Top 3 Business Stories from 2008

1. Gas prices rise and fall in 2008

The Montrose Daily Press produced a series in June highlighting the crunch at the pump and the effect it was having on travel/tourism, law enforcement, consumers, nonprofits/charities, and commuters.

Gas prices started the year around $2.25 and blew up to more than $4 during the summer months and fell back down to as low as $1.51 in one year that gave both frustration and relief to consumers.

Olathe was the first to see $4-plus gas as it topped off at $4.08 a gallon in June. Putting a dent in your wallet was a thing of the past when it came to filling up your vehicle with gas — at least for the time being.

Wave Dreher, AAA Colorado representative, said the drop in gas prices has been the biggest in the company’s 50-plus year history of tracking prices. She said people can credit the change in fuel oil prices.

No. 2 Massive layoffs at Russell Stover:

About 150 local Russell Stover Candies employees lost their jobs on or around April 1. The announcement that the factory’s second shift, 3 to 11 p.m., would be eliminated came to both (then) Mayor David White and employees, said Robinn Weber, corporate’s senior vice president of human resources.

The notification of the mass layoff was presented to employees and White because of the WARN act. The Worker Adjustment and Retraining Notification act, created in February 1989, mandates that companies disclose mass layoffs or factory shutdowns 60 days prior. The layoff must include 50 or more employees for a span of at least six months (to be covered under WARN)

The Montrose facility employs about 480 people. The layoff affected all levels from maintenance to packers, and even supervisors, he said.

Russell Stover called it a “temporary” layoff because it was possible the jobs may return. However, it was said back in April that it would be at least six months before that might happen.

The layoff announcement was made just days after Montrose Economic Development Corporation and the county said they would work together to provide incentives for the plant to expand its freezer storage space.

Russell Stover has four manufacturing plants across the country, including Montrose.

No. 3 No more sweet corn? Farm dorm remains underutilized:

Congress’ inactivity concerning the immigration issue required farmers to scramble to find housing for temporary workers when they didn’t have to previously this last summer. It led to speculation that there could be no more sweet corn in the area that has made a name of itself from it.

And yet, the Olathe farm dormitory has sat mostly empty.

Tuxedo Corn Company owner John Harold, 67, said the sweet corn industry brings about $11 million to the Uncompahgre Valley each year. In 2007, his company produced about 500,000 boxes of sweet corn, each packed with 48 ears, for distribution from Alaska to Virginia. Most of his workers came from Mexico on H-2B visas through a returning workers program authorized by Congress in May 2005. That legislation expired September 2007.

U.S. Sen. Ken Salazar said that the program was one of many to expire following the failed passage of a comprehensive immigration reform bill.

So it begged the question what now for dormitory? It was proposed at one time this last year to shut its doors, but the Montrose County Housing Authority believes there’s a way to utilize the Olathe Farm Dormitory, it just hasn’t found it yet.

A new federal administration, however, may open new possibilities.

In December, the MCHA was awarded a waiver to allow homeless people with no income into the dorm for 30 days. The waiver is a step toward utilizing the 72-bed dorm north of Olathe. However, only two beds are currently being used as a result. During farm season, the most beds occupied at one time were 16.

The dorm was built in 1992 through federal grants and loans for about $800,000.

Because of how it was funded, there are certain regulations for its use. Due to the federal Housing Act of 1949, occupants must be U.S. citizens or “persons legally admitted for permanent residence.”

The act excludes farm workers who are in the U.S. for temporary work under H2A or H2B visas.

The housing authority, along with local farmers, have tried unsuccessfully over the years to have federal legislation altered to allow workers on agriculture visas to stay in the dorm. The failed requests have resulted in an underutilized dorm and a frustrated board.

— Honorable Mention —

Hospital and surgical center unite:

Montrose Memorial Hospital and the Black Canyon Surgical Center announced Wednesday, May 14, that a business agreement between the two has been finalized. MMH acquired 51 percent ownership in the surgical center, a plan which had been under discussion for about a year. The day-to-day operation of the center did  not change under the agreement, including financial happenings or staffing.

 The main benefits with the agreement will be some cost savings, as both entities have different purchasing organizations they work with for supplies.

Sunday liquor sales start in Colorado:

Sunday, July 6, was the first day for liquor stores to begin staying open on Sundays thanks to Senate Bill 82. Colorado was the 35th state to reform the sales restriction, which dates back to Prohibition. Many local liquor store owners were against the bill for the added cost of staffing and such staying open an extra day added.

However, the lifted restriction doesn’t mean businesses have to be open. Despite the new law, some liquor stores in Montrose were dark.

Grocery and convenience stores were only allowed to sell beer that is 3.2 percent alcohol on Sunday before the new law.

A ‘rocking’ grand opening in Olathe:

Patrons crowded into the newly constructed Rocking W Cheese and Milk’s retail store Saturday, June 14, enjoying samples of local dairy products. Though the grand opening didn’t start until noon, people started arriving by mid-morning, said co-owner Charlotte Webb. By the time tours of the factory started at 1 p.m., the guest book was more than half full.

Rocking W Cheese, on the corner of 57.00 Road and Colo. Highway 348, opened in May, providing milk products and nine different types of cheeses. The factory is a family-run business.