The town of Nederland, Colo., population 1,500, announced Tuesday that it has signed a letter of intent to purchase Eldora Mountain Resort from its current owner, Utah-based POWDR.
Located about 20 miles west of Boulder, Eldora is popular with college students, families and Front Range residents looking to avoid I-70 traffic.
“Our vision is to build on Eldora’s legacy and create a community-driven, sustainable, and year-round destination that supports local jobs, outdoor industries, and infrastructure development,” said Mayor Billy Giblin in a news release.
The final purchase agreement is still in the works, and the town aims to finalize the deal by October.
Town officials called the move a “bold step.” Local ownership of the ski resort would buck the industry trend of consolidation by large corporations.
“Our dream is just a mountain that runs a little bit differently,” Town Administrator Jonathan Cain told KUNC earlier this year.
Roughly 700 people work at Eldora during peak season. Under the plan, they would become Nederland employees, according to an information page posted this week. Cain said the town wants to work with the resort on workforce housing, childcare and transportation to support workers.
Nederland had estimated Eldora’s price tag was between $100 million and $200 million, but said Tuesday that the exact purchase price will remain confidential. To pay for the mountain, the town plans on issuing revenue bonds tied to Eldora’s income from lift tickets and food, supplemented by grants and private investments.
Officials said the structure insulates local taxpayers from being on the hook for the debt. The town also projects that the mountain could generate $1-2 million in annual sales tax revenue, which could fund local infrastructure projects once bond payments are covered.
“We promised from the beginning that we would bow out of this opportunity at any point if it didn’t make sense,” the Nederland Board of Trustees said in a statement. “However, this opportunity makes sense. It will help us create a solid economic development foundation to help us build out the infrastructure and opportunities for tomorrow while insulating the town from financial risk.”
Nederland intends to keep Eldora on the Ikon Pass to maintain steady revenue. POWDR will also help with the transition over the next two years. After that, the town will run the mountain with 303 Ski, which it said is a coalition of Front Range ski industry veterans.
A public meeting on the plan will be held on Thursday, July 10 at 6:30 p.m. at the Nederland Community Center.
This story was produced by the Mountain West News Bureau, a collaboration between Wyoming Public Media, Nevada Public Radio, Boise State Public Radio in Idaho, KUNR in Nevada, KUNC in Colorado and KANW in New Mexico, with support from affiliate stations across the region. Funding for the Mountain West News Bureau is provided in part by CPB.
