Southwest Colorado
The Southwest Colorado BDO Zone for Woody Biomass is rated ‘BBB’.
Rating Issue Date: April 25, 2025.
'BBB' ratings indicate good prospective viability of Feedstock Supply and Infrastructure and low current expectations of default risk in the Zone. Capacity to support new biobased plant operations is considered adequate, but adverse weather, supply chain, economic, or infrastructure conditions are more likely to impair this capacity over time.
Southwest Colorado BDO Zone Overview
Feedstock quantities are expressed in bone dry tons per year (bdt/yr), while feedstock costs are expressed in USD ($). Maximum transport distance is based on a 75-mi driving distance from the centre point (Mancos, CO).
BDO Zone Assets
- Existing logging and grinding equipment capacity is sufficient to supply rated biomass quantities.
- Opportunity to co-locate with existing sawmill and pellet mill, sharing infrastructure to expedite operations.
- Limited competition for available sawmill residues, forest residues, and softwood pulpwood within the Supply Zone.
- Low costs for regional utilities, including industrial natural gas, electricity, water, and telecommunications services.
BDO Zone Liabilities
- High risk associated with community opposition to forest restoration and biomass utilization activities.
- High reliance on government subsidies for forest management in public lands.
- Declining sawmilling capacity due to reduced fiber availability from the San Juan National Forest.
- Significant investment risks associated with securing rated quantities from national and state forests.
Infrastructure
- 30-acre industrial site co-located with existing forest products operation
- Shared infrastructure and expedited permitting potential
- Utilities: natural gas, electricity, water, wastewater, internet (low utility costs)
- Highway access: U.S. Highway 160
- Air access: Cortez Airport (18 miles)
- Local workforce supported by vocational training programs
- Low crime, affordable housing, healthcare access
- Viable site for biomass projects with manageable infrastructure risks
- Located 18 miles from Mancos on U.S. Highway 160
- 4.5-acre site zoned commercial
- 4,000 SF warehouse with office space
- 13,464 SF of flex space available
- Green space lots with city water and sewer
- Only industrial-zoned site in Pagosa Springs
- Located in an Opportunity Zone, near Archuleta County Airport
- Year-round recreation amenities nearby (hiking, skiing, disc golf)
- Existing tenants include a sawmill and Forest Health Biochar business
- Infrastructure: 3-phase electric, water, sanitation, natural gas, fiber/wireless broadband
- Airport runway: 8,100 ft non-commercial at Steven’s Field
- Available lots: 0.86 to 1.2 acres
- Established business park owned by Dolores County Development Corporation (DCDC)
- Ground leases available (separates land/building ownership)
- Access via County Road H & Weber Park Loop (county maintained with snow removal)
- Utilities: potable water, electricity, natural gas, cable, phone, summer irrigation
- High-speed internet via Century Link
- Septic and solid waste services available through local providers
Local Grants and Incentives
Businesses located in the Southwest Enterprise Zone—which includes all of Dolores, Montezuma, and San Juan Counties, and parts of Archuleta and La Plata—may qualify for several state income tax credits:
- Capital investment
- Job creation
- Job training
- R&D tax credits
- Local jurisdictions can offer phased property tax abatements on the increase in value from business improvements.
- May include local sales tax refunds on equipment, machinery, and supplies.
- 8-year performance-based tax credit for businesses expanding or relocating to Colorado.
- Credit equals 50% of the FICA tax per net new job.
- Jobs must be maintained for 1 year to vest.
- Credits can be carried forward for 10 years if not fully used.
- Projects must not start until the business is approved by the Colorado Economic Development Commission.
- Available in all of Dolores and San Juan Counties and parts of Montezuma, La Plata, and Archuleta.
- Offers capital gains tax incentives for private investment in designated distressed areas.
- Supports both business and real estate development.
- For new, unique businesses with no local competitors, available in: Dolores, Montezuma, Archuleta, La Plata, San Juan Counties.
- Benefits include:
- State income tax relief (business and employees)
- State sales & use tax exemption
- County/municipal personal property tax exemption
- Access to grant support
Contact Region 9 Economic Development District or visit OEDIT.colorado.gov to learn more or check your eligibility.
Contact Information
BDO ZoneCONNECT Webinar
Additional Information
In April 2025, Archuleta County hosted the Forest Health Council for a live demonstration of cutting-edge equipment that transforms forest byproducts into clean energy and high-demand materials. These technologies have the potential to drive local job creation and support critical needs like affordable housing.
More than just a technical showcase, the event highlighted how forest-based industries can play a vital role in building a stronger, more resilient regional economy.
“This is about more than just biomass. It’s about building a more resilient, diversified economy that balances our tourism strengths with sustainable industry and long-term solutions for local living,” said Veronica Medina, Archuleta County Commissioner.
This demonstration marks a turning point for Southwest Colorado’s forest health and bioeconomy future.