Capitol Rebuild: Montpelier

A postcard-perfect capital—facing problems too big to ignore.

Cozy. Charming. The kind of place where everyone knows someone who knows everyone.

Montpelier is the smallest capital city in the country—by a lot. It’s the only one without a McDonald’s (or a Burger King, Taco Bell, or Starbucks). It’s a picture-perfect New England town that also happens to shape the direction of the state.

But beneath the charm, there are real questions. With rising infrastructure costs, a downtown still adjusting to pandemic-era shifts, and fewer state workers commuting in, can Montpelier sustain its zero-growth trajectory? Or is it time to embrace new housing, attract more people, and figure out how to grow without losing what made it so special in the first place?

This week on Capitol Rebuild, we head to the center of power in the Green Mountain State: Montpelier.

Editor’s Note: Last week, I was a bit too hard on Phoenix. After a heavy dose of doomscrolling about water shortages and climate risks, I overlooked just how effectively Phoenix has used its position as a capital city. The city has seen explosive growth in large part because state, county, and city governments have aligned to drive investment and expansion. That’s exactly the kind of leverage Capitol Rebuild is meant to spotlight.

So, I’ve revised Phoenix’s overall score to 7.9 and bumped its capitol potential to 8.4 as well. Probably not the last time I go back and change a score as I realize how wrong I was.

How Did the Capitol End Up There?

When you look at a map of the original 13 colonies, there's a noticeable gap between New York and New Hampshire. That blank space? Vermont. The people of Vermont declared independence—not just from Britain, but also from the other colonies. The Continental Congress didn’t recognize them, so Vermont spent 14 years as an independent republic.

When they finally joined the Union in 1791 as the 14th state, it cost them: a $30,000 payment to New York (a bit over $1 million today) to settle long-standing land disputes.

In true Vermont fashion, the state kept its independent streak alive by... not having a capital. Instead, lawmakers rotated between 14 towns, meeting in churches, inns, and taverns across the state. Eventually, in 1805, someone admitted this might not be the most efficient way to run a government. They picked Montpelier—not one of the original 14 towns where government business had been done—as the capital. Why? It was centrally located, and more importantly, the locals were willing to foot the bill for a state house.

The first capitol was exactly what you’d expect from early Vermont: a quaint, three-story wooden structure. It didn’t even make it 30 years before the state outgrew it.

Take two had bigger ambitions. Modeled after the Greek Temple of Theseus, it featured a massive granite portico and six towering columns. It also didn’t make it to its 20th birthday—destroyed by fire before its second decade.

The third time was definitely a charm. Completed in 1859, the current State House is one of the best in the country. The granite columns from version two were salvaged and reused, and now frame the building’s most iconic feature: a gleaming golden dome. It’s also the only state capitol in America heated by wood. Because, of course it is.

My Experiences with Montpelier

None. I’ve been to Burlington a few times, but I never did the quintessential New England road trip that would’ve brought me to Montpelier. Every time I’ve visited Woodstock, Illinois (where Groundhog Day was filmed), I imagine Montpelier has a similar vibe.

What’s Working

Civic Infrastructure

Montpelier Alive is the driving force behind much of the energy downtown. It’s the kind of organization that brings people in from the surrounding region and creates the kind of programming that locals actually show up for.

As I write more of these, I’ve come to deeply appreciate the value of local journalism. Despite its size, Montpelier punches above its weight. It has The Bridge, a hyper-local nonprofit paper that keeps residents informed, and VTDigger, one of the country’s best examples of nonprofit statehouse journalism.

The city is also actively planning for a more sustainable future. The Montpelier in Motion plan outlines new investments in bike and pedestrian infrastructure, and the city’s commitment to becoming net-zero by 2030 is one of the most ambitious in the nation.

Place

It’s just so darn cute and somewhat frozen in time - there’s a Reddit thread that ranks Vermont’s bookstores. The downtown is classic small-town New England: narrow streets, brick buildings that front the sidewalk, and storefronts that make you want to go in and see what treasure you can find.

Topographically, it’s stunning. The city stretches along the Winooski and North Branch Rivers, with forested hills rising on all sides. It’s as if someone dropped a functioning state capital into a postcard.

Montpelier is also insanely walkable. Everything is close. The sidewalks are everywhere. It’s what you picture when you think “walkable downtown.”

Right next to the capitol building is Hubbard Park, a 200-acre gem with over 7 miles of hiking and cross-country ski trails, plus a 54-foot stone observation tower that offers sweeping views of the city and mountains.

If you like skiing and government work, Montpelier might be your perfect match. Between Hubbard Park and nearby trails, the area offers more than 25 miles of cross-country skiing, plus easy access to major downhill resorts like Stowe and Sugarbush.

Want to understand Vermont? The Vermont History Museum does a great job telling the story, with a standout 50-foot mural by Paul Sample that brings 300 years of the state’s history to life.

Arts & Culture

Montpelier definitely outkicks its coverage here.

The Montpelier Art Walk, hosted six times a year by the Center for Arts and Learning, turns the city into an open gallery regardless of season. That’s only possible in a downtown this compact and active.

The Savoy Theater, a small indie cinema downtown, regularly shows foreign films, documentaries, and art house picks—and yes, there’s a basement video rental shop still going strong.

The Lost Nation Theater, based in the Montpelier City Hall Auditorium, is an award-winning regional company that’s helped make the performing arts accessible to Vermonters for decades.

For a city this size, that’s an impressive lineup.

Obligatory Montpelier Hype Video

What’s Not Working

Floods Aren’t Going Away

Montpelier’s flooding problem isn’t going anywhere—literally. The city sits in a bowl at the confluence of the Winooski and North Branch Rivers, with steep hills surrounding downtown that funnel water right into it. Spring thaws and intense rains regularly overwhelm the system.

The 2023 floods were a stark reminder. In just 24 hours, more than $20 million in damage hit downtown businesses—many of which were still recovering from the pandemic. It’s not a fluke. It’s geography and climate change colliding.

It’s too damn slow

Montpelier is not exactly a YIMBY stronghold. The city has been working on a new City plan since 2016—and it still hasn’t been adopted. The process has generated plenty of debate and drama but not a lot of action.

Despite clear demand for more housing, the city has made little progress on a 133-acre city-owned site that could help relieve pressure. Call it what you want—community engagement, careful planning—but it’s feeling a lot like paralysis by analysis.

Lack of growth engines

Montpelier’s economic base is thin. The two biggest employers are the State of Vermont and National Life Group—stable, yes, but not exactly dynamic.

There’s no commercial airport, no research university, and no major tech or health system anchor. It’s a gorgeous place, but long-term population decline is a real risk. The median age is 43, and nearly a quarter of the population is over 60. Without new industries or a big talent magnet, replacing retirees is going to be a challenge.

People Doing the Work

Most people spend their first month on the job getting their feet wet—meeting coworkers, finding the best lunch spot, figuring out how to file an expense report.

Katie Trautz, Executive Director of Montpelier Alive, didn’t get that luxury. She stepped into the role just as downtown Montpelier was literally under water following the devastating 2023 flood. She had to lead the immediate cleanup effort and figure out how to support hundreds of residents and business owners through an economic and emotional crisis.

Of the 140+ businesses impacted by the July flood, over 90% have reopened less than a year later. That’s a remarkable recovery—and Katie’s leadership is a big reason why. She’s now becoming a national voice in the downtown revitalization world on how to prepare for and respond to climate-driven disasters. That’s what real leadership looks like.

Morgan Brown is the kind of person you don’t hear about often enough—but whose impact is impossible to ignore. A formerly unhoused resident of Montpelier, Morgan has spent years advocating for housing justice, working to ensure that every person in the city has a place to call home. His lived experience fuels a tireless commitment to making sure no one is left behind.

Kim Bent and Kathleen Keenan are the co-founders of Montpelier’s award-winning regional theater company. They’ve kept arts and performance alive for decades in a town with fewer than 10,000 people. During COVID and the 2023 floods, they adapted and kept creating. They represent the cultural glue of Montpelier—resilient, creative, community-rooted.

Bill Fraser has been Montpelier’s city manager since 1995—which in local government years is practically a lifetime. He’s been through multiple floods, planning cycles, and city council evolutions. This will be his last year (see the News section) but he clearly has been a driving force of Montpelier’s success over the last three decades.

I didn’t think climate would be a big topic of Capitol Rebuild, but this is the second city in a row that is facing big challenges due to climate change. Montpelier may be small, but it’s the political heart of a state where youth activism punches way above its weight. In recent years, Vermont Youth Lobby, Sustainability Academy students, and youth-led coalitions like VT Climate Union have repeatedly come to the capitol demand stronger action on climate change and flood resilience.

In a town known for slow process, the youth climate movement is one of the most visible, consistent forces demanding faster action.

2025 Capitol Score

Capitol Score is my subjective ranking (using a 10 point scale) on how the city stacks up with regards to place, innovation, arts & culture, and overall livability. A perfect score isn’t the goal, improvement is.

Montpelier 2025 Capitol Score is 6.1

Montpelier has a Capital Score Potential of 6.3

Three Wishes for the Capitol Genie

Just a quick note here. This is just me throwing ideas on the wall based on my limited knowledge of what’s happening. There are likely many many things that need improvement and the folks on the ground will always know more.

Become the Cross Country Skiing Capital of the East

Montpelier needs niche assets to attract people—and this one is literally right outside its door. Between Hubbard Park, North Branch Park, and the surrounding trail systems, the city already has a solid foundation for cross-country skiing. It’s time to go all-in.

Montpelier should build its identity around Nordic skiing, investing in intentional infrastructure (groomed trails, trailhead facilities, signage), winter programming (races, clinics, festivals), and brand positioning. With world-class downhill resorts just up the road, owning the cross-country niche could turn Montpelier into a year-round outdoor destination for athletes, families, and recreation tourists alike. It wouldn’t just attract visitors—it would attract residents who want an active lifestyle with a civic core.

Finally Embrace the River

It’s hard to believe a city as beautiful as Montpelier has effectively turned its back on the river. Parking lots, rail lines, and roadways dominate what should be the city’s most natural civic space. The proposed Confluence River Park, which would’ve been Montpelier’s first true riverfront park, offered a chance to change that—but it was recently voted down by City Council.

Montpelier needs to revisit that vision—and expand it. The river is more than a flooding hazard; it’s an untapped public space that could anchor new housing, recreation, and civic life. Reimagining the riverfront with parks, trails, terraces, and climate-adapted design could unlock a whole new era of urban livability and tourism. Cities around the country—from Providence to Greenville—have been transformed by embracing their rivers. Montpelier could be next.

Build More Housing and Attract Destination Entrepreneurs

Montpelier won’t grow without new housing—and it won’t thrive without new businesses that give people a reason to show up. As the most centrally located city in Vermont, it’s well-positioned to become a hub for destination-oriented entrepreneurs in food, wellness, design, and the creative economy. But to do that, the city needs to make it easier for people to live, work, and open something new.

That means unlocking new housing—especially infill and missing middle—and pairing it with incentives to support independent entrepreneurs who can bring life to storefronts with cafes, bakeries, bookstores, bike shops, saunas, whatever. Cities like Hudson (NY), Biddeford (ME), and Brattleboro have leaned into this model, and Montpelier could too—if it’s willing to take action on housing and back the kind of businesses that turn a cute town into a must-visit.

What’s Happening in Montpelier?

Montpelier City Council explains decision to sack city manager and

Montpelier to Pay City Manager $240,000 for Early Termination. 30 years is a long time for one person to be in charge. But at the same time, change for change’s sake is never a strong strategy. It’s also somewhat frightening to see that Council members leading this effort weren’t aware of the magnitude of the severance agreement. Montpelier seems to be at a fragile moment and they are going to need a strong city manager that can both provide vision and be ready to deal with the next flood.

Montpelier named one of most charming downtowns by HGTV. Least shocking news story I’ve come across in Capitol Rebuild.

Engineer Says Water Pipe Leaks are Undermining City Roads Aging infrastructure + aging population is not a recipe for success. If you want to raise taxes, it’s going to be on those that are on a fixed income AND vote. Montpelier needs some sort of growth plan to increase revenues, otherwise the next HGTV article on Montpelier will be about towns with the most charming potholes and water boiling announcements.

Final Thoughts

Montpelier might be the smallest capital in the country, but it’s not short on character. It has one of the most walkable downtowns in America, a community that shows up for each other in a crisis, and a landscape that makes you want to stay a while. But small-town charm alone worked in the 20th Century, it won’t be enough for the upcoming future. The threats are real—flooding, aging demographics, stagnant growth—and so is the need for bolder action. Montpelier needs to lean into what makes it special and carve out a future that’s not just resilient, but magnetic.

Capitol Rankings

Capitol score (Capitol potential)

1. Phoenix, 7.9 (8.4)

2. Des Moines, 6.7 (8.2)

3. Montpelier, 6.1 (6.3)

4. Harrisburg, 4.3 (6.1)

Next week we go down south for the first time and examine Little Rock.