The Hayden Town Council agreed Thursday to hire a Craig company to start installing a geothermal heating and cooling system at its business park.

Located next to the Yampa Valley Regional Airport, the Northwest Colorado Business District has a dozen lots and is already provided with water, sanitation, electricity and road access.

In an effort to attract more businesses, the town will install a closed loop geothermal system that would dramatically lower heating and cooling costs, according to the town.

Council members approved a $634,000 contract with Anson Excavating & Pipe Construction to bore holes between 500 and 1,000 feet deep, and install the heat exchange mechanical system and distribution pipelines in a first phase.

Town Manager Matt Mendisco said the system will be phased, depending on what the customers need. By installing the mechanical system now, costs will be lower as more businesses move in and build their facilities, he added.

In other business on Thursday, council members approved a $250,000 consulting contract with Denver-based Clarion & Associates to help the town develop new plans and data systems, so planners will be aware of long-term impacts from the town’s current development.

The council also held the town’s first public hearing regarding the potential formation of a Rural Transportation Authority to serve the Yampa Valley. A final public hearing on the matter is slated for August.