in growth and helping those in need. Looking ahead, we can secure our footing in a global economy by championing Colorado’s economic competitiveness through the priorities outlined here, and doing so will ensure our state remains a thriving place to live, work, play and innovate.

 

Debbie Brown is the President of the Colorado Business Roundtable.

Guest Column — Closing the Racial Wealth Gap With Education and Financial Planning

As a financial advisor, I have witnessed the profound and long-lasting generational impacts of the racial wealth gap in our society, which exists due to historical factors that continue to impact the wealth, earning potential and distribution of assets in our communities. According to the Bureau of Labor Statistics, the median weekly earnings in 2022 for Black Americans was $896 and Hispanic Americans was $837, compared to $1,101 for white Americans.

READ — Do Hispanics Bear the Brunt of the Energy Crisis?

Historical factors continue to impact today’s Black communities, and because wealth and overall livelihood are so closely linked, it is important to consider the unique financial planning needs this gap has created for Black individuals — and why building generational wealth is so important.

For too long, minorities have been left behind when it comes to creating wealth, often due to systemic barriers that make it harder to access the resources and opportunities required to build intergenerational wealth.  

To address this issue, we must prioritize and amplify effective strategies including education, financial literacy and access to financial planning to ensure that everyone has an equal chance to build wealth and create a better future.

Keys To Building Generational Wealth

Studies consistently show that education is strongly correlated with higher income and greater financial stability. For example, according to the Bureau of Labor Statistics, the median weekly earnings of someone with a bachelor’s degree are over 60% higher than the median earnings of someone with a high school diploma. In addition to higher wages, education also provides individuals with valuable skills, knowledge and networks that can help them navigate the complex world of finance and investment. 

Achieving financial equality requires that we invest in education at all levels. This includes providing adequate funding for schools and expanding access to higher education through scholarships, grants and other forms of financial support. Innovative programs that help students from disadvantaged backgrounds succeed in furthering their education and skill set also need support and funding to continue their important work. 

Like education, financial planning is foundational to creating generational wealth however, there is a lack of trust in financial institutions given the history of discriminatory practices that have targeted Black Americans. 

READ — The Importance of Filling Our Community Pipelines with a Financially Literate Workforce 

For instance, Black Americans have historically had less access to essential financial education and resources on important areas such as life insurance, banking, homeownership, building credit and financial coaching. However, it’s important to recognize that not all financial institutions are the same. 

While there is much to do to address the broader systemic issues, each day is an opportunity to bolster individual situations. It’s time to lean into new resources and build trust with financial experts who understand your unique needs and have experience working with Black Americans. This is a person-to-person relationship that requires open communication, transparency, and willingness to work and learn together to improve financial literacy and build wealth and economic security.

The racial wealth gap is a significant challenge for Black Americans, but it’s not insurmountable.  By proactively using the financial tools and resources to learn what you don’t know and relying on an experienced and trusted advisor, individuals and families can take steps to change the trajectory of the racial wealth gap toward creating a more equitable and prosperous future.

 

Unknown3A Denver-based financial advisor, Derek Ansah is a Certified Financial Planner and serves a diverse group of clients at Northwestern Mutual in Denver, Colorado.

Biden is Right About One Thing — Oil and Natural Gas Aren’t Going Anywhere

A funny thing happened when President Biden went off script during his recent State of the Union speech and began jousting with a raucous group of Republican lawmakers.

He told the truth.

Now, that’s not to say the rest of what he said was lies, but in this unscripted moment, which began just as he was talking about climate change, he injected a moment of reality into his speech.

“We’re still going to need oil and gas for a while,” he said, probably to the chagrin of his speech writers.

READ — Understanding ESG & Colorado’s Energy Transformation

He then quickly added, in another off-the-cuff remark, that we’re going to need oil for “at least a decade.” It drew laughs from Republicans because, as conservative Jonah Goldberg tweeted, that’s like saying we’ll need water and oxygen for “at least a decade.”

Even though President Biden has continuously vilified this industry and made it harder to develop our natural resources, beginning with campaign pledges to shut down all drilling to his first few days in office when he shut down the Keystone pipeline and froze federal leasing, his unscripted moment brought a much-needed dose of reality to our national conversation on energy.

We need oil and natural gas to survive. And will, for years to come. Not just a decade.

The federal government, through its Energy Information Administration, projects that by 2050, we will need more oil and natural gas than today, not less. (To be fair, they also expect an even greater share of renewables in our energy mix.)

The global population is growing, and access to efficient, reliable and affordable energy is a human right. We will need all forms of energy to thrive, and attacking domestic production, shutting down infrastructure and making it harder to develop here only means we’ll rely on foreign countries for our energy, which is not an environmental solution and makes our country less secure.

READ — Do Hispanics Bear the Brunt of the Energy Crisis?

Today, oil and natural gas are the primary sources of energy for the global economy, supplying roughly 70 percent of the total global energy demand. In 2021, 81 percent of our primary energy in the United States came from fossil fuels. We will continue to need oil and natural gas for decades to come for many reasons. It is our challenge to produce it cleaner, better and safer here than anywhere on the globe.

But we need realistic conversations about where our energy comes from, and the trade-offs and benefits of all energy sources.

In Colorado, the governor recently renewed his pledge to move our state to 100 percent renewable energy by 2040. But just a few days prior, for nearly three days when the temperature hovered around 0, renewables provided almost no power to our electrical grid as the wind wasn’t blowing and the sun wasn’t shining. Natural gas and coal were the workforces that kept us safe and warm during that cold snap.

Knowing that we need these resources, we need to do a better job of sharing the positive environmental changes we’ve seen in recent years: The new technologies, the lowering of emissions and the promise of innovation and ingenuity.  Our elected leaders need to embrace that as well.

If you’re concerned about climate change, it’s important to note that today we’re powering our electric grid with more natural gas, wind, and solar energy than ever before. The environmental benefits have been, and will continue to be, profound because natural gas, as an energy source, has a low carbon dioxide emissions profile.

But that’s just part of the story. Numerous emissions reductions beyond CO2 have occurred as a result of this trend, with sulfur dioxide down 88 percent and ground-level ozone down 22 percent. The six most common pollutants (PM2.5 and PM10, SO2, NOx, VOCs, CO and Pb) are collectively down 73 percent. That’s a tremendous success story for our environment and our air quality.

In Colorado, we also can be proud that methane emissions from oil and natural gas production are decreasing, and our industry’s volatile organic compound (VOC) emissions have dropped nearly 60 percent since 2011. Technology improvements and regulations that reduce the chance for methane and VOCs to escape into our atmosphere are working.

Our industry continues to make tremendous progress in both the efficiency of energy consumption and in reducing greenhouse gases. However, more work must be done.

We can have the economy we desire and the environment we need, but we need to have realistic conversations about climate, where our energy comes from and what’s feasible. We also need to support policies and infrastructure that allows for continued domestic production, especially here in Colorado where we’re producing some of the cleanest molecules of energy on the planet.

Clean, affordable energy is the key to our world’s future, and oil and natural gas have an important role to play.

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Dan Haley is president and CEO of the Colorado Oil & Gas Association.

 

New Limits on Noncompete Agreements: What Colorado Employers Need to Know

When Colorado enacted its new noncompete agreements statute in August 2022, many employers expressed apprehension about what it would mean for their company and how to comply. Not only is the new law a dramatic departure from the old, but there are also serious financial penalties for violations.

Even companies based outside of Colorado must comply with the new law for any Colorado-based employees. Still, many businesses have yet to take the necessary steps to ensure compliance with the statute or are unaware of the nuances.

Here’s what employers need to know and do now.

READ — How Will FTC’s Proposed Ban on Non-Compete Clauses Impact Colorado Law?

What are Valid Noncompete Agreements?

Noncompete agreements will be considered valid and enforceable only if they are:

  1. Entered into with a “highly compensated worker” (i.e., a worker making at least $112,500 in 2023; but note that this dollar amount will change annually). Employees earning less than that amount cannot be bound by a non-compete
  2. designed to protect trade secrets; and
  3. no broader than necessary to protect the employer’s legitimate interest in protecting trade secrets.

It’s important to note that employees must be highly compensated both at the time they sign noncompete agreements and when an employer attempts to enforce the noncompete.

What is a Valid Non-Solicitation Agreement?

Non-solicitation agreements (agreements not to solicit an employer’s customers) will be considered valid and enforceable only if they are:

  1. Entered into with workers making at least sixty percent of the threshold amount for highly compensated workers (i.e., a worker making at least $67,500 in 2023; an amount will also change annually). Employees earning less than that amount cannot be bound by a non-solicitation; and
  2. no broader than necessary to protect the employer’s legitimate interest in protecting trade secrets.

READ — What Is Trade Secret Misappropriation: Is Your Business at Risk?

What About Other Restrictive Covenants?

The following types of restrictive covenants remain legal under the Act:

  1. Provisions providing for an employer’s recovery of the expense of education and training. For example, an accounting firm that pays for an employee’s CPA certification would be eligible to recoup those costs.

  2. Reasonable confidentiality provisions, as long as they do not prevent the disclosure of information that: (a) arises from the worker’s general training, knowledge, skill, or experience, whether gained on the job or otherwise; (b) is readily ascertainable to the public; or (c) that a worker otherwise has a right to disclose as legally protected conduct.

  3. Covenants for the purchase and sale of a business or the assets of a business.

  4. Provisions requiring the repayment of a scholarship.

What Are the Notice Requirements?

Even if the agreements are drafted appropriately, they are only enforceable if the employer provides adequate notice to employees and prospective employees. The notice requirement is unique to Colorado and very specific, so employers should be quite careful to comply.

Colorado companies must provide current employees with at least fourteen days’ notice of any noncompete or non-solicit agreements. In addition, employers must give prospective workers notice before they accept an offer of employment.

The notice must be contained in a separate document (not as part of the offer letter) and written in “clear and conspicuous language” so that a layperson can readily understand it. In addition, the employee or prospective employee must sign the notice.

Unfortunately, many employers don’t realize they can be penalized for even presenting prospective employees with invalid noncompete agreements.

READ — Changes To Non-Compete Rules Also Mean Paying More Attention To Your Trade Secrets

How Can Companies Protect Themselves?

Employers should think carefully about whether and what type of restrictive covenants they genuinely need to protect their business, given the potential legal pitfalls.

Employers should consider how much protection they can achieve from a well-drafted confidentiality agreement preventing departing employees from misappropriation of proprietary information or trade secrets.  If a business’s biggest concern is that a departing employee will potentially poach customers or clients, a non-solicitation agreement is a great option. Non-solicitation agreements have a lower salary threshold ($67,500 annually) and may provide the desired protection without the need for a blanket non-compete.

It is more important than ever to ensure that all agreements with employees comply with the new law and are properly executed, as failure to adhere could have serious legal consequences. Consulting with a knowledgeable legal representative will help employers navigate the complexities of these new regulations, protect their best interests, and provide employees with clear expectations.

Christine Lamb HeadshotChristine Lamb has nearly three decades of experience counseling executives and companies of all sizes on human resources and personnel issues and defending businesses in employment lawsuits.

4 Biggest Risks of Real Estate Investing in 2023 and How to Minimize Them

Real estate investing is one of the surest paths to building wealth, but it’s not without certain risks. And in 2023’s unsettled and hazy market, those risks could sneak up on you. 

With demand tanking, prices flattening, mortgage rates at historic highs, inventory increasing, and general inflation driving up costs across the board, this is a completely different market than the one that investors were operating in for the past decade. And the only thing the experts agree on is that no one knows where it’s going from here. 

READ — How Do Interest Rates Impact Real Estate Investing?

So what should a real estate investor do in 2023? There’s no easy answer to that question, but we can tell you how to tackle and minimize some of the biggest risks of real estate investing in 2023. 

If you’re flipping houses, you might want to consider becoming a landlord

Flipping houses has been extremely profitable for the past decade, but 2023 should see the market tightening up quite a bit. With demand sagging, rehab costs going up, and days on market doubling or even tripling, house-flippers have a little tougher path to profitability than before.

So why not try the landlord route? With mortgage rates at historic highs, many would-be home buyers are opting to rent. Going from “fix and flip” to “fix and hold” could be an easy way to wait out the market — while collecting some very nice rental income. Who knows, you might even prefer being a landlord to flipping houses.

Buying will be easy — maybe too easy

After years of maxed-out demand and escalating prices, the market has cooled. Put off by high mortgage rates, individual buyers are sitting out, and even iBuyers, stung by 2022’s flattened price curve, have largely paused their acquisitions. Inventory is inching up, projected to increase in 2023.

For individual investors, that means it’s going to be a lot easier to buy in the coming year. There are more properties to choose from, since competition is at a low ebb. For many investors, especially ones sitting on a lot of cash, this could present an irresistible opportunity to go on a buying spree.

But be careful! After so many years of steep competition, it’s easy to get caught up in the moment and snap up a property (or five) without doing your due diligence. Although it definitely makes sense to take advantage of a slow market, stay cautious, stick to your principles, keep an eye on your investment goals and resist the temptation to buy just because you can.

READ — Start Investing in Real Estate: 6 Tips for Millennials

Don’t forget to keep close track of your finances

No matter how solid your financial situation is, now is the time to keep a very close eye on your cash flow and your obligations. You’ve probably heard the expression, “death by a thousand cuts.” In 2023, you could very easily go broke by a thousand cuts. 

Why? Well, the simple answer is that some investors are getting squeezed on both sides. Prices have flattened or declined in many markets. Interest rates have skyrocketed. The price of materials and contractors have increased. Rental rates have sagged, meaning that your income projections might fall short. Homes are sitting on the market longer, leading to carrying costs piling up, which can eat into your profit margins. Not to mention the historic inflation across the rest of the economy.

All of these little cost increases can add up faster than you think and burn through your cash reserves. Avoid being taken by surprise by keeping a close eye on your cash flow and constantly updating your projections with the latest data.

The market will evolve (again)

The pandemic seriously disrupted the real estate market almost overnight, as many fled large urban markets to settle in the suburbs and more rural areas. This deflated several booming city markets and sent prices rising in formerly sleepy regional markets. Investors followed, and some of the top house-flipping markets in 2022 were smaller cities like Greensboro, North Carolina, Scranton, Pennsylvania, and Buffalo, New York.

However, that trend seems to be on the verge of reversing in 2023. With the pandemic waning, many big employers are looking at ending or curtailing work-from-home policies, which would lead to a huge migration back to cities. That could give investors a bit of whiplash just when they thought they were settling into a new normal.

Avoid getting caught on the wrong side of the curve by keeping a close eye on movements in smaller, regional markets, as well as on big-picture employment issues. Then, allocate your money accordingly. And as you shift your investments between markets, don’t overlook new money-saving measures, such as buying or selling with low-cost real estate agents. Those commission savings add up fast!

 

Screen Shot 2021 12 28 At 113128 AmLuke Babich is the Co-Founder of Clever Real Estate, a real estate education platform committed to helping home buyers, sellers and investors make smarter financial decisions. Luke is a licensed real estate agent in the State of Missouri and his research and insights have been featured on BiggerPockets, Inman, the LA Times, and more. 

Mark Smith Inducted Into 2023 Colorado Business Hall of Fame

Slifer Smith & Frampton together with East West Partners are proud to announce that Mark Smith has been inducted into the 2023 Class of the Colorado Business Hall of Fame which honors outstanding individuals who have made legendary contributions to the free enterprise system and provide inspiration for the next generation.

“I couldn’t be more honored to receive this prestigious award alongside such a distinguished group of friends and colleagues,” said Mark Smith. “It has been my life’s work and greatest pleasure to help shape the future of some of Colorado’s most iconic places and I appreciate this recognition tremendously.”

The 2023 laureates were inducted on February 6th, at the 34th Colorado Business Hall of Fame Dinner at the Hyatt Regency Denver at Colorado Convention Center. Laureates are selected for their enduring and innovative professional contributions to Colorado, inspirational and ethical acumen, and philanthropic endeavors. This annual event, hosted by Junior Achievement – Rocky Mountain, Inc. and the Denver Metro Chamber of Commerce honored five of Colorado’s most distinguished and influential business leaders by recognizing their professional accomplishments and long-term impact on the state’s economy, and philanthropic contributions to the community.

“This tremendous honor recognizes Colorado’s most verdant and longstanding business leaders that inspire change through their professional and philanthropic work, which exemplifies the incomparable Mark Smith who I have had the pleasure of working with for more than three decades,” said Harry Frampton, Founder & Principal of East West Partners and Principal at Slifer Smith & Frampton. “I have witnessed the innumerable professional accomplishments, and his extensive philanthropic work that has truly impacted Coloradoans across the state from Denver to the Vail Valley. He is tirelessly committed to making Colorado a better place for all.”

This well-deserved honor comes after 50 years of experience in real estate development, sales and marketing. Smith is a Founding Principal and Managing Partner of Slifer Smith & Frampton and was a founding principal of both East West Partners and Union Station Neighborhood Company.

Commonly described as a visionary, Smith started his development career with the creation of Beaver Creek Village in the Vail Valley and has played a role in numerous iconic projects throughout the mountain communities including Vail, Beaver Creek, Bachelor Gulch, Breckenridge and Keystone resorts. He has also grown Slifer Smith & Frampton into the leading independent brokerage firm in Colorado with 270+ brokers and 120+ team members.  It now has 34 offices located throughout Boulder, Denver, the Vail Valley, Summit County and the Roaring Fork Valley with $10B in sales volume since 2020.

READ — New Approaches to Affordable Housing in Resort Communities

After developing in the mountains of Colorado for 13 years, Smith brought his East West Partners expertise to Downtown Denver in 1999. Beginning with Riverfront Park and eventually taking on Union Station, Smith and East West Partners helped reshape Denver and the metro area, having developed $1.4 billion of real estate comprised of 23 total projects, 1,429 residences, 745,000 square feet of commercial space and 150,000 square feet of retail. His leadership and vision in the master planning and development of both Riverfront Park and Union Station communities was acknowledged by receiving the Urban Land Institute Global Award for Excellence.

Despite this success, he is most proud of the significant contributions he has made to his community by being the founder of highly impactful organizations, including Youth Foundation (now Youth Power 365), Platte Forum, and Riverfront Park Community Foundation. Mr. Smith’s community involvement extends to the boardroom as well, with current board affiliations with Colorado Forum, First Western Financial, Forbes Global Properties, Riverfront Park Community Foundation, Slifer Smith & Frampton Foundation, and Chief Executives Organization. He has served as chairman of the Beaver Creek Metropolitan District, Bravo Colorado Vail Valley Music Festival, Central Platte Valley Metropolitan District, and Downtown Denver Youth Foundation.

Smith also served as a director of numerous youth and education-focused organizations, including Denver Public Schools Foundation, YPO Rocky Mountain Chapter, Teach for America Colorado, Colorado Succeeds, Mayor’s Leadership Team on Early Education, Colorado Uplift, and the Charter Fund, among many others.

At Slifer Smith & Frampton we’ve always had a shared vision: to cultivate careers and communities that thrive together,” said Jason Cole, CEO of Slifer Smith & Frampton. “We are committed to investing in people, places, and local business in a way that builds us all up for the greatest good of our communities. These were the founding principles of our partners and we are thrilled to see Mark join Harry Frampton (2008) and Rod and Beth Slifer (2013) in the Colorado Business Hall of Fame.”