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Steamboat Springs — Downtown sales managed to rise in July, despite various construction projects, reduced lodging, the loss of two convenience stores and a 25 percent reduction in the number of Triple Crown teams in Steamboat Springs that month, compared to last year.

According to data collected by the city, Steamboat Springs collected $352,945 in sales tax downtown in July, up from $349,186 the same month last year. The 1.1 percent increase may seem insignificant, but it ends a four-month streak of declining downtown sales. Miscellaneous retail sales made a big bounce back from June, when they were down 7.9 percent from 2006. In July, they were up 4.4 percent. Total downtown sales tax collections are down 0.5 percent on the year-to-date.

"We were happy to see that they stayed right about the same," Kim Weber, the city's revenue supervisor, said of downtown sales. "They've had a few small decreases. This month, they're holding right in there."

With the amount of construction occurring downtown, many business owners braced themselves for a down year. Many, however, are finding that sales aren't as slow as anticipated.

"I've actually had a lot of merchants say things aren't so bad," said Tracy Barnett, executive director of Main Street Steamboat Springs. "I'm very pleased that it's finally up."

Jamie McQuade, owner of Winona's Restaurant & Bakery, said sales are up this year, but stagnant when compared to the 10 to 20 percent increase she is used to seeing from one year to the next.

"I kind of anticipated it was going to be this way," said McQuade, whose restaurant sits between some of the biggest construction projects on Lincoln Avenue. "For us, I'd say we're doing OK. The parking is a nightmare, but things are good."

Bruce Caplowe, owner of Zing furniture store, said construction projects are no excuse for declining sales.

Considering the size of some of the developments, Caplowe said, the construction sites are amazingly clean.

"It's been fine and a little challenging," Caplowe said. "Last year was epic, and we're at least equal with that. You've got to get out there and work it hard. It's tough."

Mahogany Ridge Brewery & Grill owner Charlie Noble said his business "definitely saw an increase this year," and that with construction on the mountain even more rife than downtown, customers may just be settling for the lesser of two evils. Noble said a similar thing happened last week, when restaurants on the west side of the city were closed due to a no water use order and other businesses reaped the benefits.

Sandy Evans Hall, executive director of the Steamboat Springs Chamber Resort Association, agreed construction at the base of Steamboat Ski Area might be indirectly benefiting downtown businesses.

"People are having to go somewhere," Evans Hall said. "You don't have a lot of choices."

Evans Hall also noted that most special events in July were held downtown and that the Free Summer Concert Series was held exclusively at Howelsen Hill, when it normally alternates between there and the mountain.

Evans Hall said she still believes construction is a component of downtown economics.

"People are going to go where they have the best experience, and downtown is still a great experience," she said. "I'd imagine it would be up even more without the construction."

Mountain sales showed the biggest drop of any area measured by the city. The city collected $296,653 in sales tax on the mountain in July, down 12.3 percent from $338,051 in July 2006.

"It's due to the construction and plus the lodging is also down," said Weber. "The combination of those two both contributed to that decrease."

The area with the biggest gains was the U.S. Highway 40 corridor. Sales tax collections there rose 11.2 percent to $626,813 in July, up from $563,620 in July 2006. Overall, the city collected $1,654,631 in sales tax in July, compared with $1,614,510 in July 2006, a 2.5 percent increase. Sales tax is up 8 percent year-to-date.

When compared to other mountain communities, Steam-boat's total sales volume of $41,365,775 in July was higher than that of Breckenridge, Vail and Glenwood, but behind that of Aspen. Steamboat's 2.5 percent increase in July sales volume was behind that of all those communities except Vail, which saw sales decrease 4.1 percent.

- To reach Brandon Gee, call 871-4210

or e-mail bgee@steamboatpilot.com