One major risk of opportunity zone investment is the concern that it may not be enough to spur revitalization, and the dollars spent could be dollars wasted. The current tax break includes no requirements to ensure that local residents benefit from the investments, so there’s a risk that investors can secure tax benefits from meaningless investments while generating little real economic activity in Craig. Local residents will only benefit to the extent that the investment encourages other investments, creates jobs, and spurs business and economic development that wouldn’t have otherwise occurred. Additionally, opportunity zones carry the risk that the tax benefit may be irrelevant if there is no appreciation over the 10-year hold period. Opportunity zone investment is most successful when coupled with other initiatives, so our multi-step plan will help combat this risk.

Building networks and expanding broadband coverage to rural areas is a very practical way to stimulate and revitalize local economies. However, the suggestion to fund broadband access through USDA programs carries two major risks. First of all, this initiative requires over $1,000,000 in funding, so there is the question of whether or not Craig can raise enough money to get the job done. Secondly, even if Craig can receive enough grants and loans to cover the cost of installation, the population density in Craig may be too low for any provider to sustain business. To mitigate this risk, the city of Craig should work with CenturyLink who already provides access in several neighboring towns. 

This biggest risk with this proposed step is the fact that citizens may not take advantage of these programs due to a lack of awareness. Colorado’s Rural Start Up Fund has $9.1 million dollars of capital to deploy, and entrepreneurial residents in Craig may be encouraged to grow their businesses if they are aware of the programs available to help. Craig can educate its residents through social media, newspapers, and word of mouth. The City Council can also hold monthly meetings and seminars to educate the community and provide guidance on how to leverage their resources. As word travels, people will be more knowledgeable and more inclined to invest and expand their businesses through the help of these funds.

Small towns often see economic success from the legalization of recreational marijuana sales; however, Craig runs the risk that a growing cannabis industry may change the town for the worse. When the town of Pueblo, Colorado legalized marijuana back in 2016, the county saw a large increase in property crime, homelessness, and seizures of drugs like heroin and Amphetamines. Additionally, in the first six months of legalization, Pueblo County busted more than 40 illegal grow operations. In order to minimize this risk in Craig, it’s important to educate the community and make sure citizens have the resources to run grow operations legally. Also, it’s critical to ensure that the city heavily regulates and monitors these operations.

Stimulating tourism is a very low risk endeavor given the ample recreational activities and scenic attractions in Craig and Moffat County. The county already has access to exceptional golfing, fishing, hiking, 4-wheeling, rafting, touring, camping, and birding, so no money would need to be spent investing in these activities. However, some of the more extravagant tourism opportunities such as luxury accommodations or dude ranches require large amounts of capital, and there’s the inherent risk that they underperform and lose revenue. Additionally, the demand for these attractions may be seasonal, rendering the projects unprofitable if only popular for a limited period of time. To reduce the risk of a failed investment, Craig should start by simply just advertising the tourist attractions and events they currently have. If these smaller measures prove profitable and start generating revenue, then Craig can consider developing a more capital-intensive attraction.