The Town of Nederland announced on Tuesday that it is officially under an agreement to purchase Edlora Mountain, which could be finalized by the beginning of October if everything goes according to plan. Eldora General Manager Brent Tregaskis announced last August that parent company Powdr was selling the ski resort as the company prioritizes new investments for national park adventure experiences.
Nederland began discussions with Eldora last fall and held a Board of Trustee meeting on January 7 to explore the potential options for acquiring the ski resort without impacting the town’s general fund. After months of planning and negotiations, the town is now moving forward with the purchase by utilizing municipal revenue bonds backed by the resort’s earnings. The resort is profitable enough to cover the cost of the debt, so there will be no use of tax dollars in the acquisition process. There is no risk to the taxpayers. Nederland will also be considering options for grants and private-sector dollars to help pay down the debt.
Eldora will continue to be included as a resort on the Ikon pass. Powdr will provide operational support for the first two years. 303 Ski, described as “a coalition of front range ski-industry veterans,” is announced as a local partner that has helped with operating plans, financial modeling, and community programing. 303 Ski will provide operating support for Eldora when the two year contract (two winters and two summers) with Powdr expires.
The town statement says they cannot disclose exact figures, but they hope to build up a $10 million reserve in the first couple years and pay off the subordinate bonds within 10 years. At that point, according to the statement, the town expects to have “free case flow” between $2 million and $5 million that will be used to invest in city streets, sidewalks and water infrastructure.
