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Category: Undeniably Right Undeniably Right
Published: 26 December 2014 26 December 2014

As I shopped in downtown Silver City this past week, I of course saw how many storefronts are sitting empty. Many of them have been vacant for years. Others have had businesses occupy the space only to shut down because they couldn't make it. There are a lot of reasons that we have so many empty stores in our downtown area. One of the undeniable truths about any 'problem' is that there is rarely a single cause of the problem and thus there is rarely a single, simple solution. It's complicated.

Poor business decisions, high cost of government regulation, failure to adapt to market demands; we could make a long list of factors that created unfavorable business conditions and caused someone to shut their doors. But because of another conversation had in a local tavern, let's look at a couple of situations that make it hard for someone to move into the downtown area and make a living.

For well over a decade along with friends and family, we have spent Christmas Eve afternoon in one of the local iconic businesses, the Buffalo Bar. Whatever you think of the Buff, it is a local landmark with a storied history. I spent time in the bar when I was younger, a teen, while my dad and friends would stop in to pick up a case of Bud longnecks. I wasn't drinking but they would always have a beer and then leave with a couple of cases.

I could go on about how the Buff has been a part of the fabric of many lives in Grant County; how its reputation has spread across the region and many people visiting Silver City make a stop to experience the Buff.

But now the Buffalo Bar sits empty, likely never to reopen. The causes are myriad and many could have been avoided had the owners made better decisions along the way. Certainly you can blame the reputation of the bar, exaggerated as it may be, but nonetheless part of the problem. Too many people saw it as a place where fights broke out often. Not true but partially earned.

The condition of the facilities certainly played a role, with the bathrooms being slightly better than an outhouse and only then because you didn't have to walk outside into the elements to relieve yourself of the Bud Lights you'd been consuming.

Back to the conversation; the cost of buying the Buffalo is prohibitive for several reasons. The owners, before they sold their liquor license, wanted a king's ransom for the business. Even if a more reasonable price could have been negotiated, the cost of upgrading the building was prohibitive in and of itself. And now the current owners, because the business has been closed, are no longer grandfathered and immune to having to bring the building up to code. That is expensive.

Having looked at a potential purchase several years ago and knowing the condition of the building, then discussing costs with a contractor and comparing it to another building just across the street, I know a potential new owner would spend at least $750,000 to bring the building into compliance. Combine that with even a reasonable purchase price of the business and you are talking about serious money to just reopen the doors.

Some of the regulations are necessary and have to do with public safety. But some of the requirements are strict and don't allow for less expensive alternatives that would accomplish the same goal. Often these regulations were put in place at the request of existing businesses in order to protect their business, making it harder for others to enter the market and compete.

And you'd have to buy a liquor license. Who owns those these days? Big companies. Because of New Mexico's arcane liquor laws, a license becomes a hot commodity with prices exceeding a quarter of a million dollars and often reaching into the $300-400 thousand range. Small business owners cannot compete with CVS, Walgreens, Albertson's and big companies in vying for the purchase of a license. Change the law allowing a reasonable charge to be paid, a few hundred dollars maybe, and allowing a small business owner to compete with the big boys. Don't limit the number of liquor licenses that are in the market.

Why not let a person gradually bring things up to code? Make necessary repairs that directly and immediately affect public safety now but allow them to gradually make repairs to items that are more cosmetic or a matter of convenience as business increases. I know I'll make some property owners mad, but don't grandfather businesses. If a regulation is truly necessary for public safety, make them stay in compliance with the law. Give them options that can help decrease the cost but achieve the goal.

When there is more choice in the market, the consumer wins, the overall economy of the region wins. People find ways to succeed. Get unnecessary regulations out of the way, use common sense in applying those regulations and we will gradually see more businesses open, owned by local residents. That's a good thing for Grant County.