Eldora Mountain Acquisition FAQs

What is the purpose of the Eldora Mountain Acquisition?

The Town of Nederland is considering the acquisition of Eldora Ski Mountain to foster new community-centric benefits, including improved local recreational opportunities, economic growth, and sustainability. The acquisition would enable the town to control the use of the mountain area for activities beyond the current winter sports, such as concerts, night skiing, as well as summer events. It also provides an incentive to encourage the development of complementary industries within the town, such as hospitality and outdoor recreation services, and to potentially encourage related outdoor recreation businesses, such as outdoor product manufacturing. As part of owning the ski mountain, the town would emphasize environmental sustainability and social equity, including affordable access for locals and workforce housing.

However, to be clear, no decisions have been made and we are working through a process. There are currently no agreements or contracts between the Town of Nederlnand and POWDR, the owners of Eldora.

How will owning Eldora benefit the public and Eldora staff?

Nederland's ownership of Eldora Ski Mountain presents several public and staff benefits:

Local Control: The town can ensure that Eldora aligns with the community's values, emphasizing environmental sustainability (e.g., renewable energy, water conservation), social equity (e.g., accessibility and affordable pricing for residents), and responsible growth. Nederland's ownership of Eldora Ski Mountain can differentiate it from the corporate ski areas by making Eldora a locally owned, community-centric "Locals" mountain that serves its broader community while welcoming visitors.

Economic Development: Eldora would offer a new source of revenue for the town. Additionally, the town's ownership of Eldora would open up opportunities for other types of economic development, including local business growth by offering year-round opportunities for residents to enjoy and benefit from. By hosting more events and activities, especially in the summer, the resort can help reduce overcrowding in other popular areas like Hessie Trail, while also offering better opportunities for local businesses to thrive with the influx of summer visitors. With more community-focused events and programs, residents can enjoy Eldora as a gathering place, contributing to a more vibrant and sustainable local economy.

Affordable Housing & Childcare: The town could integrate workforce housing development into the acquisition plan, addressing one of the critical challenges faced by Eldora employees and the community at large. This could lead to affordable housing solutions that benefit both resort employees and residents. This would also be true for childcare. Having Eldora employees as part of the "Nederland Family" can ensure we are providing collective services to enhance the lives of everyone.

High Quality Benefits for Eldora Staff: It is no secret that government agencies carry great benefits for their employees. If Nederland owned Eldora, we may be able to extend this same benefit to Eldora staff. Certain benefits can be more cost-effectively improved with greater employee numbers. One example of this owuld be retirement benefits. The town's ability to move to Colorado PERA, for example, would be more cost-effective with a larger number of employees. In turn, a Colorado PERA retirement benefit could be continued by a Town or Eldora employee if that employee came from or went to work for the State of Colorado, many school districts, and many counties and municipalities throughout Colorado.

Year-Round Offerings: By owning Eldora, Nederland would be positioned to consider improving year-round access to the mountain. We want to make it clear that we would fully consider and weigh the impacts of such an option, and that it would be in line with community goals.

Reinvestment in Community Services: Some of the profits generated by Eldora would be reinvested into local community projects, improving infrastructure, public services, and recreational amenities.

Will Nederland collect sales tax from Eldora?

If Nederland acquires Eldora, Nederland will not collect sales tax as Eldora is outside the town's jurisdiction. To collect sales tax, the town would have to annex the Eldora Resort property into town limits. However, annexation is not required to purchase it.

How will climate change impact owning and operating a ski resort?

The viability of Eldora as a ski resort depends on consistent snowfall, which is increasingly threatened by climate change. To help mitigate this, the town would explore investments in more renewable energy for resort operations and secure essential snowmaking resources to improve snowmaking systems. At the same time, the town and ski area would also pursue activities beyond winter sports, including mountain biking, concerts, as well as summer events.

How will the acquisition be funded?

The town is considering several funding mechanisms for the Eldora acquisition. We are currently building a coalition of supporters, investors, and partners to help us create a responsible capital stack. here is our current thinking:

Grants: We are pursuing various federal and state grants aimed at economic development, environmental conservation, rural infrastructure, and workforce development. These grants have the potential to help us raise tens of millions of dollars.

Public-Private Partnerships (PPPs): The town will partner with a private entity or entities experienced in managing ski resorts. In exchange for providing capital, the private partner(s) might share in the profits or be given a management contract.

Crowdfunding and Sponsorships: Perhaps one of the strategies we are most excited about is community crowdfunding. This would allow locals to contribute to the acquisition in exchange for perks (e.g., lifetime ski passes). Corporate sponsorships and naming rights for ski trails or lodges would also bring in additional revenue.

Philanthropy and Impact Investing: The town will also seek contributions from philanthropists or engage with impact investors interested in generating positive social and environmental returns.

What are the legal and financial risks of this investment?

The town is aware that acquiring a ski resort involves several risks, including those listed below. The town will fully assess all these risks before moving forward with any plans or agreements.

Financial: If the resort does not generate the expected revenues, the town would bear financial losses. Eldora's profitability is subject to factors such as weather conditions, toursim demand, and operational costs. The town must carefully evaluate Eldora's current financial state, including debts, revenue streams, and required capital improvements.

Legal: The town would need to thoroughly review any contacts related to land ownership and operational agreements with Eldora's parent company, POWDR. Legal liabilities, such as pending lawsuits, environemntal compliance, or worker safety issues, must also be evaluated.

Operational: Nederland currently lacks the expertise to manage the ski resort, so it could face operational inefficiencies. Therefore, we plan to partner with a private entity and hire experienced management to mitigate this risk. One option would be to retain the current Eldora resort management team.

How will the town manage the ski mountain if acquired?

The current thought is the town will outsource management to a private company with ski resort experience, allowing Nederland to retain ownership while delegating operational responsibilities.

What is the long-term visiton for Eldora?

The town envisitions Eldora as a locally owned, community-focused, and sustainable destination. This includes:

Environmental Stewardship: A strong focus on long-term sustainability, reducing the environmental impact of ski operations through renewable energy and conservation efforts.

Economic Reinvestment: Some of the profits generated by the resort would be reinvested in local projects, improving town infrastructure, public services, and recreational facilities.

Cultural Integration: Eldora would serve as a cultural hub, hosting events, concerts, and community gatherings.

What happens if the project does not perform as expected?

If Eldora underperforms, the town has several contingency plans:

Diversifying Revenue: To mitigate risk, the town will explore alternative revenue sources, such as summer events, partnerships, and eco-tourism packages.

Public-Private Partnerships: Sharing financial and operational risk with private entities would lessen the burden on both Nederland and the partner.

Grant Strategies: The town will pursue long-term, stable grant funding to offset operational costs during challenging financial periods, and especially as we are getting started.

How will citizens be involved in the decision-making process?

We need the community to be involved throughout this process. The town will prioritize transparency and public engagement. Citizens will be involved through:

Public Meetings: Regular town meetings will provide updates on the acquisition process, financial status, and operational decisions.

Participatory Budgeting: The community may have the opportunity to vote on how profits from Eldora are reinvested into local projects.

A Possible Citizen Advisory Committee: A non-partisan oversight committee made up of residents would ensure long-term accountability and transparency in decision-making.

How will the town address the infrastructure needs of Eldora?

A thorough assessment of Eldora’s infrastructure will be conducted to identify critical areas for improvement, including lifts, snowmaking systems, trails, lodges, and maintenance facilities. The town will:

Conduct a Comprehensive Audit: An audit will review the current state of infrastructure and prioritize necessary upgrades, particularly focusing on safety and operational efficiency.

Leverage Funding Sources: Grants, municipal bonds, and PPPs (private-public partnerships) will be explored and pursued to fund infrastructure improvements, ensuring that the town does not carry the financial burden alone.

How much will Eldora sell for?

Based on sales of other mountains, we expect the cost to be around $100M - $200M.

How do we focus on our own infrastructure needs while also now bringing a new, potentially infrastructure-heavy asset, like Eldora, under Nederland ownership?

We are thinking about this question a lot. Even if we don’t end up acquiring Eldora, we are putting tactics in place to address ongoing infrastructure needs. Likely you’ve seen better streets operations this summer with our Summer Streets Rehabilitation program and our Public Works department continues to make upgrades and replacements at our wastewater treatment plant. With it being budget season, Town is considering pulling some reserves to address certain infrastructure needs in 2025.

With that said, acquiring Eldora would also enable Town to reinvest in our own infrastructure, through greater revenue generation both from the mountain itself and from better management of the visitors to Eldora that drive through Nederland. It is no secret that visitors to Eldora place a heavy toll on the town's roads, but the town also benefits when these visitors stop and support our small businesses. We envision a future where we continue to welcome visitors to Eldora and leverage that visitation, equipping Nederland with greater resources and revenue to address the infrastructure needs of the town and its residents.

What if we made Eldora the center of a Recreational District?

Yes. It would be the flagship of a future Nederland Recreation District.

Is Eldora profitable?

Determining the profitability of Eldora Mountain Resort is a crucial step in our evaluation process. As we advance, we will conduct a thorough review of the resort's financial statements to assess its financial health and sustainability. This due diligence will be integral to our decision-making as we consider potential actions regarding the acquisition of the resort.

Who will be responsible for negotiations to acquire Eldora? How do we manage the time it will take versus also focusing on other important matters?

Currently, Mayor Billy, Mayor Pro Tem Sterling, Town Manager, Jon Cain, and Town Attorney, Jennifer Madsen have been the primary contacts for conversations with the parties involved in Eldora’s sale. They have also been the communication bridge into the Board of Trustees. We expect our circle of expertise to expand as we move deeper into conversations.

Town Manager, Jon Cain, will be the main point of contact with the community and investors. If we see his time is overwhelmingly being usurped by the acquisition of Eldora, then we will make pivots to Jon’s scope of work to ensure he can focus on these higherlevel strategic projects for the town.

Will the town acquire dept for this acquisition?

Town will investigate all funding mechanisms. However, our intent is to prioritize funding that does not incur debt.

What talent do we have within Town to help make the decisions around acquiring Eldora?

The acquisition of Eldora will require folks with multiple diverse backgrounds. The Board of Trustees and town staff currently have folks with finance, operations, and over $100M acquisition experience. However, as we move further into the process our circle of expertise will expand to ensure we are mitigating all necessary risks.

What are the next steps?

Town is pulling together a coalition of supporters, investors, and partners in order to show POWDR we are willing and able to become Eldora’s new future. If you are an investor or know an investor who believes in our concept of a sustainably driven, locally owned, and community-centered mountain resort, please contact our Town Administrator, Jon Cain at townadmin@nederlandco.org.

A final message from the Board of Trustees

“Never underestimate the power of a small group of committed people to change the world. In fact, it is the only thing that ever has.” - Margaret Mead

Nederland, we are excited about the possibilities that lie ahead and we recognize there is a lot to work through. We know we still have a lot of information to gather and review. We know we need to balance our current needs with the needs of our future. However, this is a once in a lifetime opportunity. Eldora represents a natural and cultural icon in our backyard and if there is anyone who should take it under their care and nurture it, it’s us, who see ourselves as a town inside a park.

As we build a strong foundation of advisors and investors to help guide us in gathering and assessing information, we also invite you—our community—to share your thoughts, support, or concerns. Please reach out to us at bot@nederlandco.org or join us at our Board of Trustees meeting on Tuesday, November 19th at 7:00 pm.