Lincoln County leaders and NM lawmakers talk economic impact, building back from fires and floods

A view Aug. 20 of Alto, N.M., which was hit hard by the South Fork Fire in mid-June (Photo by Danielle Prokop / Source NM)

Residents, businesses and local governments in the Ruidoso area continue to struggle with the financial toll of summer wildfires and floods, leaders and experts told lawmakers Tuesday.

The Legislative Finance Committee gathered at the Inn of the Mountain Gods on Mescalero Apache land to hear from local leaders and experts on the aftermath of two wildfires that ravaged the Lincoln National Forest in June.

According to Ruidoso Mayor Lynn Crawford, over 900 homes were destroyed in the South Fork and Salt fires. In mid-July, state officials reported to FEMA that 856 homes were destroyed. Crawford said over 230 homes were subsequently destroyed by flooding.

This number represents both primary homes and secondary or vacation homes, but not outbuildings such as sheds on the same property. Officials estimate that about one-third of homes lost were primary residences.

“We don’t want to add a financial tragedy to that, too,” Crawford said. “We’re already experiencing that in some fashion.”

He noted that revenue for businesses in the area needs to be maintained, not only for the benefit of business owners, but for the village itself, which makes money from gross receipts taxes.

“Revenues are off over 70%, in just an average. Some experience much greater, some less,” Crawford said.

It was brought to lawmakers’ attention that the Inn of the Mountain Gods on the Mescalero Apache Reservation is the area’s largest employer and major economic driver.

Another significant source of revenue in the area is Ruidoso Downs Race Track and Casino, which General Manager Rick Baugh told lawmakers has an annual payroll of $5.5 million and employs over 500 people in peak season.

The race track was largely saved from fire damage, but flooding caused extensive damage to the track, requiring racing to be shut down and relocated to the Downs at Albuquerque.

“The gross receipts tax that the racetrack pays on an average for an annual basis is around $720,000. We pay around $1.6 million in gaming tax and another $1.3 million in purse monies to our owners and trainers,” Baugh said. “Our bridge has been out, which has stopped us from operating for about 25 days.”

With the cooler months getting closer, officials worry Ski Apache, another revenue driver, will also take some hits. Rep. Harlan Vincent (R-Ruidoso Downs) said the New Mexico Department of Transportation will soon start working on restoring the road up to the ski resort, but the department has limited time before snow season begins around November.

President Thora Walsh Padilla of the Mescalero Apache Tribe said restoring the economies of the impacted communities is the main focus right now, but restoring the forests should be next.

“We have an opportunity to build back with respect for the river and with the understanding that every canyon drainage here is an intermittent stream,” Walsh Padilla said. “As we live in this landscape, we must allow the river to have its space, and understand that flood plains are hydrologically important and ecologically productive areas.”

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