CHEYENNE - Wyoming's capital city is well outside the state's teeming natural gas fields and far from the busy coal mines.

But when it comes to job growth and attracting new companies, Cheyenne is no slouch.

Wal-Mart today celebrates the grand opening of its massive Cheyenne regional distribution hub, which is to employ more than 650 workers by summer's end. It's one of three major economic growth projects slated for the area.

City leaders credit hard work, aggressive promotion and some outside forces for the economic uptick.

The growth is generating jobs, higher wages and a presumption that the rise will continue now that Cheyenne is "on the map."

And unlike some of the state's mineral regions, Cheyenne appears able to accommodate its growth rate of around 2 to 3 percent a year with plenty of workers and housing.

"I think we've got the best of both worlds - really nice, steady growth but not excessive growth that's unmanageable," Mayor Jack Spiker said.

Wyoming's economy is riding high. State coffers are full of mineral revenues, and communities including Gillette to Rock Springs are experiencing seam-bursting growth every year.

But Cheyenne, a city of 53,000 in the state's southeast corner, has for years relied on incomes from state workers, railroaders, ranchers and Air Force personnel to pay the bills and support business.

Increasingly, the capital city enjoys economic energy generated by Colorado's booming Front Range and proximity to Denver International Airport.

The city also lies at the crossroads of Interstates 80 and 25, which makes it a logical spot for the Wal-Mart distribution center and a similarly massive Lowe's center that employs more than 1,000 workers. Key railroad lines also traces through town.

But there's another reason for the growth: Cheyenne residents want it.

Annual surveys of residents showed a strong majority support growth, even if it means an increase in issues associated with larger populations, such as traffic congestion.

That sentiment has hushed growth opponents and put pressure on government to step up efforts to attract business.

"I think the community is in a cycle right now where it's ready for growth," Spiker said. "That hasn't always been the case."

Cheyenne residents and businesses have shown an extraordinary willingness to invest in the community.

Laramie County, home to around 78,000 people, has twice endorsed a fifth-penny sales tax, which contributes about $2 million every four years to economic development.

Self-imposed taxes make strong selling points for companies looking to expand to Cheyenne, said Randy Bruns, CEO of Cheyenne's nonprofit economic development arm, Cheyenne Leads.

Cheyenne voters have approved money for a greenway that links parks, public spaces and neighborhoods by way of a pedestrian pathway.

They also elect leaders who support development and growth. Those leaders have:

* Increased capacity at the water treatment and wastewater treatment plants to accommodate 100,000 residents.

* Made a commitment to revitalize downtown and maintain a strong police department.

* Hired a grant writer, who has raised $45 million in six years for quality-of-life projects.

* Invested income above the $6 million city budget reserves in development, including creation of industrial areas.

* Developed industrial parks in the Cheyenne area, which have been a magnet for companies looking for a home in the region.

Spiker said a chief reason Lowe's chose Cheyenne for a million-square-foot distribution center was that the city was poised for a major industrial project.

At the time, Lowe's was expanding aggressively and had no patience for cities that couldn't immediately accommodate them, Spiker said.

"I think communities have to be ready for growth in order to embrace growth," Spiker said.

Another major impetus for growth is the city's nonprofit economic development arm, Cheyenne Leads.

Formed two decades ago, Cheyenne Leads helped attract the National Center for Atmospheric Research's $60 million weather data center, which will bring about 40 well-paid workers to the community.

It also helped land an Allstate Insurance claim center, which is expected to create 200 jobs and add $5.2 million in payroll to the Laramie County economy.

"Without any question, the formation of Cheyenne Leads was the beginning catalyst," said Dick O'Gara of the Wyoming Center for Business and Economic Analysis, a private consulting firm in Cheyenne.

Boosting wages

Increased job opportunities in Cheyenne are putting pressure on some business owners to raise salaries. The result has been an "internal economic windfall," Spiker said.

Another pattern that may emerge is a worker migration from lower-paying jobs to new, higher-paying positions. The Wal-Mart hub has advertised hourly wages of more than $13.

"Anytime you have growth in your economy, you are going to see this shifting around of workers, and I think it's hardest on the smaller employers," said Joan Evans, director of the state Department of Workforce Services.

Annette Hansen, whose family owns Dial-A-Maid cleaning service in Cheyenne, said none of her five employees have left for higher-paying jobs recently. But she has noticed fewer responses to employment ads.

"We have been a little slow as far as people answering ads," Hansen said. "I don't know if that is a result of Wal-Mart."

Cheyenne's unemployment rate has hovered around 4.5 percent - compared with 2.6 percent for the state - for the last couple of years. So there are workers who still don't have jobs.

In the last 90 days, the local Workforce Services office registered 1,200 job seekers, 700 of whom had no jobs at all. During the same period, local businesses reported about 829 worker vacancies.

"From what we're seeing, we're doing OK," Evans said.

Success could 'snowball'

Cheyenne leaders have worked to keep the housing market open by aggressively annexing county land for development, Spiker said.

"Cheyenne is very aggressive and progressive when it comes to new subdivisions," he said.

It would take a dramatic spike in new residents to cause a crunch in the housing market, said Pat Lauber, associate broker at #1 Properties, one of Cheyenne's largest real estate companies.

Lauber said the inventory of used homes is well stocked, and new subdivisions are coming on line in Laramie County.

"Buyers who are sincere and focused in their search are going to find a house," Lauber said.

Economic forecasters predict a strong future for Cheyenne. But O'Gara said it will take continued vigilance by the city, private business and citizens to keep the momentum rolling.

The NCAR data center alone could be the catalyst for serious growth in the high-tech area, O'Gara said.

"I think the potential there is really at this time unmeasurable," O'Gara said. "We can't put a number on it. We can't put a dollar on it."

Cheyenne's success may also reach a point where it begins to snowball. Spiker predicted that the Wal-Mart distribution center and the data center will attract similar businesses.

"We're on the map," Bruns added.

Reach capital bureau reporter Jared Miller at (307) 632-1244 or at jared.miller@casperstartribune.net.