Inside the brown and pink façade of Burnsie's Boca clothing boutique in downtown Ketchum, customers perused sequined sweaters, colorful workout wear and the latest offerings in denim.
For a Monday afternoon, proprietor Debbie "Burnsie" Burns was keeping busy.
But in her quieter moments, Burns reflects on the changing face of downtown and the challenges that lie ahead for her and other Ketchum business owners.
"There's been a concentration on development instead of on downtown," said Burns, who also serves on the Ketchum Planning & Zoning Commission. "We're losing retailers. There's not been enough thought about the effect of development. We should have had a downtown master plan before we lost so much."
The city of Ketchum is at a crossroads, many business owners and city leaders say.
To avert further erosion of economic activity, the City Council in October declared an emergency moratorium on certain types of residential units in the downtown core.
The ordinance states there is an imminent peril to the public health, safety and welfare because the city can't collect enough local option taxes to pay for essential services.
Over the past five years, 75 percent of the applications for building permits in the commercial core were for residential projects.
Every time downtown property is developed as a single-family home or with residential space on the ground floor, the ordinance states, the city permanently loses the potential to develop such property for commercial, entertainment or retail activity.
Increasingly, then, the city's economic vitality suffers, reducing its ability to staff and pay for fire, police and emergency medical services.
While the city discusses enactment of an interim ordinance and zoning revisions, economic development consultant Tom Hudson has been called in to help residents and city officials formulate a downtown master plan.
In an interview, Hudson said the city's number-one priority should be to establish a clear strategy to sustain a vibrant, year-round downtown community.
"That's exactly what they're doing with the downtown master plan, which builds on the comprehensive plan," he said.
Hudson's job is to clarify strategic intentions and help make those happen.
"What's the role of downtown?" he asked. "How do you make it a 24-hour town? More importantly, how do you make it a 12-month downtown?"
Changing demographics have shaped downtown Ketchum since the city's inception. Beginning as a regional distribution center for mining, the city adapted to its residents' needs.
"From my perspective as a community planner, the early downtown was a true community center," Hudson said. "It had a broad range of commercial services. In that role it had a great degree of centrality—social, cultural, civic, religious, commercial and residential. There was a centrality of all those right there within walking distance. It played that role well partly because of the isolation and because of the density of the community caused by being in a narrow valley."
Mining soon gave way to sheep herding. And then the valley's economic thrust became tourism and outdoor recreation, Hudson said.
But as the town built out to its practical limits, hemmed in by hillsides and ordinances barring their development, property values increased, he said.
"It made it harder and harder for community-oriented businesses to survive," he said. "The tourism store puts pressure on the hardware store."
Tourism- and community-oriented businesses have common ground, he said, and can be complementary in a downtown. But the increase of second-home owners has further impacted businesses because part-time residents aren't as frequently in the valley spending money. Furthermore, they drive up property values, resulting in higher rent for merchants.
In Mayor Ed Simon's 30 years as a Ketchum resident, he's seen many businesses come and go, but he said a new focus on purely residential development in the city's core is a notable difference.
"That's a threat to economic vitality," he said.
Carol Waller, executive director of the Sun Valley-Ketchum Chamber & Visitors Bureau, said there has been a change in retail's focus.
"They're catering to second-home owners and high-end visitors," she said.
The city doesn't have a complete inventory of businesses operating in Ketchum—plans for that are under way—so it's impossible to know exactly which businesses thrive and which ones close quickly.
Wholesalers, Internet-based companies and other tucked-away operations contribute to the economy in a less obvious manner.
"There are all these businesses that might not be directly related to tourist economies," Waller said. "There's always new restaurants and retail businesses in town. But I don't think any of us has a handle on non-storefront businesses."
Often, entrepreneurs of "non-place based" businesses come to Ketchum for the quality of life and the skilled workforce found in the valley, Waller said.
Keeping such workers around, however, poses additional challenges because of the cost of living.
A central aspect to revitalizing the city is expanding affordable housing, Hudson said.
"For me, it's one of the fundamentals," he said. "If you're losing year-round citizens, it's very difficult to sustain businesses. Everybody's going to suffer if there's no affordable housing."
Burns wants to see more affordable housing options, but she also envisions more hotels, some with small convention centers, as key.
"We need to increase density to drive people to the core," she said. "We need more hotels, more beds, and we have to figure out our parking problem. And we need more pedestrian-friendly spaces."
But even with more people coming to town and spending money, merchants face another hurdle, she said.
"It's OK to say we need more retail. But we can't afford it as it is," she said. "The whole structure has to change."
Merchants could be aided by lease-purchase options, multi-use buildings or reserving some square footage for affordable retail space, modeled after affordable housing policies, she said.
"Not everyone is a luxury-oriented consumer," Hudson said. "It's not because retailers are conspiring against consumers. It's the cost of doing business. You've got to sell a lot of bars of soap and pairs of underwear to stay in business under these economic conditions."
Without change, merchants such as Burns say they may have to uproot their businesses.
"When it comes to people like me ... or others who are struggling, the only people who will be able to stay in town are the big guys, those who own their buildings," she said. "People like me will leave and go where they can buy a space."
Despite the sometimes troubling forecast, Hudson said, Ketchum's foundation is solid, and has many essential elements that make a community thrive.
The town has small districts already in place, each with a different flavor.
"We want to help them fulfill their roles better," he said. "There are a number of elements of centrality, which is still very good. Atkinsons' has parking and circulation problems, but it's still an asset. Coffee places, good restaurants. You've got the makings of a good, strategic program."
A well-defined center will facilitate day-to-day social interaction.
"There are a lot of places to go but not a lot of places to be." Hudson said. "Where do people gather and hang out? Downtown Ketchum is defined geographically as an extremely large area for such a small place. The real commercial core needs to be smaller."
The town's history is still visible but could be emphasized more, he added.
"At least you know about the ore wagons," Hudson said. "But where's (evidence of) sheep-herding history? Those are things we want to highlight. Make those things that are the fabric, the values, the heritage visible for people who come for a day or the rest of their life."
Burns is encouraged, if not by staggering sales receipts, but by the will shown by residents and community leaders.
"I'm not saying things are hopeless," she said. "The emphasis on really pushing along the downtown master plan is incredible. I love the way the town is showing up."
Hudson agreed that collaboration will foment action.
"You've got the leaders, you've got the partnership between the chamber and the city, and you've got citizens expressing a level of concern and the desire to help make things right," Hudson said. "It's definitely time."
Both Katelyn Horsley,left and Heidi Rentsch, right are relatively new to the Wood River Valley but found Burnsie's Boca, owned by Deborah Burns, center, by walking around downtown Ketchum. Photo by Willy Cook
