Business and residential construction in Cortez had a robust year in 2015.

Sales tax collections last year outpaced 2014 by about 5.6 percent, bringing in about $10.38 million – up from $9.83 million.

“It just seemed like we were busy everywhere,” said Shane Hale, Cortez city manager.

Lodgers tax collections were also up by about 11 percent. increasing to $223,000 from $201,000 in 2014.

Strong tourism likely contributed to the strong economy, he said.

Mesa Verde saw an increase in visitors that corresponded to the increase in the lodgers tax. The number of visitors at the national park was up 11.2 percent, to 557,800 in 2015 compared with 501,600.

“Overall, the park service is seeing an increase in visitation. Many parks set new records for visitation last year,” Cristy Brown, a spokeswoman for Mesa Verde, said in an email.

The park is expecting even more tourists in 2016 because the National Park Service is celebrating its centennial and Mesa Verde is offering 16 free days.

While tourism is a big piece of the economic success, population growth likely also contributed, Hale said.

Towns expect residential growth to follow commercial growth, and that’s what happened in Cortez.

In 2014, a hotel, dental clinic, auto parts store and other businesses brought “a deluge of commercial construction” to town, Hale said.

Last year, the city issued permits for 16 new family homes valued at $3.5 million. From 2012 through 2014, the city issued permits for 17 houses.

The slow construction in prior years could have been reflective of a housing glut that is now easing with more home sales, Hale said.

In 2016 Hale predicts another year of growth; however, he is concerned by the collapse in oil and gas prices.

“There is a lot of people here that rely on oil and gas development,” he said.

The decline oil and gas highlights the need to continue to try to diversify the economy, he said.

mshinn@durangoherald.com