Niwot "an endangered species" - Tony Santelli

In the wake of 1914 House’s announcement that it will close as of July 7, 2024, Tony Santelli, a respected business professional and former president of the Niwot Business Association, has voiced his concerns about Boulder County's Minimum Wage Ordinance 2023-4. Santelli, who is a former site manager of IBM’s Boulder facility and a former owner of the Niwot Tavern, fears that this ordinance, if not addressed, could lead to significant financial strain on small businesses in Niwot and other areas of unincorporated Boulder County.

Niwot's current minimum wage is $15.69 per hour, which is $1.27 higher than that of the surrounding municipalities. The Consortium of Cities, which includes the incorporated cities and towns in Boulder County, including Boulder, Erie, Jamestown, Longmont, Louisville, Lafayette, Lyons, Nederland and Superior, “provides an organizational structure to promote interaction and communication among local governments for the benefit of the organizations and their residents,” according to the county website. It meets at 6 p.m. on the first Wednesday of every even-numbered month, and is chaired by the three Boulder County Commissioners. The City of Broomfield also participates as a non-voting member.

The Consortium of Cities has discussed the minimum wage in Boulder County, but so far, the group has not taken action to recommend a county-wide approach. Santelli is concerned that without a unified regional response from the Consortium of Cities, this wage disparity could result in Niwot businesses paying significantly higher minimum wages than the surrounding area. The county ordinance mandates an increasing pay scale that rises to $25 per hour by January 1, 2031.

The current county ordinance also impacts other small unincorporated towns and communities in Boulder County, such as Allenspark, Coal Creek Canyon, Eldorado, Eldorado Springs, Gold Hill, and Hygiene. Although allowed by state law, there is no exception for unemancipated minors in Boulder County as is the case in Denver.

Santelli said he received no notifications from the Boulder County Commissioners regarding increasing the minimum wage in the early stages leading up to its implementation as of January 1, 2024. He said if there was outreach, it was not picked up by local businesses.

Santelli continued, “It is a shame [that] Niwot, the smallest and most fragile community, should not be leading the minimum wage charge, but following. We should be last.” Santelli acknowledged that there is a housing affordability issue in Boulder County, and businesses need to pay a living wage. Still, he said, businesses need to be able to afford to pay the minimum wage. By mandating a minimum wage, it can potentially lead to the closure of businesses, resulting in loss of jobs and increased unemployment.

Santelli said he believes in the free market and acknowledges that as businesses grow, the free market will create more demand for labor, and wages will naturally go up. However, he said that the government cannot mandate businesses to stay in business when they are losing money, noting, “When profits go down, a business reacts by cutting labor and expenses, becoming less attractive, and it dies like a human.”

Santelli believes that Niwot leaders need to sit down with the Boulder County Commissioners and discuss the consequences. He explained that “Niwot generates about $30M in sales, and in the last year, the $30M has decreased. This ecosystem called ‘Niwot businesses’ is in decline.” He said he believes that the recent bout of inflation impacting the costs of all goods has resulted in people pulling back on discretionary spending.

“When the town starts shrinking in aggregate, it should be considered a crisis, which is usually when people become engaged,” he said. “Small towns like Niwot are becoming an endangered species. All small towns are endangered species as they need oxygen, which is profit, and if profit is taken away, they can become ghost towns.”

Santelli reflected back to 2007 when there was a 30% vacancy among Niwot retail stores. Due to the dire situation, the Niwot town leaders, including Harris Faberman who was the managing partner of Cottonwood Square at the time, asked to meet with Dana Crawford, who was involved in almost every successful renovation project in downtown Denver. She asked the group to describe the barriers that prevented new businesses from opening in Niwot. The group responded that no one knew Niwot existed, there was minimal or non-existent parking, and there was a lack of connectivity between downtown Niwot and Cottonwood Square.

As a result, an Economic Development Director position was eventually funded by the Niwot Local Improvement District (LID) and a Revitalization Committee was formed by the Niwot Business Association at the request of the LID. A Connectivity Study was completed in 2012 in conjunction with Boulder County, and road and pedestrian improvements were made.

Commercial vacancies were eventually reduced to the point where the Revitalization Committee became the Niwot Future League (NFL) and the Economic Director position changed to an administrative position for the business community. The issues discussed with Crawford in 2007 still exist to some extent in 2024, though additional signage on major highways, a new parking lot and Niwot Sculpture Park have made inroads.

Santelli, who has lived in London for ten years, Paris for two years, and Niwot for 25 years, believes Niwot is our heaven, but that residents must be engaged to ensure its survival. He is a former member of the LID and continues to serve as a member of the NFL.