Tuesday, July 8th, 2025, 2:15pm
What’s Happened Since January?
Hello, Nederland! We are buying Eldora!
Thank you for your patience while we were under a confidentiality agreement and worked to secure one of the greatest economic development drivers for our little community. Here’s a snapshot of the key milestones the Town can now share with everyone:
Negotiation timeline. Talks began last fall, accelerated after January 10, 2025, when the town signed a confidentiality agreement, and reached the signed term sheet on July 8, 2025. A term sheet is a high-level “rulebook” both sides will follow as we negotiate the final purchase agreement. If all goes smoothly, we could finalize the purchase by the beginning of October 2025.
Paying for Eldora. The Town will issue municipal revenue bonds backed only by the resort’s earnings, which is profitable enough to service the debt. The revenue bonds will not be backed by local tax dollars. This avoids risk to the taxpayers. The Town will also be exploring opportunities for grants and private-sector dollars to help lower the total debt.
Keeping the pros in place. POWDR will continue to support the mountain for the first two winters and summers. The Town will also create a new employment position titled “Deputy Town Manager, Executive Director of Mountain Operations” to interface between the Mountain and the Town Government.
“Not-to-exceed” price tag. In the coming weeks, the Board of Trustees will consider for approval a “Bond Resolution” that will approve a not-to-exceed ceiling amount so residents will know the maximum debt the Town can assume, even if the final purchase price is lower.
Deep-dive diligence. Over the past several months, the Board has authorized contracts with different legal, financial, and environmental teams with the purpose of completing all the diligence and legal work required for this purchase. This team is combing through every lease, permit, and lift-maintenance log. It is imperative the purchase makes financial sense for the Town and this team of experts has helped us understand and mitigate the risks associated with the acquisition.
Early bond market numbers. Our financial underwriters have modeled several interest-rate scenarios; the preliminary range is 6% to 8%. Exact pricing will come later, when the bonds are actually priced.
Ikon Pass stays. Eldora will stay on the Ikon pass. Ikon sales provide a stable revenue stream and keeping that as a part of the funding is essential to the financing plan.
Local partner on deck. While the POWDR team will continue to support Eldora under a two-year agreement, the Town will partner with 303 Ski, a coalition of Front Range ski-industry veterans, who have been instrumental in vetting operating plans, conducting financial modeling, and assessing community programming. 303 Ski will plan to support the mountain once POWDR’s contract expires. More details to follow. The Town of Nederland is incredibly thankful to the 303 Ski team, and we are proud to finally announce our partnership.
Full financial data in hand. The seller has opened its books to Town leadership, underwriters, and advisers, allowing us to fine-tune projections. While we cannot disclose exact figures, we can share that mountain revenue will cover our municipal bond obligation. Current models show we can build a reserve of $10 million in the first couple of years. This reserve will sit in the Mountain Recreation Enterprise Fund to pay debt obligations during poor snow years. We also project some excess cash flow; however, this does not become meaningful until the subordinate bonds are paid off - something we aim to accomplish within ten years but hopefully sooner through grants and donations. After that, free cash flow will fall between $2M - $5M+, and we can reinvest those funds in streets, sidewalks, and water infrastructure.
More Frequently Asked Questions
Some questions below will be familiar from FAQs 1.0 and 2.0; others address topics we expect you to raise. Because some details are still evolving, please look for FAQs 3.5 in a few weeks. Email BOT@nederlandco.org if we missed anything. Please note we still have a confidentiality agreement in place that will limit some of the topics we can talk about.
Why is Nederland trying to buy Eldora at all?
Nederland aims to turn Eldora into a year-round, community-driven asset - expanding recreation, sparking local jobs and outdoor industries, and weaving sustainability and social equity (i.e. workforce housing) into every run, trail, and event. These economic development opportunities will give the Town a long-needed, sustainable way to fund infrastructure.
What’s the expected purchase price?
The exact price will remain confidential; however, the Board of Trustees must approve a not-to-exceed bond amount that covers the acquisition, and the consultants and advisers needed to close the deal.
How will the Town pay without raising taxes?
Revenue bonds tied to Eldora’s earnings (lift tickets, Ikon payments, food, rentals) will cover the cost. Because the bonds sit inside a stand-alone enterprise fund, taxpayers and the general fund are insulated.
Why will we use Municipal Revenue Bonds?
Throughout this process, we have explored multiple options and ways to finance purchasing Eldora. We determined municipal bonds is the best path forward - protecting the town's existing resources while also creating a pathway to increased revenue for the town in the future.
Will residents vote on the bond issue?
Nederland will be using a financing structure known as a Revenue Bond to purchase Eldora. A few months ago, the Town created a new enterprise fund, “Mountain Recreation.” Enterprise funds are unique in Colorado as they do not get their funding from taxpayer dollars, but from the revenue generated by business activities. Under Colorado’s TABOR rules, because enterprise funds do not use taxpayer dollars, a public election is not required for the purchase. That said, the Board of Trustees will still hold several votes during public meetings at each major step of the process.
What happens if Eldora has a bad snow year?
The financing model includes reserve funds of approximately $10 million, plus conservative skier-visit projections, to mitigate that risk.
How will we account for regular maintenance at Eldora?
The budget allocates $2 million for routine capital maintenance each year.
Will locals see cheaper passes?
The programming we can implement in the first few years will be dependent upon the final purchase price when we place the bonds and the free cash flow available after the deal is done. While accessibility is a priority, we must also prioritize paying off our debt obligation so we can capture more free cash flow and reinvest it into our community. If you have ideas on creating accessibility, email BOT@nederlandco.org with your ideas.
Does this purchase pull money away from sidewalks or the wastewater plant?
No. Sidewalks and utilities rely on different funds and taxes. Because Eldora’s bonds are self-supported, they do not affect other municipal projects. Excess Eldora enterprise fund revenue can, however, fund additional Town needs after we pay off our subordinate bonds.
Will the Town annex the mountain?
That is the plan. After the acquisition, annexation would let the Town control land use (for example, enabling summer activities) and collect sales tax, which could add $1M - $2M in annual revenue to the Town’s general fund.
What will happen to the current employees of Eldora?
While POWDR will support the mountain during the transition, all current Eldora employees will become Town employees, adding about 700 people to our municipal staff.
What Does it Mean to Be a Town Employee?
When the purchase closes, Eldora employees will join the Town of Nederland staff. The Town and our partners at 303 Ski are excited to welcome you.
POWDR has been a thoughtful and committed steward of Eldora. Its Play Forever culture has brought a clear focus on sustainability, innovation, and care for both guests and employees. That legacy is valued.
While we will continue the solid work POWDR has done to keep the mountain innovative and profitable, municipal ownership brings a different set of tools. It allows the Town to invest in infrastructure through public channels, apply for grants that support workforce needs, and offer benefits such as retirement and healthcare through public service structures. These tools reflect the resources available to municipalities and offer new ways to support the same people who have always made the mountain run.
This is also a chance to think about what becomes possible when a town and a mountain grow more connected. What if Eldora and Nederland worked together on housing, childcare, and transportation? What if public service pathways make it easier for mountain staff to stay and grow in the community, they already call home? What if Eldora and Nederland’s local businesses teamed up to boost each other’s success?
We believe in long-term support and the potential to bring new benefits into a culture that is already strong. Our goal is to design a structure that will support Eldora’s workforce with stability, strong systems, and new options for sustainability without disrupting the core culture that already works.
This is not a departure from what has come before; it is a commitment to carry it forward with care and gratitude.
Our goal is to use every tool at our disposal to build employee resiliency and sustainability. Our people are your people. For decades, Nederland residents have worked at Eldora: they coach youth sports teams, volunteer in emergencies, and wait in line at the post office. They drive the same canyon roads, face the same storms, and share the same sense of pride in our mountain community. They are the reason Eldora feels like more than a resort; they are the heart of a mountain that belongs to the region. This is why we feel so deeply about offering strong benefits, coordinated childcare, and as much year-round employment as we can. We ask for your patience as we finalize the details. We are firmly committed to making this work—not just for Nederland, but as a model for both local governments and the entire ski industry.
Nederland is a town rooted in character, community, and connection to place. Built on land first stewarded by the Ute and Arapaho peoples and shaped by miners, artists, and families who chose a life in the mountains, it has always honored those who do the work.
Now that ethic extends even farther up the hill.
We hope Eldora employees will embrace our history and our flair for the fun and eclectic. We share Eldora’s passion for the environment and for making outdoor experiences accessible to everyone. From you, Eldora, we aim to learn the professionalism, exceptional customer service, and operational discipline that make the resort one of the region’s greatest community assets. Our goal is to support that excellence and to continue delivering what people in this community have come to expect.
The lifts will still run the same as now. The trails will still be shaped by the same hands. What changes is the support around them. What grows is a shared future between the people of Eldora and the people of Nederland, who have always been part of the same story.
This is how a town and a mountain move forward together—with trust, with partnership, and with respect for everything that has come before. We Got This!
We anticipate you will have many questions. Here are a few we’ve crafted for the time being:
Do I keep my job? We will transition all active employees to town employees.
Will my pay go down? No.
What about benefits? Your current benefits will transfer to the most equivalent Town plan; our aim is to enhance coverage.
Do I have to reapply? No, but paperwork will need to be completed to document the transition.
Will my seasonality change? Not immediately. We hope to add summer programming in the near future.
Will there be new training? Possibly. Some municipal policies require specific training; details are under review.
Where do I ask follow-up questions? Nederland’s Town Manager Jon Cain will host Eldora employee town halls. Watch for dates or email Jon at townadmin@nederlandco.org with any questions.
Updated Message from the Board of Trustees.
“You must do the thing you think you cannot do.”
— Eleanor Roosevelt
We promised from the beginning that we would bow out of this opportunity at any point if it didn’t make sense. 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.
To the POWDR team: Thank you for stewarding the mountain thus far. We take our responsibility seriously and we are forever thankful for your belief in us to continue your legacy.
We want to thank all the rest of the municipal governments who have been rooting for us.
Thank you, 303 Ski, your partnership means the world to us. We couldn’t have done it without you!
And, thank you, Nederland! We look forward to crafting this new future together. Keep writing us, keep coming to our board meetings to share your thoughts – both constructive and supportive. We need to hear it all. Email us at BOT@nederlandco.org .
Sincerely,
The Nederland Board of Trustees