Plains counties enjoy surge

Sterling’s new prison unlocks expanded commercial market

The engine of commercial growth in Logan County may turn out to be a single residential unit in Sterling, in this case what will be the largest correctional facility in the state. When this “mega facility” is complete about the year 2000, it will employ approximately 850 staff and will house 2,500 inmates.

“The corrections industry is a clean industry,'” explained Laura Furlong, executive director of the Logan County Chamber of Commerce. “And, unlike other industries, it is not likely to disappear. It will steady the economy in the region.”

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A correctional facility of this size was not always part of the plan for Sterling, Furlong said. Some eight years ago, when the county was first approached about having a correctional facility, the plan was to have a 500-inmate, minimum-security unit.

But over time, the plan changed. What was to be a rather small facility turned into the biggest in Colorado, constructed to deal with all levels of incarceration, from minimum to maximum security. The first lethal-fence facility in the state, the prison has been designed to reassure members of the nearby community that they are in no danger.

“Not everyone was happy about the change,” Furlong said. “People are fearful of things that they don’t understand. But this facility will be a big help to the economy of the eastern plains, which is traditionally agricultural and which has been hit hard in recent years.”

Traditionally, this area has depended on cattle ranching, corn and millet farming, the railroad and related industries for its economic base. However, as was clearly illustrated by the devastating 1997 flood in Atwood, little about an agricultural economy is dependable. Weather can be capricious and so can business. When the Excel Corp. beef-processing plant left Sterling, it left 300 employees without jobs.

It is Furlong’s hope that with the possibility of steady work with the prison, families will be able to maintain small farms without having to depend on them for a livelihood. In that way, the agricultural core of the economy can remain in tact.

Lisa Noble, executive director of the Morgan County Economic Development Corp., sees a commercial ripple effect from the prison that will spread beyond Logan County.

“A prison is like a small city. It needs food services, laundry services and educational services,” Noble said. “In Morgan County, we expect to see some benefits from the prison, because staff can live here and still be within the 55-minute response time limit.”

Cathy Shull, executive director of the Fort Morgan Chamber of Commerce, points out that Fort Morgan will enjoy indirect residential benefits from the prison’s close (but not too close) location. If one spouse of a two-income Denver family takes a job associated with the prison, Fort Morgan makes a good mid-point in which to live.

“It’s 71 miles to Denver and 48 miles to Sterling,” she said, “Not a bad commute in either direction.”

Although the prison certainly represents the biggest economic boon to the Plains, other activity exists that may or may not be related to what was eight years in the planning.

Shull has noticed an increase in retail business in Fort Morgan.

“Eight years ago, there were lots of empty store fronts on Main Street. Now there is nothing available,” she said. “There is a new Carl’s Jr., a Rite Aid pharmacy, another private pharmacy, and two or three stores have moved to new locations or are remodeling.”

Noble points to commercial growth related to operations that add value to agricultural products. “Leprino, that supplies mozzarella cheese for Pizza Hut and Papa John, has expanded it facility,” she said.

Sandy Schneider-Engle, director of community services in Fort Morgan, adds that the Dairy Farmers of America are building a large milk-condensing plant there.

“There are other signs that commercial growth is taking hold,” Schneider-Engle said. “The new owners of the gas station at the Fort Morgan exit off of I-76 are remodeling and adding a convenience store. The old Madison Hotel has become a Quality Inn under new ownership, and the gas station that was across the street has reopened with a convenience store.”

Among new family-owned businesses that Schneider-Engle is aware of is a boot and shoe-repair shop. She is surprised that there are two new pharmacies opening. Between the grocery stores, the hospital, two other local pharmacies, and the mail-order option through managed-care plans, the market seems saturated.

“It may be that the hospital expansion that was recently completed has created a bigger market,” she said.

As far as Morgan County is concerned, there is some ag-related expansion but little else.

“We are seeing more residential growth than anything else,´ said Barb Gorrell, county planning administrator. “The livestock-consignment facilities are expanding to keep their profit margins in line, and Shutts Dairy from Windsor is still going through the approval process for moving their dairy here.”

In general, then, it seems that most of the commercial growth not directly related to the prison has to do with the promise for more business/commuting traffic along Interstate 76 (considered underused by developers such as Bob Lembke of the Bromley Cos.) and with the movement of agricultural operations away from the Interstate 25 corridor.

The Fort Morgan Industrial Park has not undergone any dramatic bursts of building, but it has maintained steady growth with companies that have come and expanded.

Oakwood Homes produces manufactured housing, and Home Lumber and Supply builds trusses. Hallmark Builders manufactures agricultural steel structures such as buildings, sheds, and grain bins, and Mohrlong Manufacturing makes cattle- feeding equipment. Colorado Tubular; Barry Walker Sr. Plumbing, which makes brass fixtures; and GWB Welding are also located at the industrial park.

The proximity of the new airport probably bodes well for the growth of this park. About an hour away, DIA completes the rail, highway and air-transportation triad.