Niwot residents plead with Boulder County Commissioners to pause the minimum wage ordinance

During the Boulder County Commissioners' public comment session on April 3, several Niwot residents addressed the commissioners with significant concerns about the detrimental effects of the current minimum wage ordinance on Niwot's small businesses.

Ordinance 2023-4, which took effect on January 1, 2024, established the minimum wage for unincorporated Boulder County at $16.57 per hour this year, $1.76 higher than the neighboring incorporated towns and cities, except Boulder, which is still lower than the county ordinance.

The ordinance mandates annual increases, reaching $25 per hour by 2030, and then further adjusting in accordance with the Consumer Price Index. Notably, most larger municipalities within Boulder County have opted out of this increase, leaving Niwot and unincorporated county businesses solely affected.

The monthly public session offers a three-minute speaking opportunity for residents to address concerns they have regarding county issues. Niwot business owners Nick Little of Noblestar Technologies, LLC, Steve Gaibler of Garden Gate Cafe, Anne Postle of Osmosis Art and Architecture, along with Niwot residents Jason Christopoulos, Peter Brandes, and Tony Santelli, passionately articulated the negative impacts of minimum wage disparity.

Little initiated the discussion, stating that the ordinance's intended regional approach had failed due to the opt-out of larger municipalities. He emphasized that unincorporated Boulder County small businesses were unfairly burdened, having already witnessed the closure of two flagship restaurants and an increase in vacancies.

Little stressed the "structural disadvantage" faced by Niwot businesses competing with areas adhering to the lower state minimum wage. He said, "This is not a level playing field. This is a structural disadvantage. Artificial Intelligence (AI) models are validating what the business owners have been saying all along. Without regional cooperation, these wages will backfire." Little told the commissioners that this is "a war you don't need to fight."

Postle, a long-time Niwot resident, Osmosis owner, and owner of a vacant commercial building with a restaurant space, shared that the minimum wage issue has deterred prospective tenants. Postle asked the Commissioners, "What about your other constituents, Louisville, Lafayette, Lyons, Superior? When all of your constituents say no, your policy is wrong. It appears that your only constituents who did not opt out were those who had no choice."

Postle said, "I have worked in the county long enough to hear the Commissioners say, 'Thank you for your comments' hundreds of times without it changing the outcome. I hope this is not one of those times." Postle urged the Commissioners to pause the minimum wage, advocating for a unified, county-wide approach to achieving a living wage rather than jeopardizing Niwot's small businesses.

Postle continued, "True leadership in achieving a living wage will require buy-in from all of your cities and towns. That should be your goal and your challenge. It should not be to put small Niwot businesses at risk for failure. Please put a pause on the minimum wage."

Gaibler, owner of Garden Gate Cafe for 25 years, described the ordinance's impact as "catastrophic" which will "kill the restaurant industry." He detailed measures he has taken at the Garden Gate Cafe to mitigate costs, including a reduction of 50 labor hours for the front and the back of the house, and the inability to hire high school and college students due to the lack of a minor exemption in the ordinance.

Tony Santelli, former owner of Niwot Tavern and a 27-year resident, likened Niwot to an "endangered species" facing a 15% drop in average sales revenue over the past two years. He argued, "Niwot's small businesses ('sparrows') were struggling to compete with larger municipalities ('eagles') due to the wage disparity."

While not opposed to a minimum wage, Santelli requested a pause to allow other municipalities to align, asserting that the current high minimum wage in unincorporated Boulder County is detrimental to protecting Niwot's economic viability. He asked the Commissioners to "pause the minimum wage so the other municipalities can catch up" resulting in a minimum wage that is "equitable and fair across all municipalities."

Christopoulos, an attorney and businessman, emphasized the unique value of small businesses within a community and contrasted them with large retailers. He argued that applying the same minimum wage standards to both created an unfair disadvantage for smaller enterprises, such as Love Ice Cream. He reminded the commissioners that a community does not come together solely over real estate and dental offices but needs restaurants and shops heavily impacted by the minimum wage discrepancy.

Christopoulos invoked the motto, "A small percentage of something is better than a complete percentage of nothing," to underscore the potential negative consequences for small business sustainability.

In their concluding remarks, Commissioner Levy said, "We hear you." Levy said, "The lack of any action on our part does not mean we have closed the door; it simply means that the state allows us to do something different one time per year."

Commissioner Stolzmann acknowledged the reported sales tax revenue losses in Niwot but stated, "These losses predate our minimum wage ordinance," attributing them to the impact of COVID-19 on factors such as travel patterns in downtown Denver and Boulder, as well as an overall reduced workforce.

Stolzmann mentioned people standing in line at the food banks and a living wage in the City of Boulder is at least $50 per hour. She said, "I heard someone say today $13.55 per hour is an insane wage to pay. I agree with that; I think it is insanely low. ($13.55 is a tipped wage, excluding tips.) She continued, "We cannot have businesses succeed by exploiting their workers." I am happy to revisit the minimum wage, and I would advocate for a higher wage."

Commissioner Loachamin requested to meet with the speaking residents to identify participants in the previous fall's small business grant program, where the county offered small businesses a one-time and limited stipend of $5,000. The next public comment session is scheduled for May 1.