While Dominique Durand and Andy Chase were putting the finishing touches on Ivy's third album, Long Distance, and preparing themselves for parenthood, they launched Paco with composer Michael Hampton and engineer Gary Maurer. Hampton, a former Dischord D.C. punk, had been doing his own score and soundtrack work, while Maurer had engineered albums by the likes of Hem, GrooveLily, and Ivy's sister band, Fountains of Wayne. The latter also frequented the same New York City neighborhoods as Ivy, so bumping into one another was natural. Chase was on his way to his Stratosphere Studio one day in early 2001 when he heard this magnificent sound coming from a window. It was Hampton and Maurer. From there, a design was cast: Chase's teenage adoration for the new romantic era slightly filtered through the influential electronic tweaking from Maurer and Hampton. Durand's '60s pop-flavored vocals added a playful flair unlike Ivy's icy cool sophistication.