Steamboat Springs took a significant step toward bringing passenger rail to the Yampa Valley on April 15 as City Council members heard a detailed update from Colorado Department of Transportation officials and ultimately approved a resolution supporting the Mountain Rail project and committing to further study of potential station locations.

Maux Sullivan, assistant director of passenger rail at CDOT, gave a comprehensive presentation at council’s regular meeting, outlining the project’s ambitious goals, phased timeline and specific implications for Steamboat.

“Most simply, (the goal is) to enhance passenger rail connectivity between Denver and Craig, but also includes improving multi-modal options, connecting communities, fostering economic vitality particularly for ‘Just Transition’ communities and supporting the state’s goals to reduce greenhouse gas emissions,” Sullivan said.

“This plan involves developing a passenger rail line that connects the mountain towns and regions with urban centers and recreational locations, and aims to use existing rail infrastructure to meet the growing demand for passenger rail service and also leverage that existing asset that’s in our state,” she added. 

The first phase of the rail project is focused on the Denver-to-Granby corridor, leveraging existing passenger rail infrastructure. The next phase would focus on local commuter service in the Yampa Valley, with a final phase connecting Denver all the way to Craig.

“In October of 2023, the transportation commission provided funding for the service development plan, so that’s the planning effort that’s been underway that we’re anticipating wrapping up this summer to really identify the path forward and toward implementation,” she said. 

The project has benefited from two state bills passed in 2024 that provide dedicated funding for rail projects, including Mountain Rail. 

“This really helps us move from that service development plan phase into thinking about implementation very quickly, so it is a goal to start service by Q4 of 2026, at least in an initial phase,” said Sullivan. 

Sullivan said that CDOT expects time traveled on the local Yampa Valley service to be competitive with drive time, allowing the rail line to serve as a reliable, safe option for both residents and tourists, especially in winter weather. 

A key focus of the Mountain Rail discussion was the identification of possible station locations in Steamboat Springs. The resolution approved by council notes two stations – one serving the city, one serving Steamboat Resort – and also commits the city to a station area planning process, which will consider land use, fiscal preparedness and infrastructure needs.

“I have concerns having (Steamboat Resort) in a resolution like this,” Councilor Amy Dickson said. “I just don’t think that should be a goal of this project.” 

“The original plan that CDOT came up with did show two potential station locations … because they did look at it and identify what they saw as two markets: one being the resort and the other being downtown,” said City Manager Tom Leeson. “Quite honestly, when we looked at it, we had some questions about that and whether that makes sense, and does it make sense to have two stations, or should we have one station? And then, where is the best location for either one or two stations? So that’s the intent of this planning effort, is really to nail that down.”

“We definitely came at it from a two-market perspective from the service development plan side, but we want to make sure that the city and the resort are comfortable with that idea,” said Cody Hedges, senior rail and transit planner at CDOT. “But … if the city and resort come together and say, ‘We can serve both with one,’ that is something you have the right to be in agreement with each other and come to us and say, ‘This does make sense.'”

Several council members pressed CDOT for more specifics on costs, operational responsibilities and timelines for the local commuter service. 

“A big portion of our confidence in the costs will come once our negotiations with Union Pacific are over,” said Paul Desrocher, director of the CDOT Division of Transit and Rail. “Once those negotiations are concluded in the next month or so, we should have a higher degree of confidence in those costs and be able to share with the community.”

“Let’s say everything lines up with Union Pacific and we have the locations in place and funding magically appears,” said Councilor Dakotah McGinlay. “Who would be responsible for maintaining these stations and repairs and long-term maintenance?” 

“Anything within the rail right-of-way will be Union Pacific’s to maintain, so no municipality, or not even the state, is going to be responsible for that railroad maintenance,” said Sullivan, who added that the maintenance logistics of platform and station amenities have yet to be determined. 

McGinlay sought clarity on whether the resolution committed the city to funding. Hedges confirmed it does not, and instead ensures that the city is “on the same page” with CDOT regarding the exploration of the rail project. 

The council ultimately approved the resolution, which commits Steamboat Springs to working with CDOT and Steamboat Resort to evaluate up to three potential station locations for up to two future mountain passenger rail stations, and to develop a station area plan that addresses land use, infrastructure and fiscal preparedness.

Council also approved a separate resolution authorizing submission of a grant application to the Colorado Department of Local Affairs for a Steamboat Springs Passenger Rail Station Site Study. The grant application requests up to $100,000 from DOLA’s Energy and Mineral Impact Assistance Funds, to be matched by a $100,000 commitment from the city, for a total project cost of $200,000. Council members directed city staff to coordinate with Steamboat Resort and Routt County to potentially share the city’s $100,000 matching expense.