Cities Civil and Municipal February 2025

Craig, Colorado

February 27, 2025

Building a Thriving Future Through Innovation and Community

Transforming its identity with bold initiatives in housing, infrastructure, recreation, and local business development

Craig, Colorado, a town of just over 9,000 residents in the northwestern corner of the state, is where small-town charm meets the rugged beauty of the Yampa Valley. Historically rooted in coal and energy production, Craig finds itself at the crossroads of an economic and cultural shift as it moves away from its extractive past and toward a future defined by innovation and collaboration.

For Shannon Scott, the city’s economic development manager, Craig is not just a place to work but a vibrant community that thrives on its shared sense of purpose. “Craig is just a really great place to live,” she says with enthusiasm. It has a small-town feel. There’s a really big sense of community considering our economic situation right now, transitioning away from legacy extractive industries.”

Scott acknowledges the challenges the town has faced but emphasizes the collective determination of its residents. “It’s been amazing to see an entire community step up and try to figure out what our future looks like,” she notes. This shift hasn’t been easy, but the efforts of Craig’s citizens reflect a remarkable resilience.

Building a Future While Honoring the Past

As Craig continues rebuilding, the town has leaned into strategic planning and community-driven initiatives to spur growth and redefine its identity. The Moffat County Vision 2025 Transition Plan, launched in response to the 2020 closure announcements of local coal mines and the power plant, has become a cornerstone for progress. This forward-thinking roadmap addresses critical areas such as housing, transportation, outdoor recreation, and industry support, ensuring that Craig’s evolution is intentional and impactful.

Scott explains, “We’ve had a lot of success in checking those priorities off of our list.” The plan’s most urgent focus has been addressing housing shortages, a crucial component of sustainable economic development. “You have to have a place to live,” she asserts, “whether it’s for people already here or those moving into the community.” To that end, Craig created the Craig Housing Authority to spearhead housing projects, offer developer incentives, and manage affordability initiatives.

One standout achievement is a recently completed 20-unit townhome complex, finalized in September 2024. Featuring 12 three-bedroom and eight two-bedroom units, the development is AMI (area median income) restricted to ensure affordability. “We currently have two of those units sold,” Scott says, marking a promising start.

Craig is also advancing ambitious public-private housing projects. Partnering with Colorado Outdoors, the town is set to develop a 96-unit rental apartment complex tailored to the workforce demographic. Scott describes the endeavor as pivotal to revitalizing the area, noting its focus on affordability and accessibility.

Revitalization extends beyond housing. Through tax increment financing (TIF) initiatives managed by the urban renewal authority, Craig transforms its more blighted areas into vibrant hubs. “We’re using TIF financing to encourage redevelopment,” Scott explains. One highlight is the forthcoming Bad Alibi Distillery, which blends modern craft production with Craig’s historical charm. “They’re going to utilize some of our more historical aspects for the distillery and tie that into their products, which is really cool,” she shares.

Investing in Growth and Opportunity

Craig’s economic revitalization efforts are as much about preserving its community spirit as they are about creating space for new ideas. Scott describes how Craig is reimagining its downtown with a nod to modern urban trends. “In 2021, we were awarded a Brownfields grant, which allowed us to assess 13 sites throughout the City, including two vacant downtown properties,” she says. The grant not only addressed environmental concerns but also facilitated planning for redevelopment. Concepts include storefront retail at the street level with housing units above and blending commerce and living spaces to boost activity downtown. Both of those downtown properties have now been sold to private developers.

An additional opportunity lies in the former county courthouse site, which sits vacant and ready for reinvention. Scott says initial feedback from the community suggests a mixed-use development would best utilize the prime location. “Its size and central position make it ideal for a project combining housing and commercial use,” she explains, emphasizing the importance of a walkable, engaging downtown for Craig’s future.

The city also underpins entrepreneurship through initiatives like the Craig Business Plan Competition, launched last year to support local innovation. “Our first competition had two winners, both startups, who received funding to turn their ideas into reality,” Scott recounts. The first-place winner earned $15,000, while second place took home $5,000. “We plan to keep this program going, and we’re looking to increase the prize money to attract even more participants,” Scott says.

Craig’s affordability also plays a role in its growth strategy. “We’re seeing people relocate here because it’s more affordable than many nearby cities,” Scott shares. The city is using targeted marketing campaigns to attract industries that align with the skills of its transitioning workforce from the coal mines and power plants. “It’s a delicate balance,” she admits. “We have to support our local businesses, but we also recognize that to succeed, we need to diversify.”

Transforming the Yampa River into a Recreational Hub

One of Craig’s defining features, the Yampa River, is central to the city’s efforts to enhance quality of life and boost economic development. With roots in a community-driven initiative, the Yampa River Corridor Project has evolved into a comprehensive collaboration between Moffat County and the City of Craig.

Melanie Kilpatrick, Project Manager of the Yampa River Corridor Project and Executive Assistant to the City Manager, describes the multi-faceted project as ambitious and community-focused. “The Yampa River Corridor Project includes two major sites,” she explains. The Loudy Simpson site has already seen significant upgrades like a new access road, parking, and a boat ramp. “It’s where boaters and recreationalists can easily get onto the river,” she says, highlighting its growing popularity. The site, adjacent to Loudy Simpson Park, has become a focal point for local events and a gateway to the river’s natural beauty.

The project takes on an equally important but more complex task two miles upriver. “Near the golf course and our city’s water intake structure, we’re rehabilitating outdated infrastructure while also creating the Craig Whitewater Park,” Kilpatrick explains. The park, designed for recreation and municipal needs, is set to include whitewater features and upland amenities, transforming the area into an integrated riverside park. While construction has faced hurdles, completion is expected by the end of 2025, with public access planned for the spring of 2026.

Kilpatrick shares that feedback on the Loudy Simpson improvements has been overwhelmingly positive. “Visitors and locals love having a dedicated place to park and get onto the river,” she says, noting how it opens up access to non-permitted river sections, including the picturesque Little Yampa Canyon. The project has tapped into a previously underutilized asset, enriching Craig’s outdoor offerings and creating new possibilities for recreation-based tourism.

Preparing Craig for Growth with Critical Infrastructure

To attract new businesses and support development, Craig has focused on upgrading its infrastructure to meet modern demands. Scott explains how Craig has embraced the idea of “horizontal infrastructure” as an incentive for development. “We look at what a developer or business might need to construct a facility, and we use grant dollars to put in things like water and sewer lines, gas, electricity, and broadband,” she says. These investments reduce upfront costs for developers and ensure sites are shovel-ready for projects.

One key initiative is the Craig Business and Industrial Park, a 25-acre site next to the Union Pacific Railroad. Scott highlights how the city secured $2.5 million in federal funding through a Congressionally Directed Spending grant to begin constructing the necessary infrastructure. “We’ve also paired that with a $1,051,000 state grant from the Office of Just Transition to help acquire the property,” she adds. The goal is to fully prepare the site for businesses to move in and build without dealing with additional infrastructure expenses.

Broadband inclusion in these efforts is essential for modern businesses. “When we talk about infrastructure, broadband is part of that equation,” Scott emphasizes, pointing out how crucial high-speed internet is for attracting a wide range of industries. These updates make Craig an appealing choice for companies seeking affordable locations with reliable utilities already in place.

Revitalizing Craig’s Parks for Community Connection

Craig’s parks and recreation initiatives are creating spaces where residents can gather, relax, and celebrate the spirit of the community. Kilpatrick highlights the work being done on the downtown pocket park, a central feature of Craig’s core. “It’s really the heart of downtown,” she says, describing how grant funding has been secured to reconstruct the park. The updates include accessibility improvements, public restrooms, and a new multipurpose picnic/amphitheater shelter aimed to enhance smaller concerts and community gathering events. “It’s about serving the updated needs of the community,” Kilpatrick explains.

At Woodbury Park, Craig’s largest recreational site, enhancements are taking shape through a phased improvement plan. “We’re tackling things strategically,” Kilpatrick notes, citing recent restrooms and playground equipment updates. Dugouts for the park’s baseball fields are also being upgraded, ensuring the space continues to support a variety of uses for families and local sports teams.

Shaping the Future of Craig Through Vision and Collaboration

Over the next 18 months, Craig is poised for significant changes to capitalize on opportunities to strengthen its economy and community. With a power plant closure looming, the city and Moffat County are working closely to ensure a smooth transition, utilizing newly awarded settlement funds to create jobs, offset lost property taxes, and spur economic growth.

Scott shares how the city plans to approach this pivotal moment. “The funds provide a financial cushion to support businesses and create jobs,” she explains. “We’re focused on using these resources strategically, thinking about how to build a successful, diversified economy.” She emphasizes that collaboration between the city and county will be crucial, with board oversight and legal guidance ensuring the funds are applied effectively to long-term projects.

For Kilpatrick, the next phase of Craig’s evolution also showcases its progress. “With the Whitewater Park coming online, we’re already thinking about how to promote it as an attractive asset for Craig,” she says. This emphasis on marketing and leveraging existing funds shows the city’s proactive approach to keeping momentum alive and securing additional resources for future projects.

Both leaders draw on personal philosophies to stay grounded amid competing priorities and partnerships. Kilpatrick reflects on advice that has shaped her work: “Anticipating needs is key. It’s about being strategic, looking ahead, and evolving with our community to take the best from the changes we’re facing.” Having grown up in Craig, her passion for creating a thriving, authentic community is deeply personal. “It’s meaningful to me to contribute positively, to raise my family here, and to build something that supports other families and retirees who choose Craig as their home.”

Scott echoes the importance of teamwork and collaboration in economic development. “Sometimes it’s overwhelming with so many people stepping up to help,” she admits. “But at the end of the day, it’s amazing to see the community, state partners, contractors, and consultants all working together.” While challenges remain, Scott sees Craig’s unique position as an opportunity. “We get to shape our future,” she says. We have the support we need, and the right people in place to make it happen.”