Hollywood Meets Main Street

While most Americans may not have heard of the small town of Las Vegas, New Mexico, many have traveled there –at least in their imaginations – while watching major Hollywood blockbusters such as 2007’s Academy Award winner for Best Picture “No Country for Old Men,” the 1984 Cold War thriller “Red Dawn,” and 1969’s counter-cultural landmark “Easy Rider.”  For almost one hundred years, filmmakers and television producers have found Las Vegas to be an ideal location for shooting productions on its historic streets and beautiful surrounding countryside.

Situated in north central New Mexico between the foot of the Rockies’ Sangre de Cristo Mountains and the edge of the Great Plains, Las Vegas’ outskirts can serve as a stand-in for a variety of different locales because of its diverse physical landscape.  In town, Las Vegas’ built environment features homes, storefronts, and civic buildings that showcase a wide breadth of prominent mid-to-late 19th  century architectural styles such as Italianate, Victorian, Queen Anne, Mission Revival, and many others.  This diversity in building style, the result of the city’s interesting history, makes Las Vegas a unique backdrop for film and TV productions, particularly ones seeking an authentic-looking small town with a colorful “Main Street” lined with stores, restaurants, and galleries.

Las Vegas’ Bridge Street, which connects “Old Town” with “New Town,” is home to shops, restaurants, and galleries that exemplify the Italianate commercial architecture popular in the mid-to-late 19th century.  (Photo Courtesy of the Las Vegas Citizens Committee for Historic Preservation)

Las Vegas’ eclectic architecture and vibrant history also make it a place worth preserving and redeveloping.  With local, state, and federal funding, Las Vegas has made significant progress through historic preservation, main street redevelopment, and supporting the arts and cultural activities.  These efforts have helped instill a sense of place as well as provide an economic boost to this city of 13,000 by creating jobs, spurring new businesses, and attracting private investment.

‘A Rich and Unusual History’

Las Vegas’ look and appearance today has been shaped by almost two centuries of cultural and economic influences, varied land use patterns, and the impact of transportation advancements.  “Las Vegas is a town with a very rich and unusual history,” says Doyle Daves, a Las Vegas resident and board member of the town’s Las Vegas Citizens Committee for Historic Preservation (LVCCHP).  “Even today, we still talk about it in terms of ‘Old Town’ and ‘New Town.’”  This geographic distinction is the result of two major economic periods that shaped Las Vegas.  Founded in 1835 along the Gallinas River, the city became an important drop-off point along the Santa Fe Trail, the critical 19th century route that carried goods and people between New Mexico and Missouri in the days before railroads.

In its heyday as an important spot along the Trail, Las Vegas consisted of small adobe homes located around a main plaza and church, in a traditional style of the Southwest region modeled after the Spanish Laws of the Indies.  Streets were winding, narrow, and spread out in relation to the terrain and to meet agricultural needs, rather than any particular plan.  During these years, Las Vegas grew in population and financially prospered due to its prime location along the Trail, 70 miles east of Santa Fe.

Las Vegas’ look and appearance today has been shaped by almost two centuries of cultural and economic influences, varied land use patterns, and transportation advancements.  (Photo Courtesy of the NM State Records Center and Archives)

Changes would eventually come to Las Vegas in the form of the powerful trains arriving from the East on the Atchison, Topeka, & Santa Fe Railroad that first arrived in town on July 4, 1879.  Though the invention of the railroad had major political, social, and economic impacts on the entire country, the changes it brought to Las Vegas were particularly profound.  The railroad depot in “New Town” was situated one mile away from “Old Town’s” central plaza.  In addition to bringing new goods, people, and attitudes from the East, the arrival of the railroad also resulted in new and different styles of planning and land use in the district surrounding the railroad depot.  In contrast to Old Town’s original winding and narrow streets, development in this part of town was based on a gridded street pattern found in Eastern cities and towns.  Streets were wider, more orderly, and lined with multi-story buildings designed in a variety of architectural styles such as the popular Italianate and Victorian.

The divisions that existed in town at this time were not limited to architecture and street design, but to politics and economics, as well.  These differences led to the community being split into East and West Las Vegas, which separately incorporated in 1888 and 1903, respectively.  They would eventually merge into one municipality, but not until 1970 after citizens voted for consolidation.  This history, though divisive at times, has shaped Las Vegas into the unique place it is today.  “Th[e] contrast between two different traditions and their cultures, and the friction and conflict that came with it, also brought to Las Vegas a diversity of styles, political prominence in northern New Mexico, a distinctive hybrid architecture, and a unique heritage that still gives the town a special sense of place unlike any community in New Mexico,” notes the 2011 Las Vegas Comprehensive Master Plan Update.

Like many other railroad boom towns that thrived in the late 1800s, Las Vegas did not fare as well in the twentieth century.   It suffered a major setback in 1905 when a new rail line was built in New Mexico between the towns of Clovis and Belen, cutting off Las Vegas in the north.  The Great Depression hit the community hard, and with the eventual decline of the railroad industry with the postwar rise of automobile and truck travel, Las Vegas turned into only a passing blur for many travelers whizzing through the state on I-25.  Today, Las Vegas is home to over 900 buildings listed on the National Register of Historic Places, one of the highest per capita in the nation.  In a strange twist of fate, Las Vegas’ mid-century economic challenges resulted in a historic and architectural goldmine that is “frozen in time,” in the words of the city’s 2010 Downtown Action Plan.  “So many of these historic buildings are still standing here because no one had the money to tear them down” after Las Vegas’ boom town days ended, says LVCCHP’s Daves.

‘A Good Time to Invest in Downtowns’

Main Street de Las Vegas covers a 1.07 mile corridor that includes the three major commercial districts in the city: Old Town, New Town, and Railroad Avenue. Click image to enlarge.  (Map courtesy of Community by Design)

It is within these historic buildings and along these streets that Las Vegas is seeking to promote economic development and foster a sense of community pride.  The city has benefited from being located in a state that values the importance of vibrant downtowns and main streets.  The New Mexico MainStreet Program was created in 1985 by the state legislature to support local towns and communities implement the National Trust for Historic Preservation’s Main Street Four-Point Approach which emphasizes economic development through historic preservation.

New Mexico MainStreet, part of the state’s Economic Development Department, provides technical assistance, training, business support, and other services to the 23 programs located throughout the state.  The work has resulted in major tangible results in both large and small communities.  In 2012, 622 new jobs were created, 134 new businesses were launched, and 135 private buildings were renovated, resulting in $16,912,000 in private sector reinvestment in communities involved with MainStreet.  These initiatives “are critical for New Mexico and particularly rural communities,” says Rich Williams, the program’s director.  “This is a good time to invest in downtowns, through acquiring or renovating a property or launching a new start up.  Main streets are the greatest places in the world to incubate small businesses,” he says.

‘A Visible Impact in the Community’

Las Vegas became a certified MainStreet community in 2005.  Projects are coordinated locally by Main Street de Las Vegas (MSLV), which oversees projects in a 1.07-mile corridor that connects the city’s three major commercial areas of Old Town, New Town, and Railroad Avenue.  These districts are home to a varied mix of shops, restaurants, galleries, bookstores, museums, residences, and hotels.  From 2005 to 2011, the work of Main Street de Las Vegas resulted in 18 net new businesses, the creation of 181 new jobs, and sparked $12,003,088 in private reinvestment.  Over $890,000 was received in public sector grants.  “Our organization has made a visible impact in the community,” says Cindy Collins, executive director of Main Street de Las Vegas.

State capital outlay funds have led to streetscape improvements in the downtown area as well as provide resources to support the creation of a Downtown Action Plan, which was finalized in 2010.  The city received $99,000 from the US Department of Agriculture Rural Business Enterprise Grant (RBEG) program to provide state and federal tax credit assistance to owners renovating buildings in the downtown area as well as to provide technical assistance to small business owners and operators.  USDA funds also led to the installation of WiFi in the downtown area and a GIS database of local businesses.

The Castañeda Hotel, formerly part of the famed Harvey House chain, was purchased in December 2012.  The plans to renovate the hotel will be “transformative” for the city, says Cindy Collins of Main Street de Las Vegas.  (Photo courtesy MSLV)

Two recent developments have generated much excitement in Las Vegas – the upcoming renovation of the Bridge Street Breezeway and the recent purchase of the long vacant Castañeda Hotel.  The Breezeway is an open air structure that sits on the former site of a vacant building that collapsed on Bridge Street.  Main Street de Las Vegas received $90,000 in capital outlay funds to renovate the space with the goal of using the area and the parking lot behind it for art exhibitions, music performances, and potentially a farmers market.  Work will begin in spring 2013.  In December 2012 the Castañeda Hotel, one of the former hotels in the famed Harvey House chain, was purchased by an investor seeking to renovate it and also include an artistic element to the property.  The Castañeda is situated next to the Las Vegas Intermodal Center, located in a renovated train station built in 1899 and today served by Amtrak’s Southwest Chief train.  “This project has the potential to be transformative for our city,” says Collins.  The buyer first became interested in investing in the property after reading the city’s master plan and later reached out to Main Street de Las Vegas with his proposal.

Volunteers, including students from nearby New Mexico Highlands University, have helped repaint 10 vacant buildings as part of the “Façade Squad” sponsored by Main Street de Las Vegas.  (Photo courtesy of MSLV)

Volunteers have been a key driver in the progress made along the main street corridor.  In 2011 alone, over 1,300 volunteer hours were logged.  One of the most successful volunteer-led projects has been the “Façade Squad,” a group of volunteers who have helped repaint 10 vacant buildings in an effort to beautify the area and inspire additional restoration.  Students from New Mexico Highlands University, located in the heart of Las Vegas near Bridge Street, have often volunteered on these painting teams.  Over the past five years under new leadership, the university has evolved into a major supporter of community development efforts in Las Vegas.  “The university recognizes that what’s good for the university is good for Las Vegas, and vice versa,” says Main Street’s Cindy Collins.  Highlands University was also a partner in the installation of a sign that directs visitors to the downtown area, the historic plaza, and the university itself, a major improvement as the community has lacked adequate signage to attract visitors off the highway.

Las Vegas has suffered from poor signage and wayfinding. Recently, this sign was been installed to direct visitors and passersby to the downtown and historic districts.  (Photo courtesy MSLV)

The North Central New Mexico Economic Development District (NCNMEDD) has been an active partner is supporting redevelopment efforts in Las Vegas, as well as including it in larger regional planning.  NCNMEDD covers a seven-county region and has worked with the city in application and grant preparation, technical assistance, and planning for a variety of projects, including a Community Development Block Grant (CDBG) application to fund the Comprehensive Master Plan and assisting in efforts to fund streetscape improvements.  NCNMEDD has included Las Vegas’ economic development strategies into the latest regional Comprehensive Economic Development Strategy (CEDS) report and also works with the city as part of a Regional Transportation Planning Organization that provides technical assistance and other support for local transportation projects.

Historic Preservation and Promotion of the Arts

Las Vegas’ main street redevelopment efforts have been bolstered by strong support for historic preservation and the promotion of the arts and culture in the city and surrounding areas.  Since 1977, the Las Vegas Citizens Committee for Historic Preservation (LVCCHP) has worked to support historic preservation in the city through both advocacy and educational initiatives.  It has assisted in writing Las Vegas’ historic buildings ordinance, partnered with the city to receive Certified Local Government status from the state to receive federal historic preservation funding, and organized educational workshops and tours to highlight Las Vegas’ past.  One of LVCCHP’s marquee events during the year is the annual “Places With a Past” tour held during Heritage Week.  This tour brings residents and visitors through homes that showcase Las Vegas’ diverse architectural styles, from the traditional adobe to the more ornate Victorian style.  “Places With a Past” also visits the Montezuma Castle, located six miles northwest of the city.  The castle, originally built as a hotel in 1886 for visitors to the nearby hot springs, is now home to the US campus of the United World Colleges.  This tour, as well as the Holiday Home tour and Garden tour, bring in visitors from the larger cities of Albuquerque and Santa Fe, as well as some out-of-state guests.

The Baca Building (right) and Estella’s Café (middle) are local landmarks on Bridge Street.  Families and individuals have been critical in supporting historic preservation efforts throughout the city.   (Photo courtesy of Emilio Baca)

Individuals and families have also been instrumental in supporting historic preservation in Las Vegas, rehabbing family homes and businesses while maintaining historic facades and designs.  William “Wid” Slick, owner of the Plaza Hotel located on Old Town’s plaza, has been active in preservation and restoration work in Las Vegas since the early 1980s, when he was involved in the restoration of the 19th century hotel.  Today, the Plaza and the adjoining Ilfeld Building are major attractions in the city for tourists and locals alike.  In 1980, Elmo Baca and his father Manuel bought and renovated an Italianate commercial-style building originally built in 1884 on Bridge Street, the colorful thoroughfare which connects Old Town and New Town.  That project first sparked Elmo’s interest in downtown revitalization and preservation efforts and he continues to remain involved in these community issues.  His building is located next to Estella’s, a family owned and operated restaurant open for over six decades.  It is a local landmark in its own right and its vintage sign outside is a favorite subject for amateur photographers seeking to capture the historic essence of Bridge Street.  This local community buy-in to preservation is an important reason Las Vegas has been able to maintain its historic character and charm.

In 2008, Las Vegas was designated by New Mexico as one of the two first pilot cities for the newly created Arts and Cultural Districts Program, established the year before by the state legislature with the goal of fostering local economic development through the arts and tourism.  Designation as an arts and cultural district provides for additional redevelopment support from the state, including more historic preservation tax credits and tourism funding (Tourism is the second largest net revenue generator in New Mexico).  Since its creation in 2007, the program has now expanded to serve six districts throughout the state.

One of the local organizations that has benefited from Las Vegas’ designation as an arts and cultural district is the Las Vegas Arts Council (LVAC).  Located in a historic building on Bridge Street, LVAC has supported a variety of artistic programs and initiatives in the community for over three decades.  With the help and support of volunteers, it converted its front office space into the Gallery 140 and for the past three and a half years has run a program to showcase local artists and musicians.  “The gallery gives arts a center stage and helps highlight the importance of the arts in our community,” says Linda Wooten-Green, a local artist and co-president of LVAC.  Recent shows in the gallery have featured sculpture, quilts, and tin artwork.  The gallery also hosts a Sunday music salon in the winter where local musicians, including high school and college students, perform in the space to around 40 to 50 people.  LVAC also supports the city-sponsored annual People’s Faire held every August for over thirty years.  Between 60 to 80 vendors from the region set up in Carnegie Park and sell crafts, jewelry, baked goods, jams and jellies, books, and other wares.  All of these efforts are part of the larger goal of making Las Vegas part of an “arts triangle” with the cities of Santa Fe and Taos.

Since the early 1900s, Las Vegas has served as the backdrop for many films and television shows because of its diverse architecture and landscape. Here, University Avenue is outfitted as a border crossing for the 2008 film “Inhale.”  Las Vegas is actually located over 300 miles away from the real US-Mexico border.  (Photo courtesy of the Las Vegas New Mexico Film Commission)

As mentioned earlier, Las Vegas has hosted numerous film and TV productions for almost one hundred years, dating back to the silent era when Tom Mix rode into town to film his western movies.  In addition to the natural and built environment that has attracted filmmakers, New Mexico’s film tax credit, which provides crews with a 25% refundable tax credit on production expenditures, is a major incentive for producers.  The local economy has benefited from these projects, as crews rent hotel rooms, eat and shop in local businesses, utilize local building material suppliers, and sometimes use locals as extras on productions, says Lindsey Hill, film liaison at the Las Vegas New Mexico Film Commission.  “The film industry has also helped increase tourism in our community,” she explains.  “People come from all over to check out the many film locations that have been used.  This is what spurred the creation of a film tour guide,” which includes information about the history of film in the city and points of interest for visitors to see the actual locations from some of their favorite movies.

A New Chapter 

For the 14,000 residents who call Las Vegas, New Mexico home, this town is not simply a stand-in for some other community on a movie or television screen, but rather a very real place steeped in local history, culture, and natural beauty.  These are the local assets that have attracted filmmakers to this small community for years, and it are these assets that local residents and officials are working to capitalize on to make Las Vegas a vibrant place to live, work, and be entertained.  Through local economic development efforts including main street redevelopment, historic preservation, and the promotion of the arts, Las Vegas is seeking to write a new chapter in its storied history – one that builds on its past to create a stronger future.

This case study was researched and written by Brett Schwartz, NADO Research Fellow.

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This is part of the NADO Research Foundation’s Vibrant Rural Communities series of case studies, which describes how rural regions and small towns across the country are growing local and regional economies and creating stronger communities. This series shows how communities can leverage a wide range of tools and resources to build on their assets, protect their resources, and make strategic investments that offer long-term benefits.

This project is based in part upon work supported by the Federal Highway Administration under Agreement No. DTFH61-10-C-00047. Any opinions, findings, conclusions, or recommendations expressed here are those of the authors and do not necessarily reflect the views of FHWA or the NADO Research Foundation.

The Baca Building (right) and Estella’s Café (middle) are local landmarks on Bridge Street in Las Vegas, New Mexico. Families and individuals have been critical in supporting the city’s historic preservation efforts.

It has often been said that “If you’ve seen one rural town, you’ve seen one rural town.”  This observation is certainly true as each community has its own geography, history, natural resources, climate, and demographics.  However, the unique nature of each town should not serve as a barrier for sharing success stories and best practices because communities – particularly small towns – can learn much from each other about building partnerships, seeking innovative funding opportunities, and encouraging community participation in economic development projects.  While not every small town will have the same local assets and advantages described in these case studies, every community does have the opportunity to look at itself, bring residents and elected officials together, and set a vision for how to take advantage of local assets in whatever form they take.  It is the goal of these case studies  to provide a snapshot of a few communities that have succeeded in beginning to make those visions a reality.

Featured Case Studies:

• Las Vegas, New Mexico
• Guthrie, Kentucky
• Potosi, Wisconsin
• Greenville, Kentucky
• Lavonia, Georgia
• Sheridan County, Wyoming
• Lewistown, Pennsylvania
• Clinton, Iowa
• Rome, Georgia

A citizen-supported restaurant and hotel tax in Greenville, Kentucky established a Tourism Commission which has financed downtown façade improvements as well as free festivals and concerts, including the popular summer music series, “Saturdays on the Square.” (Photo Courtesy of Greenville photographer Amy Hourigan)

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This project is based in part upon work supported by the Federal Highway Administration under Agreement No. DTFH61-10-C-00047. Any opinions, findings, conclusions, or recommendations expressed here are those of the authors and do not necessarily reflect the views of FHWA or the NADO Research Foundation.

‘The Good Ol’ Days Are Back’

Located in Southwestern Wisconsin near the banks of the Mississippi River, Potosi is known as the state’s “Catfish Capital.”  However, thanks to an innovative and community-led redevelopment project, this town of 700 people is becoming internationally-recognized for another one of its homegrown resources:  locally-brewed beer.

In 2008, after being abandoned for over 30 years, the Potosi Brewery once again began producing beer from its facility on South Main Street.  The newly restored historic site is also now home to the American Breweriana Association’s National Brewery Museum and other attractions, making it a major tourist destination in the region for beer enthusiasts from all over the United States and throughout the world.  During the first year of its reopening, the brewery had around 50,000 visitors from every state and over thirty countries.  In 2012, it is estimated that over 70,000 people passed through the small village to visit the brewery and museum, as well as to enjoy the variety of outdoor recreational opportunities in the area such as swimming, hiking, and fishing.

The Potosi Brewery as it stands today, renovated after it was vacant for three decades. (Photo courtesy of the National Brewery Museum)

Outside the brewery, a large vintage-looking advertisement proudly exclaims:  “Because of you, the good ol’ days are back.”  This sign is not a mere advertising gimmick.  Potosi’s success story truly has been about the village’s citizens coming together as a community to invest and rally behind a long dormant local asset.  While it is the brewery’s product – beer – that gets the headlines and brings in the visitors, Potosi’s accomplishments are rooted in the people of the village who revived and re-branded an important part of their history, embraced historic preservation, and developed a unique business model that has led to its success today.

Potosi’s Rich Brewing History

The Potosi Brewing Company survived the Prohibition era and went on to become the fifth largest brewery in Wisconsin. (Photo courtesy of the Potosi Brewing Company)

The history of beer production in Potosi dates back to 1852 when a small brewery first opened in the village.  During this time, many small Wisconsin towns had a local community brewery or cheese plant to serve residents, farmers, and laborers in the days before refrigeration allowed products to travel great distances.  However, it wasn’t until 1886 when Adam Schumacher bought the brewery and later formed the Potosi Brewing Company with his brothers that the brewery began to reach far beyond southwest Wisconsin.  Unlike many other small breweries, Potosi was fortunate to survive the Prohibition era and would eventually go on to become the fifth largest in the state, selling beer all over the United States.  Until its closing in 1972 due to the high cost of doing business, the Potosi Brewing Company was the primary employer in town for 120 years.  In 1980, the brewery buildings were listed on the National Register of Historic Places.

Despite its historic status and importance to the community, the brewery sat vacant and slowly deteriorated, also suffering damages from a fire that broke out in the complex.  For years, it looked as if the buildings would serve only as a dilapidated reminder of Potosi’s prosperous past until 1995 when local artist and woodworker Gary David and his cousin Denis David bought the brewery buildings for the cost of back taxes with the goal of restoring them.

A Local Asset Is Brought Back to Life

Five years later in 2000, renovation efforts expanded to involve the entire community with the establishment of the 501(c)(3) non-profit Potosi Brewery Foundation, modeled after the philanthropic Newman’s Own Foundation.  Upon its creation, the Foundation’s goals included renovating the brewery and ensuring it would be a “self-sustaining entity,” helping to “reconnect the community to a part of its cultural heritage,” and making the complex a tourist attraction and educational center highlighting Potosi and the greater region.  In 2001, the 28,000 square-foot brewery complex was donated to the Foundation which organized the redevelopment and funding efforts that would eventually culminate with the brewery’s grand reopening in June 2008.

Local businesses in the area all complement each other by providing lodging, retail, and event space. Click the picture to enlarge.  (Photo created using Google Earth)

The $7.5 million restoration project was funded from a variety of federal, state, and private sources.  As part of the USDA’s Business and Industry Guaranteed Loan Program, the federal government backed a $2.6 million loan which was extended by the Mound City Bank.  Additional development costs were then guaranteed by another USDA loan of $660,000.  The project also received a total of $849,000 from the Federal Highway Administration’s National Scenic Byways Program.  State historic preservation challenge grants, transportation enhancement grants, and Wisconsin Department of Natural Resources (DNR) brownfields grants for assessment and cleanup of the buildings provided a large part of the initial funding.  In February 2010, the Southwestern Wisconsin Regional Planning Commission (SWWRPC) made a $75,000 loan from its EDA Revolving Loan Fund (RLF) for additional expansion.  “Small towns like Potosi know that the only way to pull off projects like this is to seek funding from a variety of sources,” explains Linda Hanefeld, a project manager with the Wisconsin DNR.  The Foundation was able to raise five million dollars for the project, and is currently making steady progress in paying off the remaining loans.

A Visit to the Brewery

The National Brewery Museum, located at the Potosi Brewery, contains exhibits featuring historic beer bottles, cans, glasses, as well as other memorabilia and artifacts.  (Photo courtesy of the National Brewery Museum)

In 2004, the Potosi Brewery Foundation received a major boost to its redevelopment efforts when the brewery was chosen by the American Breweriana Association (ABA), an organization of beer historians, collectors, and preservationists, to be the home of the National Brewery Museum.  “It is a facility that Milwaukee, St. Louis, and others were trying to land, but here it is in Potosi,” says village president Frank Fiorenza, who has also been on the brewery’s board of directors since 1999.  “Landing a national museum with more than $2.5 million of artifacts changed the scope of things.”  The museum, managed by both the ABA and the Foundation, features historic beer bottles, cans, and glasses, as well as other memorabilia and artifacts displayed in both permanent and changing exhibitions.  The museum also houses the ABA’s Brewery Research Library which is open to the public.  In addition to the National Brewery Museum, the brewery has two other museums – a transportation museum and an Interpretive Center highlighting the historical and economic importance of the nearby Mississippi River.

Visitors to the brewery complex have a variety of entertainment and retail options while on the grounds.  These include a restaurant and outdoor beer garden which often serves meats, cheeses, and produce from area farms.  The restaurant’s handcrafted wood bar was made by artist Gary David, whose original vision helped spark the revitalization of the brewery after he first purchased the grounds.  A gift shop and art gallery showcasing work from local artists are located across the street from the brewery.  Potosi’s population swells in the summer with the annual Potosi BrewFest which attracts beer enthusiasts for beer and wine tastings, food, music, and tours.

A Local and Regional Economic Impact

“The brewery project was never an end in itself,” notes Potosi’s Fiorenza, who was instrumental in seeking funding for the project.  “I always saw it as a catalyst for additional economic development in the village.”  In its four years of operation, the brewery has provided a major economic boost to Potosi, creating 70 direct jobs and showing consistent financial returns from an increase in beer and merchandise sales.  2012’s beer sales are 13% higher than the previous year.  The restaurant has seen a 7% sales increase and gift shop sales are up 5% as many of the 70,000 visitors to the brewery have opted to bring home a reminder of their visit to Potosi.  The brewery now has ten distributors in Wisconsin, three in Iowa, and four in Illinois.

Importantly, the brewery’s economic impact reaches far beyond its location on South Main Street.  A 2009 Economic Impact Assessment written by the Southwestern Wisconsin Regional Planning Commission with additional research from the Grant County Economic Development Corporation found that the brewery had a $4.3 million impact on the region, generated by wages, beer and merchandise sales, and additional tourist revenue.   The study recognized the importance of local volunteers in supporting the brewery’s business model, noting that “[t]he organization is volunteer-driven and it would not likely have the impact it has had without those efforts.”  A new report is expected to be conducted soon which will likely show an even greater impact as the brewery has expanded its operations and seen an increase in visitors since the 2009 report.  Frank Fiorenza believes that a key part of the brewery’s success as a redevelopment project is that there was a long-term economic vision in addition to the historic preservation element.  “We had a product to sell – a beer with a recognized name. What is restored has to have some business component built into it so that it becomes self-sustaining.  A revenue-generating aspect has to be part of the restoration process to pay its own way,” he advises.

The Holiday Gardens Event Center, located across the street from the brewery, hosts a variety of special events and wedding receptions.  (Photo courtesy of the Holiday Gardens Event Center)

The brewery is closely interconnected with other thriving local businesses in Potosi which creates wider economic development for the village.  Prior to the brewery’s reopening in 2008, the Holiday Gardens Event Center and Pine Point Lodge both opened up nearby.  Holiday Gardens, located across the street from the brewery, hosts a variety of special events and wedding receptions throughout the year, serving about 18,000 guests annually.  “Many of our brides and grooms have their rehearsal dinner at the brewery and visit there on the day of their receptions,” says owner and manager Sharon Bierman, who runs Holiday Gardens with her family.  “We also keep Pine Point Lodge and the Potosi Inn booked for their rooms with wedding party members and out-of-town guests.”  The Pine Point Lodge was built a year before the brewery was completed and features four fully-furnished rental cabins near the Mississippi River.  Owner Mark Bode and manager Julie Oyen recognize the value of all the businesses in the area providing compatible services.  “We all have a part in making this work.  The efforts of the brewery, Holiday Gardens Event Center, the art gallery, and others all play an important role to make it all work for the good of our community and town,” says Oyen.

‘It Takes Patience and Persistence’

Potosi’s ability to turn a distinctive local asset into a world-class destination is due in large part to the Potosi Brewery Foundation implementing creative strategies that have embraced historic preservation, the tourism industry, innovative financing, and an effective non-profit business model.  Potosi has also benefited from additional local advantages.  “We have the Mississippi River at our doorstep, beautiful four-season scenery, friendly people, and great beer,” notes Sharon Bierman of Holiday Gardens.  Frank Fiorenza understands the unique nature of the project his town has undertaken and recognizes that not every small community has the assets or willpower to do so.  “I would like to believe that it can be [replicated elsewhere], but it takes a commitment and dedication of time that is not always easy to find.  It takes patience and persistence.  It takes community support.  It takes the right people to organize and spearhead efforts,” he says.  “Not every community has an historic building that can be restored, but perhaps there is a non-profit enterprise that can be supported to advance economic vitality.”

“Because of you, the good ol’ days are back…” reads a sign outside the brewery. Community involvement and volunteer support was instrumental in making this project a reality.  (Photo courtesy of the Potosi Brewing Company)

Award-winning beer and brewing history may be what brings visitors from all over the world to this small Wisconsin town.  But it is the people of Potosi that have made this project work, from local residents initially deciding to buy to the property, to the community’s involvement in the planning and visioning stages, to the over 100 volunteers who support the Foundation in a variety of capacities each year.  An emphasis on local – local beer, local food, and the local people themselves – have all contributed to the success seen here.  While the sign outside the brewery proclaims that Potosi’s “good ol’ days” have returned, the town’s economic development strategies that are rooted in a creative approach to main street redevelopment have set Potosi on a path to enjoy many more good days long into the future.

This case study was researched and written by Brett Schwartz, NADO Research Fellow.

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This is part of the NADO Research Foundation’s Vibrant Rural Communities series of case studies, which describes how rural regions and small towns across the country are growing local and regional economies and creating stronger communities. This series shows how communities can leverage a wide range of tools and resources to build on their assets, protect their resources, and make strategic investments that offer long-term benefits.

This project is based in part upon work supported by the Federal Highway Administration under Agreement No. DTFH61-10-C-00047. Any opinions, findings, conclusions, or recommendations expressed here are those of the authors and do not necessarily reflect the views of FHWA or the NADO Research Foundation.

Although both Senate Majority Leader Harry Reid (D-NV) and House Speaker John Boehner (R-OH) publically stated this week that their chambers will act on the stalled legislation when Congress returns in November, neither leader provided details on how they intend to negotiate a final farm bill during a lame-duck session. Leader Reid said he would push the House for a five-year farm bill, while Speaker Boehner said the House would consider a multi-year measure or even an extension of the current law.

When they revisit the matter in November, negotiations will not be easy. The Senate passed a five-year farm bill (S. 3240) in June that would save $23 billion over 10 years while the House Agriculture Committee approved a five-year bill (H.R. 6083) in July that would save $35 billion over 10 years. House Republican leaders have not allowed floor consideration of the measure over disagreements among GOP members over the level of proposed reductions to the Supplemental Nutrition Assistance Program (SNAP). The House bill proposes $16 billion in cuts to the program over 10 years, while the Senate bill proposes $4.5 billion in cuts.  While House conservatives want much deeper reductions, most House Democrats do not support any cuts to the program and would be unlikely to provide GOP leaders the votes they need to offset lost Republican votes.

Like the Senate bill, the House measure repeals or consolidates more than 100 programs.  The House bill would also reduce food and nutrition spending by more than $35 billion, mainly by cutting about $16.5 billion from the Supplemental Nutrition Assistance Program (formerly the food stamps program). The Senate bill (S. 3240), which was passed on June 21, cut about $23 billion in spending, with $4.5 billion in savings coming from food stamps. About 80 percent of farm bill spending goes to food stamps.

During yesterday’s 15-hour mark-up, the House Agriculture committee considered about 100 amendments to the legislation, including several that would impact regional development organizations and rural America. Rep. Mike McIntyre’s (D-NC) amendment to reauthorize the Northern Border Regional Commission and Southeast Crescent Regional Commission was ruled “out of order” by the Committee leadership and Rep. McIntyre was unable to offer the amendment. Other key amendments included:

• An amendment offered by Rep. Mike McIntyre (D-NC) was rejected by voice vote that would have directed $50 million in mandatory spending to address the water and wastewater backlog at USDA.
•  An amendment offered by Rep. Terri Sewell (D-AL) was rejected (26-18) that would have required the Secretary of USDA to give priority to economic development projects undertaken through a collaboration of stakeholders, including multiple layers of government.
•  An amendment offered by Rep. Chris Gibson (R-NY) was rejected (25-19) that would have allowed USDA to award loans in combination with grants when lending for broadband telecommunications services in rural areas.  The grants would not exceed 10 percent of the cost of the project involved.
•  An amendment offered by Rep. Chris Gibson (R-NY) was rejected by voice vote that would have raised the population threshold from 20,000 to 30,000 for rural areas to participate in the Community Facilities loans and grants programs.
•  An amendment offered by Rep. Chris Gibson (R-NY) was rejected (24-20) that would have increased the Rural Utilities Service Broadband Program authorization level from $25 million to $35 million and would have directed appropriators to provide no less than $25 million for loans and no less than $10 million for grants.
•  An amendment offered by Rep. Joe Courtney (D-CT) was withdrawn that would have clarified the definition of an “unincorporated area” to include state or municipally designated townships, villages, boroughs, counties or municipal subdivisions.
•  An amendment offered by Rep. Austin Scott (R-GA) was adopted by voice vote that would give greater flexibility to USDA’s Rural Business and Industry Loan Program by including the term “working capital” as an approved purpose.  The amendment would also allow rural small businesses to use their accounts receivable for securing adequate collateral during the underwriting process for the loan program.
•  An amendment offered by Rep. Chellie Pingree (D-ME) was withdrawn that would have removed the cap on USDA’s Business and Industry loans in certain circumstances and would have authorized local and regional food systems as eligible for Rural Business Opportunity Grants.
•  An amendment offered by Rep. Peter Welch (D-VT) was adopted by voice vote that would reauthorize state-and-local rural development councils through 2017.

Moving forward, the big question remains whether or not the House Republican Leadership will move the bill to the floor before the November elections. House leaders also have the option to bypass a House floor vote and send the legislation directly to conference with the Senate, which approved its version of the farm bill (S. 3240) on June 21.

Although House Agriculture Committee Chairman Frank Lucas (R-OK) and Ranking Member Rep. Collin Peterson (D-MN) have urged House leadership to move the bipartisan package forward, several obstacles stand in the way of getting a farm bill passed before the election: a short legislative calendar to complete work on the bill, major fundamental differences between House and Senate versions of the bill, and pressure from Republicans for larger cuts in government spending.

Ultimately, the House and Senate must work out a final compromise before Sept. 30, when the current five-year farm bill (passed in 2008) expires, or else an extension would be necessary.

Farm Bill Resources:

• Click here to view a list of all the amendments offered at the Agriculture Committee mark-up as reported by CQ
• Click here to view USDA Secretary Vilsack’s statement on the House farm bill
• Click here to view the legislative text of the House Federal Agriculture Reform and Risk Management Act (FARRM)
• Click here to view the committee summary of FARRM
• Click here to view the House Agriculture Committee press release
• A committee summary of FARRM can be found here
• Click here to view a letter from the Congressional Budget Office (CBO) to Agriculture Committee Chairman Frank Lucas on the estimated spending effects of FARRM
• For more information on the Senate farm bill (S. 3240), including bill text and Senate Agriculture Committee summaries, click here
• On June 6, NADO and 185 other organizations, as part of the Campaign for a Renewed Rural Development, sent a letter to the Senate requesting increased investment in rural development. To view the letter click here

Like the Senate bill, the House draft legislation (FARRM) repeals or consolidates more than 100 programs.  According to the Congressional Budget Office (CBO), the House draft would cut mandatory spending by approximately $35 billion from fiscal 2013 to 2022, which is $12 billion more than the CBO score for the committee-approved Senate bill (S. 3240). The Senate passed its bill on June 21.

The majority of savings from FARRM ($16.1 billion) would come from cuts to the Supplemental Nutrition Assistance Program (SNAP) (formerly food stamps). An estimated $23.6 billion in savings from changes to commodity programs would be offset by an increase of $9.5 billion in spending on crop insurance, providing a net savings of approximately $14 billion. Much of the remaining savings (about $6 billion) would come from consolidating 23 conservation programs into 13.

Under the Rural Development title (Title VI of FARRM), 14 programs are eliminated and funding levels are reduced by more than $1.5 billion over five years, a 50 percent reduction in authorizations. In addition, the draft House bill includes only $50 million in mandatory funding, approximately $100 million below current levels.

In comparison, the final Senate bill (S. 3240) provided $150 million in mandatory funding divided among four Rural Development programs:

• Value-Added Producer Grant Program  (Provides $50 million)
• Rural Micro-entrepreneur Assistance Program (Provides $15 million)
• Water/Wastewater Backlog (Provides $50 million)
• Beginning Farmer and Rancher Development Program (Provides an additional $35 million, bringing total BFRDP funding to $85 million)

The House draft measure reauthorizes the Intermediary Relending Program, the Rural Micro-entrepreneur Assistance Program, the Broadband Loan Program, the Distance Learning and Telemedicine Program, Rural Cooperative Development Grants, several community facilities loans and grants, and several Water and Wastewater Programs including the Water, Waste Disposal and Wastewater Facility Grants, the Circuit Rider Program, Imminent Community Water Assistance Grants, and grants to finance individual wells.  The draft also provides $50 million in mandatory funding for Value-Added Producer grants.

In addition, the draft requires USDA to develop simplified application forms wherever practical for rural development programs to reduce administrative burdens and make the programs more accessible to small, rural communities. The draft also directs USDA to update a previous study on rural transportation issues to provide policy makers with current data on the state of transportation systems which move commodities and processed goods throughout rural America.

Moving forward, NADO continues to work with committee staff on both the House and Senate Agriculture Committees, and with over 100 other organizations as part of the Campaign for a Renewed Rural Development to ensure that strategic investments continue to be made in rural America.  Click here to view a coalition letter signed by NADO which applauds House Agriculture Committee Chairman Frank Lucas (R-OK) and Ranking Member Collin Peterson (D-MN) for their leadership in moving the bill forward, but asks them to correct several issues in the Rural Development title of the bill.

Resources:

• Click here to view a draft of the House Federal Agriculture Reform and Risk Management Act (FARRM)
• A committee summary of FARRM can be found here
• Click here to view a letter from the Congressional Budget Office (CBO) to Agriculture Committee Chairman Frank Lucas on the estimated spending effects of FARRM
• For additional information on the House Agriculture Committee markup scheduled for July 11, click here
• For more information on the Senate farm bill (S. 3240), including bill text and Senate Agriculture Committee summaries, click here
• On June 6, NADO and 185 other organizations, as part of the Campaign for a Renewed Rural Development, sent a letter to the Senate requesting increased investment in rural development. To view the letter click here

Every five years, Congress passes a bundle of legislation, commonly called the “Farm Bill” that sets national agriculture, nutrition, conservation, and forestry policy. The last Farm Bill was passed in 2008, and is set to expire this year on Sept. 30.

Among many policy changes, the Senate-passed Farm Bill ends direct payments, streamlines and consolidates programs, and reduces the deficit by $23 billion by cutting crop subsidies (which provide the majority of savings), conservation funding and the Supplemental Nutrition Assistance Program “SNAP” program (food stamps). Specifically, the bill would terminate $5 billion in annual direct payments to grain and cotton growers and replace it with a revenue-protection plan that would offer “shallow loss” coverage for farmers who experience price and crop losses. The bill would also cut the SNAP program by $4.5 billion over the next five years.

Among the amendments, amendment #2445 offered by Sen. Sherrod Brown (D-OH) passed by a vote of 55-44 which would strengthen rural communities by providing $150 million in mandatory funding divided among four rural development programs:

• Value-Added Producer Grant Program  (Provides $50 million)
• Rural Micro-entrepreneur Assistance Program (Provides $15 million)
• Water/Wastewater Backlog (Provides $50 million)
• Beginning Farmer and Rancher Development Program (Provides an additional $35 million, bringing total BFRDP funding to $85 million)

The House Agriculture Committee is expected to mark up its version of the bill July 11.  The House bill is expected to be $10 billion below the Senate measure.

For more information on S. 3240, including bill text and Senate Agriculture Committee summaries, click here.  On June 6, NADO and 185 other organizations, as part of the Campaign for a Renewed Rural Development, sent a letter to the Senate asking them to invest in rural development and to support Sen. Brown’s amendment.  To view the letter click here.

Read the full NADO written statement.

This was the first of eight hearings by the committee as it prepares to draft its version of the 2012 Farm Bill, which covers commodity, nutrition, conservation, energy, forestry, research, and rural development programs across USDA.

At the hearing, Mazer discussed the importance of USDA Rural Development programs and how they are critical to our nation’s rural and most distressed areas as they work to further develop the fundamental building blocks necessary to be economically viable and competitive.  She also explained how the programs can be improved to increase their effectiveness.

“With rural regions now facing intense global competition, we need to ensure USDA Rural Development has the policies, program tools, and flexibility to assist rural communities with cutting-edge, asset-based regional development strategies and investments.  This will take a new level of sophistication and capacity within our rural regions and at USDA Rural Development,” said Mazer.

“USDA Rural Development applications, policies, and reporting requirements should be streamlined and broadened to reflect the scale of rural investments, emerging needs and opportunities of rural regions, and capacity of local organizations,” Mazer said.  “While retaining necessary financial and performance accountability standards, Congress should ensure USDA Rural Development has a modern set of policies, programs, and incentives to help rural communities pursue regionally-based, locally-driven community and economic development strategies.”

• Read the full NADO written statement.
• Witness statements for House Ag hearing on Rural Development
• House process for 2012 Farm Bill

View the NADO power point presentation.

Representing NADO and the National Association of Counties (NACo), McCauley focused his remarks on three key rural development areas:

• The mission area of USDA Rural Development is a critical piece to the overall competitiveness of rural regions as we work to foster job growth, regional innovation, and economic prosperity.  This includes basic yet essential investments for infrastructure and utilities, housing and community facilities, and access to capital and entrepreneurial development.  In today’s era of intense budget pressures and growing local needs, it is important that we make more strategic investments that strengthen regional and local competitive advantages and coordinate our public sector resources.

• With rural regions facing increasingly global competition and opportunities, we need to ensure USDA Rural Development has the tools, resources and flexibility to assist rural communities and regions with cutting-edge, asset-based regional innovation strategies and investments.  To be successful in the modern economy, rural entrepreneurs and communities must be connected to global and domestic markets—digitally, institutionally, and physically.  This will take a new level of sophistication and capacity within our rural regions and at USDA Rural Development.  It will also mean improving federal interagency collaboration, fostering stronger public-private-nonprofit partnerships, and leveraging existing strategy processes, such as the U.S. Economic Development Administration’s Comprehensive Economic Development Strategy (CEDS) framework.

• USDA Rural Development applications, policies, and reporting requirements should be streamlined and broadened to reflect the scale of rural investments, emerging needs and opportunities of rural regions, and capacity of local organizations.  While retaining necessary financial and performance accountability standards, Congress should ensure USDA Rural Development has a modern set of policies, programs, and incentives to help all rural communities pursue community and economic development growth.

View the full NADO-NACo rural development statement.

View the hearing video and hearing statements.