FALLS CREEK: The U.S. Forest Service intends to forge ahead with a plan to chip and seal Falls Creek Road and convey an easement to La Plata County.

Deputy Regional Forester Greg Griffith has signed a decision notice and finding of "no significant impact" for the Falls Creek improvement project. An environmental assessment also has been completed, the San Juan Public Lands Center announced.

Falls Creek Road provides access to several private subdivisions and the national forest. The road receives average daily traffic that exceeds its carrying capacity and driving conditions on this segment of road are becoming unsafe, the Public Lands Center said. Use of the road is expected to increase with growth.

A year ago a group of residents along Falls Creek Road objected to Forest Service plans because they said they had not been properly notified of the environmental assessment. And they said the assessment did not properly address affects on wildlife or the area's archaeological remnants.

While the Forest Service's finding is subject to appeal, work is schedule to begin this summer with the county contributing labor and equipment and the Forest Service and Falls Creek Ranch providing the funding.

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ENERGY: La Plata County government is studying ways to conserve energy and resources associated with its daily operations including making buildings more energy efficient.

The county has already done one energy audit, at the state's expense, that shows more can be done to make county owned buildings more energy efficient. Now the county plans to hire a private company to provide more information about ways to conserve energy, how much certain improvements would cost and what energy savings will result.

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NATURAL GAS & YOU: In considering the purchase of a property in La Plata County, it is important to investigate the real estate listing and prior deeds to find out the exact nature of mineral ownership interests. Often, different parties own the surface and the subsurface. This is commonly referred to as "severed estate" land. Most of the property in La Plata has been severed. Previous owners may have sold the mineral rights or granted right-or-ways or easements that are transferred with the property. Because of the long history of natural gas activity in La Plata County severed estates, easements and right-of-ways are common on property in our area.

Well established Colorado law recognizes that access to the mineral estate from the surface estate is necessary in order to develop natural resources. The law provides for access to the mineral estate by allowing "reasonable use" of the surface. The Colorado Oil and Gas conservation Commission (COGCC) rules require surface owner consultation and strongly recommend that a surface agreement be negotiated, in good faith, with a surface owner prior to granting a drilling permit. Over 99% of all wells in La Plata County have utilized surface owner negotiations to decide well locations, road use, road and pipeline construction, fencing, crop reclamation, etc. If a surface agreement cannot be successfully negotiated the COGCC rules allow for a surface bond to be posted with the state. The bond is intended to protect the surface owner from "unreasonable crop losses or land damages from the use of the premises" --not for perceived economic loss associated with mineral owner access.

There are hundred of miles of roads constructed as part of an oil and gas lease after companies negotiated and paid for easements with landowners, if required. Known as "lease roads," they are maintained by the industry but often may be utilized by residents living in the area. Companies do not routinely remove snow if access to facilities is not necessary. Generally, companies do repair road damage caused by construction as soon as weather and equipment availability allow. Most companies are willing to work with residents to make lease road conditions acceptable, however, there is no guarantee that a lease road will be accessible to passenger vehicles.

Due diligence is mandatory when purchasing any property and that's where we can help. Call or email us if we can assist you.

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BLUEGRASS: One of our favorite events is coming up this weekend. The annual Durango Bluegrass Meltdown begins Friday and continues through Sunday. This celebration of spring and bluegrass music is a perfect example of what makes Durango special.

Bluegrass bands and musicians from across the country will be here showcasing their talents. In addition to regularly scheduled performances at the Abby Theater, Diamond Circle Theater and the Durango Arts Center, impromptu sessions will spring up on street corners and restaurants all over town.

Last year Mary and I were in Farquahrts. A couple of guys wandered in, started playing and within minutes the group grew to about 8 pickin' and jammin' and having a great time.

In Durango you never know when a party will break out.

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CONSERVATION EASEMENTS: A conservation easement (or conservation restriction) is a legal agreement between a landowner and a land trust or government agency that permanently limits uses of the land in order to protect its conservation values. It allows you to continue to own and use your land and to sell it or pass it on to heirs. When you donate a conservation easement to a land trust, you give up some of the rights associated with the land. For example, you might give up the right to build additional structures, while retaining the right to grow crops. Future owners also will be bound by the easement's terms. The land trust is responsible for making sure the easement's terms are followed.

Conservation easements offer great flexibility. An easement on property containing rare wildlife habitat might prohibit any development, for example, while one on a farm might allow continued farming and the building of additional agricultural structures. An easement may apply to just a portion of the property, and need not require public access. A landowner sometimes sells a conservation easement, but usually easements are donated. If the donation benefits the public by permanently protecting important conservation resources and meets other federal tax code requirements it can qualify as a tax-deductible charitable donation. The amount of the donation is the difference between the land's value with the easement and its value without the easement. Placing an easement on your property may or may not result in property tax savings.

Perhaps most important, a conservation easement can be essential for passing land on to the next generation. By removing the land's development potential, the easement lowers its market value, which in turn lowers estate tax. Whether the easement is donated during life or by will, it can make a critical difference in the heirs' ability to keep the land intact.

The Colorado Legislature is once again revising the state income tax credit for conservation easements to correct inconsistencies with federal law, and to remove the temptation to use the credit in ways for which it was not intended. The credit, and the ability to covert it to cash by transfer or refund, have made land protection attractive and affordable for landowners at all income levels. Resident taxpayers and nonresident landowners who are members of Colorado pass through entities may claim the credit. However, the provision of the current law that allows an easement donor to claim a credit of 100% of the first $100,000 in easement value has raised the question of whether some easement donors have "donative intent," (which is necessary to qualify for both the federal income tax deduction and the state tax credit.) The same provision has led some landowners to structure a series of easement gifts in order to take maximum advantage of the credit. This practice, while not illegal, has resulted in smaller conservation easements that are harder for a land trust to justify. House Bill 1354, which took effect in January of 2007, eliminates the "100% of the first $100,000" provision, and also clarifies who may claim the credit. It changes the formula for calculating the credit to a simple 50% of the value of a donated conservation easement, and it raises the credit cap from $260,000 to $375,000.

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SPRING MEANS BRUINS: As spring approaches we need to be reminded that warmer weather also brings back our old friend, the black bear. Even thought it's early in the season there have already been 2 bear sightings this year.

Black bears tend to frequent the Durango area when they come out of hibernation in the spring and in early August as they start packing on fat for their winter hibernation. Although they're here for their natural foods such as berries, oak acorns, plants, vegetation and the like they've also found that we humans provide them with a food bounty of our own - be it bird seed, fruit, pet food, barbecue grill scraps and trash.

Normally shy and secretive in the wild, bears have an amazing sense of smell and have learned to associate humans and their homes with food. Sadly, people unwittingly feeding bears NEVER ends well for the bears. Bears that pose a human safety risk or cause property damage in their attempts to get food are captured and moved away. If the same bear causes problems anywhere else after being relocated it is humanely destroyed by wildlife officers. Bumper stickers seen around town proclaiming "Garbage Kills Bears" are all too true.

Don't attract bears to your property through your carelessness with trash and other attractions. Safely store trash during the week and put it out the morning of pickup only. Take down bird feeders when bears are around or make them absolutely inaccessible to bears. Securely store or remove anything else that may attract bears to your home. The responsibility of coexisting with bears lies with all of us that have chosen to live in bear habitat. Be part of the solution and be considerate of the welfare of our bears and your neighbors.

If Mary and I can answer questions or provide more information give us a call or email. We'll be happy to assist you.

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MORTGAGE LENDING: A national tightening of mortgage lending requirements is hurting some local mortgage brokers and prospective home buyers. Durango mortgage brokers say deals have dried up for sub-prime mortgage customers and potential home buyers with marginal credit and no money for a down payment are being shut out of the market. People without good credit and good income are not able to get 100% financing and they're unable to purchase homes that three months ago they could have purchased.

A leading lender of subprime home mortgages, New Century Financial of California, filed for bankruptcy on Monday. More than two dozen subprime lenders have shut down in recent months and many more are scrambling to stay in business.

Subprime loans target borrowers with low credit scores. The loans carry relatively high interest rates but can offer low initial payments. As Realtors we obviously promote home ownership. That being said, we don't believe, however, that individuals with poor credit should be taking on more debt and we don't believe that lenders should be fast and free wheeling in their lending practices. Trouble always follows.

We've been through the tough financial times in the mid 70's and mid 80's. We've seen what happens when lenders lower their standards. Many of todays mortgage brokers were in grade school then.

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WILDFIRE: April is Wildfire Prevention and Education Month. Wildfire is the greatest natural disaster threat in southwestern Colorado. An increasing number of people are building homes in forested areas. Add to that the impacts of drought, insects and climate change and wildfire is an even more likely event.

Spring is the time to be proactive in preparing properties to lessen the impact or damage from wildfire. Two steps to take immediately include creating and maintaining a defensible space around structures and preparing the family for potential evacuation.

Other suggestions include:

* Properly thin and remove trees and shrubs within 30 feet of your home;

* Remove tree branches overhanging the roof;

* Clear roof gutters of leaves, branches and other debris;

* Trim grass and weeds to a low height;

* Store combustible and flammable items safely;

* Keep your chimney screens in place and in good condition;

* Ensure you have an outdoor water supply with a hose to reach all parts of the home;

* Place fire extinguishers in all buildings and be certain they work;

* Make sure your street and address signs are visible and readable;

* Keep tools such as rakes, shovels and hoes accessible in case they are needed;

* Discuss an evacuation plan, do a fire drill and map out meeting points ahead of time.

A home self-assessment, list of fire mitigation contractors, downloadable risk maps, fact sheets and brochures can be found at http://www.southwestcoloradofires.org/.

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SILVER PEAKS: The Durango City Council voted 3-1 Tuesday to approve Hillcrest owner Ed Lewis' plan to turn the first 130 apartment phase of his Hillcrest Apartments complex across from Fort Lewis College into the Silver Peaks Condominiums.

Lewis promoted the subdivision as the creation of affordable housing, with sale prices ranging from $130,000 to 230,000 for the one, two and three bedroom condos. Although the 240 unit Hillcrest Apartments are not considered affordable rentals, the sales pitch appeared to invite criticism from affordable housing advocates who said that there was nothing to keep these prices from rising. Lewis agreed saying, "This is a free market country."

The council also voted 3-1 to redefine the height of downtown buildings, deciding that height will be measured from the sidewalk. The new definition also has a built-in system to step buildings down slopes.

Speaking of our City Council, the voters of Durango opted for change rather than status quo electing three new faces to the council. Congratulations to Leigh Meigs, Michael Rendon and Scott Graham - welcome to the City Council.

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ENERGY CONSERVATION: Tri-State Generation & Transmission Association, which supplies electricity to rural cooperatives such as La Plata Electric, recently initiated a compact florescent light bulb program designed to help co-op member-owners lower their energy bills and realize the benefits of energy efficiency. The power supplier purchased 44,000 CFLs and has distributed 1,000 to each of its member cooperatives including LPEA.

The bulbs distributed by Tri-State use 23 watts of electricity but give the equivalent of a 100-watt incandescent bulb. They consume two-thirds less energy and last up to 10 times longer than an incandescent bulb. Each co-op determines how it will distribute the CFLs to its members. Plans are for LPEA to continue its complimentary give aways at annual meetings and events, and also explore a local CFL study with Fort Lewis College.

Though it may seem a small effort, saving energy does prevent pollution. Using less energy at home ultimately lessens greenhouse gas emissions in the atmosphere. Every CFL can prevent more than 450 pounds of power plant emissions over its lifetime.

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INDIAN LANDS: The reservations of the Ute Mountain Indian Tribe and the Southern Ute Indian tribe, both sovereign nations, are partially located within the boundaries of La Plata County. The Southern Ute Reservations is a checkerboard reservation, which means that there are pockets of private land interspersed among tribal owned property within the exterior boundaries of the reservation.

One question we are often asked is "How can there be privately owned land within the Indian reservation?" Well, in 1895 Congress passed the Hunter Act which gave the Indian the right to homestead 160 acres of land, improve the land and eventually gain vested title. Many of the Southern Utes took advantage of this opportunity. Once vested in title they were free to sell, lease or otherwise convey the land as they chose. As time passed, ownership of these homesteads changed, parcels were sold off and today we have many non-indians living within the boundaries of the Southern Ute Reservation.

An interesting note is, while many Southern Utes elected to "homestead" the land, the Mountain Ute Indian Tribe preferred to continue their communal lifestyle and moved their tribal headquarters to Towac west of Cortez. The Southern Ute Indian Tribe is one of the largest employers in La Plata County and a vital contributor to our economy and community. Tribal headquarters are in Ignacio. For more information concerning tribal lands, contact the Southern Ute Indian Tribe at (970) 563-0100. Or, if you prefer, give us a call or email. We'll get the information you need and get back to you.

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AGRICULTURE: People moving into the Durango area often find the lifestyle to be far different from other parts of the country. For instance, Colorado is a "right-to-farm" state, which means that agricultural enterprises have certain rights and privileges afforded to them, and La Plata County has regulations to support, protect and assist in the maintenance of agricultural production. Residents who choose to live among the many farms and ranches of La Plata County should be aware of these protections. Farmers, particularly during the planting and harvest time, frequently work from early in the morning until late at night running farm equipment such as tractors and combines. These operations cause dust, odor and noise.

Farmers must burn their irrigation ditches to clear them of debris, grass and weeds in preparation for the irrigation season and may need to access their ditch easements through your property. Chemicals are often used in agricultural production. With aerial and ground spraying of crops, there is the potential for small amounts of chemical to drift onto neighboring properties. The La Plata County Extension Office at (970) 247-4355 can supply information on chemicals commonly used.

Irrigation systems have enabled a diversity of agriculture with higher yields than dry land farming. Non-irrigated or untillable lands, both private and public, may be used for grazing animals. Colorado and La Plata County have fence regulations, which means that property owners are reponsible for fencing the livestock "out" of their property. Remember, "fence out, not in." The neighboring pasture that is so lovely in the summer may turn muddy and odorous if it is used for winter feeding. Flies may be a common nuisance around livestock ranches in the summer months.

Living in rural areas has certain unwritten restrictions and "codes of conduct," all based on respect for the land and others, including resident and transient wildlife. Humm, "respect for the land and others," what a wonderful concept. That's why we love living here in the beautiful San Juans. You can live here too. Give us call!

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DENVER: Governor Bill Ritter has signed a bill that will require that 20% of the energy provided by large utility companies come from renewable sources such as wind and solar power and another measure to build the power lines to deliver it.

Officials from Xcel Energy said they will meet the standard by the end of this year and can double the standard by 2020. Governor Ritter said the new energy economy is a win-win for everyone. He said Colorado ranks 4th in the nations in geothermal; resources, 6th for sunshine and 11th for wind, and that the state should capitalize on those assets.

The health of our environment and the health of our economy are tied hand in hand. Every day more people discover this wonderful land and these beautiful mountains. We're fortunate to have leaders with the foresight to protect our environmental security.

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DURANGO GREEN: The City of Durango has received the Tree City USA Growth Award from the National Arbor Day Foundation for the 15th consecutive year.

The award recognizes environmental improvement and higher levels of tree care in Durango and other Tree City USA communities. For the 27th consecutive year, Durango was named a Tree City USA community honoring the city's commitment to its community forest, demonstrated by its tree care department, tree care ordinance, comprehensive community forestry program and Arbor Day observance.

You can be a part of this terrific community. Give us a call or email.

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The city will observe Arbor Day at 10 a.m. May 4 at the Community Recreation Center with the participation of local elementary children.

BLM: The Bureau of Land Management has reopened trails on Animas City Mountain and Grandview Ridge.

This includes all of Animas City Mountain adjacent to the northwest edge of Durango and all Grandview Area trails accessed from U.S. Highway 160 southeast of Durango.

The BLM closed the trails during the winter to provide shelter, privacy and forage to deer and elk. A BLM wildlife biologist said in a news release that the regrowth of vegetation at higher elevations provides food for the animals, allowing officials to reopen trail areas at lower elevations.

As we move into spring take advantage of our beautiful area. Hiking is a tremendous elixir for both the body and the mind.

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MORE ON WATER: In our previous posts we have talked about water rights and the delivery of water by direct diversion from the river or via irrigation ditches managed by ditch companies. This is "adjudicated water," i.e. water rights that have been established by the Water Court. Adjudicated water rights are generally transferred by water stock certificates from the ditch company. Assessments for delivery of adjudicated water are billed annually by the ditch company.

Another type of water is "project water." Project water is water stored at Lemon Dam. This water is measured in acre-feet and stored until it is needed. Lemon Dam stores 40,100 acre-feet of water in a normal year. The project water is delivered via ditches and measured in cubic feet per second (cfs.) Project water rights are usually transferred on the land deed. Assessments for project water are billed with your property taxes.

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SEVERAL FARMERS, idling away a rainy day at the crossroads filling station, got to arguing the merits of various church denominations. All expressed opinions except one old, gray-bearded man who sat quietly whittling but listening attentively.

Finally, someone asked, "What do you think, Grandpa?"

"I'm thinkin'," replied the old man, "that there are three ways from here to the cotton gin. But when you get there, the ginner ain't goin' to ask which way you took. He's goin' to ask, 'How good is your cotton?'"

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WATER FACTS: Approximately 66% of the annual water flows from the Colorado watershed occurs during the late spring/early summer runoff. These water flows cannot be fully utilized by Colorado agriculture, communities and residents unless they are stored in reservoirs.

Vallecito, Lemon, McPhee and Jackson Gulch Reservoirs store spring water flows from the San Juan and Dolores watersheds for year-round beneficial use in southwestern Colorado. Only 3% of the annual water flow occurs during the winter months of December, January and February.

Without water storage in southwestern Colorado, there would not be stable water supplies for our agriculture, communities and residents during either the low-flow inter months or the dryer late summer months.

Colorado Water Table & Water Terms:

One acre foot of water equals...
~ An acre of land covered with one foot of water
~ 325,900 gallons of water
~ Enough water to supply a family of five for one year

One cubic foot per second (cfs) equals...
~448 gallons of water per minute
~1,983 acre feet (af) of water in twenty-four hours of water flow
~ 646,320 gallons of water in twenty-four hours of water flow

One million gallons of water per day (mgd) equals...
~ 3.07 acre feet (af) in one day
~ 1,120 acre feet (af) in one year

Water allocation is normally controlled by ditch companies and measured in cubic feet per second (cfs.) The amount of water represented by one share in the ditch company can vary from company to company. A buyer should to be thorough in their due diligence when purchasing irrigated property to be certain there is enough water for their needs. That's where we can help. If you have questions or would like additional information about Durango real estate, give us a call or email.

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BAYFIELD: Town staff members and affordable housing advocates believe the town of Bayfield's efforts to increase the supply of moderately priced homes could also provide a financial boost to help solve the town's sewage treatment problems.

As we have previously noted, Bayfield's sewage treatment plant has been overburdened for several months, which led town staff in February to impose a strict approval process on sewer taps for new construction. A new plant is expected to cost almost $7 million. Efforts are currently under way to improve the existing system and some success is being seen.

Town Manager Justin Clifton said, "Our number one priority right now is to lift the tap restrictions, and the only way to do that right now is to improve the current facility. The money can only come from tap sales, so were not going to dip into the capital funds or taxpayer dollars to do it." He also said the will propose an increase in sewer tap fees to the town's Sanitation Board.

Stay tuned. This story isn't over yet!

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WATER RIGHTS: We find that one of the most confusing things for newcomers to our area to grasp is Colorado water law. Since the 1860s, The Colorado Doctrine has defined the four essential principles of Colorado water law:

1. All surface and ground water in Colorado is a public resource for benefical use by publicagencies and private persons.

2. A water right is a right to use a portion of the public's water resources.

3. Water rights owners may build facilities on the lands of others to divert, extract or movewater from a stream or aquifer to its place of use.

4. Water rights owners may use streams or aquifers for the transportaion and storage of water.

Practical application of The Colorado Doctrine means that water can be moved from where it is found to where it is needed based upon a priority system of "first in time, first in right." People, with water rights, who live along the river usually have diversions from the river to their lands. Away from the river, landowners are dependent upon irrigation ditches to deliver their water.

The irrigation ditches are mutually-owned non-profit corporations established to deliver water to owners. Each ditch company has a board of directors, a secretary to handle the office business, and a ditch rider who controls the actual water flow. Operations are based on the by-laws of each ditch company and by Colorado corporate law.

We'll discuss more water facts and issues in future postings. In the meantime, if you have questions or would like additional information about Durango real estate please give us a call or email.

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REVERSE 1031 EXCHANGE: The IRS code also provides for a "reverse exchange." As a matter of fact, Mary & I just completed a reverse 1031 exchange. The basics are the same as a regular 1031 except in a reverse the individual acquires the new property up front. From the day of closing you have 45 days to announce the property or properties that will be relinquished (sold) and 180 days to complete the sale to remain within the "safe harbour" period. The primary difference in a "regular" and "reverse" 1031 exchange is in a regular exchange you MUST complete the exchange within the 180 day safe harbour period. A reverse exchange still has the 180 day safe harbour period but experts tell me, to the best of their knowledge, the IRS has never looked at a reverse exchange that went beyond the 180 day period.

This should not be construed as providing tax or legal advice. If tax or legal advice is needed, please consult your attorney or accountant. Or, we can put you in touch with a "Qualified Intermediary" in Durango.

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TAX DEFERRED EXCHANGES: Internal Revenue Code Section 1031 states: "No gain or loss shall be recognized on the exchange of property held for productive use in a trade or business or for investment if such property is exchanged solely for property of like kind which is to be held either for productive use in a trade or business or for investment." This code provides that capital gains taxes are deferred when investment real estate is exchanged rather than sold.

Over the long term, acquiring real estate through exchanges is an excellent method of building wealth. Section 1031 allows continued exchanges, enabling the owner to increase equity without the burden of capital gains tax. We've seen a lot of real estate investment dollars move to the Durango area via 1031 Exchanges.

Important items involved in a 1031 Exchange:

- Both your old property and new property must qualify as 1031 property.

- You have 45 days after the closing to prepare a list of properties you want to buy.

- You have 180 days after the closing to acquire one or more of the properties on your 45 daylist.

- You may NOT touch the money. Typically the money is held by a "Qualified Intermediary"

- The holder of title to both your old property and your new property have to be the same.

- In general, you must equalize the debt on your old and new property.

This should not be construed as providing tax or legal advice. If tax or legal advice is needed, please consult your attorney or accountant. Or, we can put you in touch with a "Qualified Intermediary" in Durango.

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SOLAR POWER: Solar panels on the roof might be an outside sign of environmental consciousness, but most people can do a lot more good in humble ways, a solar power expert says.

"Where homeowners will do the most good is investing in energy efficiency," said Diane Mee of Hesperus, who helps her husband, Art Evans, run Sunland Renewable Energy Systems. The company installs solar electricity and hot-water systems.

She recommends investing in insulation and better windows. And she rails against "phantom loads" - devices that consume power all day, even though they're turned off. Televisions draw power as they wait for a signal from the remote control. Microwaves, coffee pots, stereos, computers and phone chargers all draw power too. Together they add up.

"We can shut down a couple of coal power plants if everybody in the country got rid of their phantom loads," Mee said.

Of course, that's not going to happen but if each of us were to work towards just conserving a little it will help.

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HOME-AID: A Denver based homeless assistance group is looking to expand into La Plata County with the help of local builders and the La Plata County Regional Housing Authority.

HomeAid Colorado facilitates agreements between builders and social-care providers to provide housing for the temporarily homeless. Volunteers of America and Housing Solutions of the Southwest are the proposed local service providers, with Emil Wanatka with Timberline Builders spearheading the efforts of local homebuilders.

"This is a wonderful opportunity to have a public-private partnership," housing authority Executive Director Jennifer Lopez said in a news release. "I think having the support of a local homebuilder working with Housing Solutions to explore options for expanding transitional housing options is an exciting opportunity for the community."

In the release, Lora Sholes, homeless services manager for Housing Solutions, said her agency can handle only half of the cases in a year compared with the need for such services.

"We really could use additional transitional units in La Plata County," Sholes said. "On any given day, there are 30 families waiting to enter the program."

Sholes said her program aims to assist in-need families in their transition from homelessness to self-sufficiency within two years.

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RIDE SHARE: Alternative transportation in La Plata County got a leg up this week. A regional website designed to connect individuals who need rides with individuals willing to share their vehicle is now up and running. Known as the Ride Share Program, the service actually began in the late 1990s but has been dormant for the last several years.

The Safe Roads Coalition, a grassroots La Plata County group that promotes positive relationships among all road users, will monitor the website that will serve people throughout Southwest Colorado.

"With higher gas prices, crowded roads and a more dispersed population, we know there is a demand for this service," said Kendra Holmes, a Safe Roads Coalition member.

The website http://www.freerideshare.org/ contains a simple form that will match your transportation inquiry to other users. No personal information will be made available, and e-mail addresses will link potential riders. Work is underway to help seniors and those without Internet access to use the program.

Partners in the program include KDUR Public Radio, Region 9 Economic Development District, CDOT, San Juan Resource Conservation District, and the Safe Roads Coalition.

Ride Share is but another example of how the citizens in our community work together to keep Durango the best place to live in the U.S.

DURANGO: Durango earned a new honor this week. The city has been added to the National Trust for Historic Preservation's 2007 list of America's Dozen Distictive Destinations." The list honors "lovingly preserved" communities in the United States.

"This is truly a community award," said Rod Barker, owner of the Strater Hotel, "Dozens and dozens of people have worked and continue to work tirelessly to sustain Durango and ensure that it remains a very special place. Congratulations, Durango - you all earned this award."

Durango was selected from 63 destinations in 27 states, For Durango, representatives from the Durango Business Improvement District/City of Durango - Barker, Bob Kunkel and Indiana Reed - assembled the application. The team received the news in late February but it was "embargoed" from sharing it with the town until the national announcement on March 7.

In addition to scenic beauty, Durango was cited for its vibrant, historic downtown, including preservation of Victorian structures and efforts to keep downtown economically viable. The Trust also applauded the Durango & Silverton Narrow Gauge Railroad and the Ancestral Puebloan heritage in the region, as well as the abundant outdoor, recreational activities.

"More than 100 years ago, the lure of gold and silver attracted the earliest prospectors to Durango," said Richard Moe, the group's president. "Today, visitors come to this spectacular, unspoiled mountain town because Durango had the good sense to hang on to what makes it so special. The result is a vibrant community that offers travelers an ideal retreat."

You can be a part of this wonderful community. To learn more visit our websites http://HomesInDurango.com and http://DurangoRealEstate.biz.

FORECLOSURES: The number of foreclosures started in Colorado in 2006 is more than double the levels recorded in 2003 according to the Colorado Division of Housing. Most of the foreclosures are in the more heavily populated Front Range counties.

The story is different on the Western Slope, where Mesa and La Plata counties saw foreclosures decline last year compared to 2005. We had 50 foreclosures in 2006 in La Plata county, a decline of 15.3 %. This is another indication that our local economy remains strong.

BAYFIELD: Once again the Bayfield town trustees have restricted the issuance of new sewer taps. Faced with an overburdened sewage treatment facility, the restrictions were put in place at the February 22 Town Board meeting and avoided a moratorium being imposed by the Colorado Department of Public Health.

Bayfield's current sewage treatment facility has been operating at maximum capacity since last summer and the town can no longer freely issue sewer taps for new construction. In a move that makes absolutely no sense the town will continue to issue building permits which will allow developers to adhere to development timetables, but with no assurance that the sewer taps will be approved. Self-regulation by the town will allow a small number of sewer taps to be awarded after a careful screening process, but many builders will be taking a gamble when they apply for a building permit. It's possible for a builder to receive a building permit and construct a house, but then have to wait as long as 18 months to receive a Certificate of Occupancy; all the while the interest clock is ticking. Explain that logic.

For information about Durango real estate, give us a call or visit http://HomesInDurango.com or http://DurangoRealEstate.biz.

RIVER TRAIL: La Plata County commissioners Tuesday approved a $100,000 supplement to the 2007 budget for a 2.3 mile extension of the Animas River Trail to Three Springs development. The supplemental funds will be added to a multi-agency effort to ented the trail from the point where it currently ends at River Road near Home Depot.

The SMART 160 Trail is a collaborative effort among Trails 2000, the Colorado Department of Transportation, the Bureau of Land Management and the governments of La Plata County and the City of Durango. SMART is an acronym for safe, multi-modal, aesthetic regional transportation.

The expansion work is estimated to cost just less than $2 million. Laurie Blanz, Region 5 Planner for CDOT, said that if the federal funding comes by June or July as expected, construction of the 2.3 mile trail extension should be completed by September 2008.

To learn more about Durango real estate and our wonderful area visit our websites:

http://www.HomesInDurango.com or http://www.DurangoRealEstate.biz

DURANGO MOUNTAIN RESORT: We had an opportunity last week to tour the new townhouse/condominium developments under way at Purgatory. The mountain is booming! From Engineer Village, Black Bear Townhomes and Cascade Creek to the Alpenglow and the Lodge at Purgatory construction is everywhere. According to sources at the mountain sales have been very strong.

Particularly impressive was architectural rendering of the new lodge and plaza area. The lodge is a multi-story structure with retail shopping and dining on the main level, time share condominiums on the mid levels and full ownership units on the top level. A exterior heated pool with a heated deck is only one of the extravagant features planned. The new plaza will be landscaped with a running stream down the center. From what we saw and were told the new lodge will be unlike anything Durango Mountain Resort has seen.

Impressive, very impressive. If you're thinking about a mountain vacation property or even a full time residence, give us a call. We'll be glad to show you why we're excited about Durango real estate. To learn more visit our websites : http://www.HomesInDurango.com or http://www.DurangoRealEstate.biz

THE WEB: A study in 2006 by the California Association of Realtors provides unequivocal evidence that the Internet approach to buying a home is now the overwhelmingly consumer favorite.

For example:

** 92% of Internet buyers found their agent on a web site; 63% found them through an Internet search engine; 0% of Internet buyers found their agent through brochures, flyers, yard signs or mailers to their home.

** In 2000, 28% if people said that they used the Internet as an important part of their home buying and selection process. In 2006, 70% said they did.

** 86% of home buyers started using the Internet as part of their process before they started looking for a specific home; the other 14% did after they started but before that contacted a real estate agent; that means that 100% of buyers surveyed started looking at homes first, agents second.

** 69% of Internet buyers said response time was extremely important. 83% of those buyers chose email as their favored communication method with their agent. 0% chose "in person."

** Internet buyers were more satisfied with their agents: 4.3 to 3.3 for traditional buyers, on a scale of 5 where 5 is "exceeded expectations."

Mary & I recognized in 1998 that the real estate industry was changing. (Something that many agents, to this day, haven't realized.) The consumer had not only the desire but also the ability to be in control. By embracing and developing this technology we are able to provide a superior product to both buyers and sellers in helping them with their needs in Durango real estate.

In viewing our web stats, I can see that we have individuals in Germany, Korea, Taiwan and Great Britain regularly visiting our websites http://www.HomesInDurango.com and http://www.DurangoRealEstate.biz looking at real estate in Durango. It's amazing!

Drop us an email if we can help.

BAYFIELD: The Trustees at Bayfield's Town Board meeting denied approval of a revised sketch plan for the Dove Ranch Subdivision, which would include about 300 units in a high density residential plan north of U.S. Highway 160 and east of County Road 501.

In explaining his reason for voting against the project, board member Daryl Yost said, You want to see city living in Bayfield, this would be city living. I'm just against any project that's this high in density."

Our view - if you want affordable housing higher density is part of the answer.

Visit http://www.HomesInDurango.com and http://www.DurangoRealEstate.biz for more information about Bayfield and the Durango area.

BAYFIELD: The town of Bayfield has grown in recent years, but an unpleasant reality may force things to slow down.

Ed Morlan, speaking before the Town Board, said that the town's sewage treatment plant reached its capacity in December and there's only one way to fix it. "We need a new plant, " said Morlan, chairman of the Bayfield Sanitation District. Morlan said plans are under way to construct a new sewage treatment plant near the high school, but only $2 million of the $7 million needed for construction has been raised. About $1 million was raised through tap fees and the other $1 million comes from a recent grant from the State Department of Local Affairs' Wastewater Enhancement and Treatment Initiative. He and the sanitation district board are counting on the remaining $5 million to come from a state revolving loan fund that targets communities in need.

ECONOMY: When looking at the data available for 2006, the La Plata County economy fairs very well. According to the Bureau of Labor Statistics, the annual average wage in our count in 2005 was $32,163, compared with the state average of $41,601 ( a little more that 75%.)

The latest available unemployment rate locally is 2.9%. Although this is considered very low, which is typically seen as a good thing, it also indicates that some local employers may have trouble finding workers; that might put upward pressure on local wages. Those industries that pay the highest wage in the county are mining (including oil and gas extraction), followed by transportation and warehousing, information and wholesale trade.

Major employers in La Plata County include firms in the construction industry, service, retail and government. These industries, which include tourist activity, continue to drive the local economy. The 2006 data for retail sales, passengers both using the Durango-La Plata County Airport and the Durango/Silverton Railroad, visitors to Mesa Verde and lodger's tax revenue all show increases over 2005.

Agriculture still remains an important contributor to our economy. Hay production and cattle and sheep ranching remained strong. Other contributors to our economy are Fort Lewis College, the construction industry and the real estate industry. Residential real estate prices continued to increase in 2006, but it appears price increases are flattening out. With the development progressing at Three Springs, expect construction to remain strong.

Finally, bank deposits, which are an important indicator of the ability of financial institutions to make loans, continued to increase in La Plata County. According to the FDIC, the first six months of 2006 showed a 16.7% increase over the same period in 2005.

Please feel to contact us for additonal informaton regarding Durango real estate and our economy or visit our websites http://www.HomesInDurango.com and http://www.DurangoRealEstate.biz.

MERCY: Representatives of Mercy Housing, Mercy Regional Medical Center and other involved dignitaries held a groundbreaking ceremony Tuesday to celebrate the Pinon Terrace affordable rental housing project adjacent to the new hospital in Grandview. Pinon terrace will be built on a 4 acre parcel donated by Mercy and will provide housing for 66 families. Dick Banks is the CEO of Mercy Housing, a national organization founded by Sisters of Mercy, who also founded Durango's hospital of the same name. Banks said most of the families who will live in Pinon Terrace will have annual incomes in the $15,000 range, which is even below the 60 percent of median income required to qualify for affordable housing. Pinion Terrace should be completed by the end of the summer.

If you have questions about Durango real estate or our area in general, please call (800) 834-8445 or visit our websites http://www.HomesInDurango.com and http://www.DurangoRealEstate.biz.

FORECAST: After bottoming in the fourth quarter of 2006, existing home sales nationally are expected to gradual rise through 2007 and into 2008 according to the latest forecast by the National Association of Realtors.

David Lereah, NAR's chief economist, said annual totals for existing-home sales will be fairly comparable between 2006 and 2007. " We have to keep in mind that we were still in boom conditions during the first quarter of 2006 with a high sales volume and double-digit price appreciation," he said. "We are starting 2007 from a relatively low point, so even with a gradual improvement in sales it'll be pretty much a wash in terms of annual totals. The good news is that the steady improvement in sales will support price appreciation moving forward."

Even better news is that, as existing-home sales improve in the major markets, our Durango real estate economy can only get stronger. We have numerous clients ready and anxious to purchase a home in the Durango / La Plata County area just as soon as they are able to sell their existing residence.

Stay abreast with the Durango real estate market on our websites http://www.HomesInDurango.com and http://DurangoRealEstate.biz.

RADON: Radon is an odorless, radioactive gas resulting from the natural decay of uranium. Uranium occurs in rock (particularly granite), soil and water. The gas is dispersed into the air outdoors but is suctioned into closed buildings and homes the same way air seeps in. It enters a home through concrete and miniscule cracks in foundation floors or walls, through hollow walls and openings around floor drains, pipes and sump pumps. It also enters in the water, particularly a well-water source.

The better insulated the home, the more the radon seeps in, is trapped and builds up to toxic levels. The amount of radon in the soil is determined by the geology under and near the home. Colorado homes are ranked at high risk for radon by the EPA.

Testing for radon is simple and inexpensive. The short term test involves hanging a postcard size envelope in a designated area for 3 to 5 days; then seal and mail. Results are sent to you within a week. Mitigation is recommended if the level is greater than 4. Elevated levels of radon in homes is documented as the number 2 cause of lung cancer. If you don't know the level in your home, we recommend a short term test.

WATER: Unable to persuade the city of Durango to reduce the amount of water it wants for a kayak course on the Animas River, the Southwestern Water Conservation District moved last week to acquire water rights itself.

By a 5-1 vote, the district board members authorized its attorney and engineer to ask for 30,000 acre feet of water annually to satisfy the needs of users upstream who don't have court decreed water rights , as well as to meet future demands.

About 20,000 acre feet presently are used annually by those upstream who already have court ordered water rights.

Water rights in southwest Colorado are a contentious issue. A number of entities, including public and private groups, filed statements of opposition after Durango filed its application in February. It was hoped that negotiations between the district and the city would make a scheduled court trial in May unnecessary. The water district's action apparently is in self defense.

Visit http://www.HomesInDurango and http://DurangoRealEstate.biz for additional information regarding Durango real estate.

COMMUNITY SPIRIT: The motto of the Manna Soup Kitchen is "In a comunity of plenty, no one should go hungry." On Christmas Day, that motto never rang so true. Nearly 300 people gathered at the ktichen on Avenida del Sol for an old fashioned holiday feast and Christmas party.

The menu included ham, scalloped potatoes, green beans, salad rolls and a myriad of desserts all donate by area restaurants, stores and individuals, said Ruthie Wilrick, the program director of the Manna Soup Kitchen. Wilrick said that an army of volunteers numbering about 70 started at 8:30 a.m. wrapping presents, setting up tables and cooking food, getting it all finished in time to open the doors to the public at 11:30 a.m.

Manna's Board President Jim Heasley said that Monday's feast was just a high profile example of what goes on every day at the kitchen. "It's a total ourpouring of the community - small townism at its best," he said. "We provide everyone who wants one a meal, every day of the year. And you don't have to be homeless; you just have to be hungry."

Durango, it's a special place to live. Call us if we assist with your Durango real estate needs. To explore more of Durango visit http://www.HomesInDurango.com and http://DurangoRealEstate.biz.

SNOW: Snowfalls like that which hit our area earlier this week create all kinds of problems for rural drivers and homeowners, but nothing like those encountered by the county workers whose job it is to keep the roads clear.

There are more than 600 miles of La Plata County roads to plow, so officials with the county's Road and Bridge Department have to make decisions about which roads get plowed and how often. As the road maintenance superintendent for the county, Doyle Villers is usually the man with the final say.

Villers said the county has indentified county roads 240 (Florida Road), 501, 141 (Wildcat Canyon Road), and 310/318 as the main arterials that receive top priority during winter storms. Those roads are paved and sanded as often as conditions dictate by the county's 10 large dump/plow trucks, whose drivers work 12 hour split shifts to clear roads 24 hours a day, often covering a combined 1,500 miles during a given storm.

After the main roads are addressed, Villers said motor graders attack the gravel roads that are the access to many rural subdivisions. Lower volume roads, in general, are not plowed until major roads have been cleared.

Villers said the road crews' task is to clear snow from the center line of a road to the side, and that often can affect cars, mailboxes and driveways that are in the path of the snowplows. The right of way on these roads is 30 feet from the center line, and the county is not responsible for any damage to objects inside that right of way. The county recommends that residents never park in the right of way when snow is expected.

As we have seen this week from the storm that hit the front range, keeping the roads clear can sometimes be a very difficult task. We are very lucky to have not only dedicated, hard working county road crews but also the CDOT crews that maintain our highways. Thanks guys!

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RECIPE FOR A MERRY CHRISTMAS: Take the crisp cold of a December night, add two generous parts of snow, stir in air so clear it tinkles. Into a generous heart, mix the wonder of a little girl, the sparkle of a young boy's glance, the love of parents, and set gently before the chimney side. Add the lightest touch of a reindeer's hooves, a sprig of holly, a scent of fir. Set the mixture to rise in the warmth of a dream of good will to men. It will be almost ready to serve when it bubbles with warmth and good feeling. Bedeck with the light of a star in the East, garnish with shining balls of gold, silver and red. Serve to the tune of an ancient carol in the middle of the family table. This recipe is sufficient for all the men and women your will ever meet.

Mary and I wish all of you the best in this holiday season. May the joy and peace of Christmas be yours.

PURGATORY: Discriminating customers may be on the horizon for Durango Mountain Resort. Purgatory has been selected as one of the top 20 resorts in North America in the December 2006 edition of Conde' Nast Traveler.

The list was selected by readers who were invited to evaluate 104 North American ski resorts that they had visited in the past three years, and rank the resorts on terrain and conditions, lifts and lines, town ambience, dining and apres ski/activities. Only resorts that received a required minimum number of responses were eligible for inclusion in the rankings.

Purgatory received the 20th spot on the list, receiving an overall score of 64.3. Terrain and conditions were the highest ranked area for the resort with a score of 71.9, with town ambience close behind with 71.0 and lifts and lines rounding out the top three with a score of 68.8

For more information about Durango real estate visit http://www.HomesInDurango.com and http://www.DurangoRealEstate.biz. Check out the Mountain CAM at Purgatory.

HOW MUCH HOME CAN YOU AFFORD? There are two ways to determine how much you can afford to spend on a home. You can calculate a general estimate for what you may be able to afford, or you can work with your banker, lender or realtor to be preapproved for a specific loan amount. Here, you can make two estimates to help you investigate home buying, check out the homes you can afford and plan for down payment.

You should be preapproved for a loan when you are serious about home buying. Being preapproved tells you exactly what you can afford and helps to speed up the buying process. It establishes stricter (or sometimes more generous) limits on what homes you should be looking at.

Estimate 1: Calculate the total home cost you can afford.

To calculate the total home cost you may be able to afford, multiply your gross annual income by 3.5.

For example:

$50,000 X 3.5 = $175,000.
$75,000 X 3.5 = $262,500.
$100,000 X 3.5 = $350,000.

This is a rough calculation of the amount you might qualify for, assuming a 20 percent down payment and that you do not have a lot of debt.

Estimate 2: Calculate the monthly mortgage payment you can afford

To calculate the monthly mortgage payment you may be able to afford, multiply your gross monthly income by 0.38 and subtract your current monthly debt payments. Debt payments include student loans, car payments, credit card and other credit payments.

For example:

Gross monthly income is $4,000 ($48,000. divided by 12)
Monthly debt: $750.
$4,000 X .38 = $1,520
$1,520 - $750. = a mortgage payment of $770

The .38 ratio is used when you can make a 20 percent downpayment on your home. With a downpayment below 20 percent of the purchase price, reduce the ratio to .33. As you can see, the amount of debt you have can greatly reduce the maximum monthly payment you may qualify for. In addition to saving for a monthly payment and closing costs, you may also need to reduce debt. (As a general rule, you should pay down debts before saving for a down payment. This strategy will also dramatically reduce your total interest costs.)

We recommend visiting with one of our local loan officers to determine precisely how much you can afford and which loan program best works for you. Give us call. We'll be glad to give you names and numbers.

More information can be found at http://www.HomesInDurango.com and http://DurangoRealEstate.biz

HOME PRICES: According to the Colorado Association of Realtors Colorado home prices have come down .7 percent in the third quarter from a year ago, however they are still higher than 2004. Home sales have dropped two straight years when comparing the single-family unity sold in the 3rd quarters of 2004 (6.5%) and 2005 (17.2%). However Lawrence Yun, senior forecast economist for the National Association of Realtors, says there are brighter day ahead saying elevated inventories will be worked off over the next two quarters, wages are rising at better than 4 percent and jobs continue to be created and with home prices falling, the demand will inevitably pick up. Yun predicts the low point will be the fourth quarter of this year. "Sales will then steadily climb and with it will come strengthening home prices. In summary, the housing slump is nearly over."

Durango has fared much better than the rest of the state. The number of 3rd quarter home sales is down 20.9% compared to 2005 but our median price has increased a whopping 32.0%.

Durango real estate - please call (800) 834-8445 if we can help or visit http://www.HomesInDurango.com or http://www.DurangoRealEstate.biz.

CONSERVATION: Private U.S. landowners have set aside land comparable in acreage to the state of Georgia for conservation purposes.

A new tally of U.S. private land conservation efforts finds a boom in the number of smaller, local land trusts, particularly in the West, seeking to compensate for the 2 million acres of farms, forests and open spaces developed nationally each year.

Nature areas, wildlife habitat, open spaces, waterways, wetlands and other lands conserved through private means rose to 37 million acres - roughly the size of Georgia - from 24 million acres conserved as of 2000, the Land Trust Alliance said Thursday.

http://www.HomesInDurango.com and http://DurangoRealEstate.biz -Your Durango real estate information source.

TEXAS: We've just returned from our annual pilgrimage to Texas to see the grandbabies. The only positive thing about the trip (other than the grandkids) is it serves as a reminder that our Durango area is truly a special place to live.

The first morning we stepped out of the hotel with the pups, all you could smell was automobile exhaust. We were reminded that the haze that lay over the city was not fog, it was pollution. Cars and people, people and cars - and everywhere, lots of noise.

Happiness is Texas in the rear view mirror. On the return trip home, as we dropped down into Bloomfield, the snow capped La Platas let us know we were home and the tensions began to ease. We were welcomed by a beautiful blanket of snow.

Durango, you're special. See why at http://www.HomesInDurango.com and http://www.DurangoRealEstate.biz.

WILDLIFE: According to a recently released insurance survey, collisions between automobiles and deer is an increasing problem on U.S. roads. Deer related car crashes, including wrecks involving elk and moose, are up almost six percent compared to last year's deer season.

Deer collisions become more frequent during the fall and winter due to animal migration and the mating season, which typically occur from October through December.

About 1.5 million deer/elk vehicle collisions happen each year in the United States, according to the National Highway Traffic Safety Administration. Those accidents cause about 150 deaths and $1.1 billion in property damage annually, according to NHTSA.

In Colorado, the Highway 160 corridor from Mancos to Pagosa Springs leads the state in the number of animal related crashes. Also, as the elk leave the high country and settle into the Animas Valley for the winter, automobile/elk collisions increase significantly. Increasing deer and elk populations together with continued encroachment into their natural habitat have added to the risk.

Drivers should slow down and use high-beam headlights as much as possible and be aware that deer and elk travel in groups. Where there is one, there are probably others close behind. "Deer whistles," devices that attach to the vehicles' front bumper have been shown to be ineffective. The best prevention is to use a little "common sense" when on the road.

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PRICING: One of the more difficult things in working with a homeowner in the marketing of their property is arriving a proper offering price for the home. It's hard, and sometimes impossible, for the owner of a home to emotionally detached him or herself from the years of memories, personal experiences and, often, just lots of hard work that they put into the property.

There are many, many reasons why homes are put on the market. We see homeowners downsizing after the children are grown. Medical conditions sometimes place individuals in situations where the sale is a must. Selling a home to retrieve equity to supplement retirement is also common.

One thing is true in every situation. The amount of money needed for retirement, medical expenses and the like has no bearing on the value of the home. A homeowner who insists on pricing the home based on current or future financial needs rather than true market value is only worsening the situation.

It's our job, as professional brokers, to assist the homeowner in analyzing current market conditions, reviewing comparable sales and determining the highest and best price for placing the home on the market.

Our clients have found our websites http://www.HomesInDurango.com and http://www.DurangoRealEstate.biz to be very beneficial in keeping up with the Durango real estate market.

DAAR: The Durango Area Association of Realtors donated $40,000 to seven non-profits, a $10,000 increase from 2005. The organizations receiving funding included; La Plata County Community Development Corporation, Southwest Center for Independence, Habitat for Humanity, Volunteers of America-Durango Community Shelter, Mercy Housing Colorado, Housing Solutions for the Southwest and Colorado Housing, Inc.

This money will help with new building projects as well as supporting low-cost rental units and helping families in need of emergency housing.

The Colorado Association of Realtors Housing Opportunity Foundation donated $639,000 this year to various housing organizations across the state. Grants ranging from $385 to $100,000 were distributed to 85 agencies, and the funding will support homeless programs, crisis shelters, construction of affordable housing, down-payment assistance and more.

It feels good to be involved in an industry that not only recognizes the needs of the communities we serve but is also willing to contribute both time and assets to those in who need assistance.

To learn more about Durango and our wonderful area you are invited to visit http://HomesInDurango.com and http://www.DurangoRealEstate.biz.

MORE STATS: Of the homes sold in the 3rd quarter the average number of days the properties were on the market were:

In Durango - 132, in Bayfield - 139, in Ignacio - 56 and 130 in the county.

Follow the Durango real estate market at http://www.HomesInDurango.com and http://www.DurangoRealEstate.biz.

MORE ON PRICES: According to numbers released yesterday by the Durango Area Association of Realtors, Durango home prices are up 11 percent compared with a year ago, but home sales have fallen 39 percent.

The median price of a Durango home was $436,050 in the third quarter - up $44,050 from the same period in 2005. But only 43 homes sold in the third quarter compared with 70 a year ago.

Durango's newest median price is $12,000 lower that last guarter's record high of $448,000. The median price of a Bayfield home in the third quarter was $306,000 - up 13 percent from a year ago. But home sales dropped 57 percent - from 23 to 10.

It's important to understand that "Median Price" is the point where the number of sales below that point equals the number of sales above that point. "Median Price" is not an average price.
But it is good indicator of economic trends. If more higher price homes sell, the median price will go up and vice versa.

We are seeing an increase in buyer activity in the properties priced below the current median. If the trend continues, our median price will drift downward. In our opinion, moving towards a more balanced market bodes well for the Durango real estate economy.

Daily traffic is increasing on both of our websites http://HomesInDurango.com and http://www.DurangoRealEstate.biz

NEW HOME PRICES: The Commerce Department reported that the median price for a new home sold in September declined by 9.7 percent from September, 2005 providing evidence of the slow down in the once booming housing market.

It is important to recognize that, here in Durango, we do not have the mega tract builders; Pulte, DR Horton and the like. In major markets these huge corporate builders create large inventories of product. When sales begin to slow, price adjustments and sales incentives reflect a downward turn in pricing. The resale market cannot compete with new home purchase incentives offered by builders. As a consequence, the housing market, overall, becomes depressed until inventories are depleted.

Locally, our inventory of new spec homes is relatively small with the majority being in the Bayfield developments of Dove Ranch, Mesa Heights, Sunrise Estates and Forest Lakes. Our builders are, by and large, sole proprietors who are active in the actual construction process. The product they produce is generally high quality with more of a custom look and feel. While our market has slowed due to the problems in the major housing markets, it doesn't look our prices are coming down measurably.

Learn more about Durango real estate at http://www.HomesInDurango.com and http://DurangoRealEstate.biz

CONSERVATION EASEMENTS: A conservation easement (or conservation restriction) is a legal agreement between a landowner and a land trust or government agency that permanently limits uses of the land in order to protect its conservation values. It allows you to continue to own and use your land and to sell it or pass it on to heirs.

When you donate a conservation easement to a land trust, you give up some of the rights associated with the land. For example, you might give up the right to build additional structures, while retaining the right to grow crops. Future owners also will be bound by the easement's terms. The land trust is responsible for making sure the easement's terms are followed.

Conservation easements offer great flexibility. An easement on property containing rare wildlife habitat might prohibit any development, for example, while one on a farm might allow continued farming and the building of additional agricultural structures. An easement may apply to just a portion of the property, and need not require public access.

A landowner sometimes sells a conservation easement, but usually easements are donated. If the donation benefits the public by permanently protecting important conservation resources and meets other federal tax code requirements it can qualify as a tax-deductible charitable donation. The amount of the donation is the difference between the land's value with the easement and its value without the easement. Placing an easement on your property may or may not result in property tax savings.

Perhaps most important, a conservation easement can be essential for passing land on to the next generation. By removing the land's development potential, the easement lowers its market value, which in turn lowers estate tax. Whether the easement is donated during life or by will, it can make a critical difference in the heirs' ability to keep the land intact.

The Colorado Legislature is once again revising the state income tax credit for conservation easements to correct inconsistencies with federal law, and to remove the temptation to use the credit in ways for which it was not intended. The credit, and the ability to covert it to cash by transfer or refund, have made land protection attractive and affordable for landowners at all income levels. Resident taxpayers and nonresident landowners who are members of Colorado pass through entities may claim the credit. However, the provision of the current law that allows an easement donor to claim a credit of 100% of the first $100,000 in easement value has raised the question of whether some easement donors have "donative intent," (which is necessary to qualify for both the federal income tax deduction and the state tax credit.) The same provision has led some landowners to structure a series of easement gifts in order to take maximum advantage of the credit. This practice, while not illegal, has resulted in smaller conservation easements that are harder for a land trust to justify. House Bill 1354, to take effect in January of 2007, eliminates the "100% of the first $100,000" provision, and also clarifies who may claim the credit. It changes the formula for calculating the credit to a simple 50% of the value of a donated conservation easement, and it raises the credit cap from $260,000 to $375,000.

Source: La Plata Open Space Conservancy - 2005 Annual Report.

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BOULDERS: The developer of Boulders at Escalante, the 37 unit townhome development behind Home Depot is facing legal troubles.

In April, the developer ordered the contractor, Kurt Geary, to stop construction, apparently over financial issues.

Geary is now suing the developer for breach of contract and failing to make proper payments for labor and services. In the lawsuit, Geary alleges that he entered into a contract with the owner in May 2004 for services to be performed, and that the contract has not been fulfilled. Before the term of the contract was completed, Geary was order to stop work in April 2006.

The developer agreed to include four attainable units required by the City of Durango, but have since made a formal request to the city seeking exemption for building those units. The city has issued 10 certificates of occupancy at Boulders out of a total of 37 planned units.

Our experience with Boulders at Escalante has not been good. Last year one of our clients submitted an offer on a unit under construction. We attempted for weeks to obtain a response from the developer. No response, none. Our client finally gave up and purchased another property. In retrospect, given the current happenings, we're glad he did.

Keep track of real estate happenings at www.HomesInDurango.com and www.DurangoRealEstate.biz.

100 YEARS AGO: From the Herald - "A considerable movement in Animas City real estate is imminent. The Herald has information from reliable sources that several large transfers of lots will be made in the near future ... and it would not be surprising if quite a boom were to result."

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