The Nederland Board of Trustees voted unanimously Tuesday night to approve the $120 million purchase of the Eldora Mountain Ski Resort, bringing an end to the town’s roughly 16-month effort to capture ownership of the closest ski resort to Denver.
Nederland will pay for the purchase through revenue bonds that are backed by the resort’s earnings, including those from lift ticket rentals, food and drinks, and other activities at the resort. The town says that residents are not responsible for repaying those ponds, nor is the town’s general fund on the hook. Once the debt is paid off, Nederland has said, free cash flow could exceed $5 million. Nederland announced its intention to purchase Eldora in July and has been exploring the possibility since August 2024.
Nederland, a town of about 1,500 people nestled next to the Barker Reservoir, is purchasing Eldora from POWDR, a Utah-based company that bought the resort about a decade ago and also owns Copper Mountain. POWDR will continue to operate Eldora for the next two winters. From there, the company 303 Ski will operate Eldora. The town believes it can build a financial reserve in the first few years of ownership that would cushion the blow of a bad snow year. Eldora’s 700 employees will become municipal staff.
Nederland also plans to annex the mountain, which will allow it to collect sales tax revenue and control land use. The town anticipates that sales tax revenue could bring as much as $2 million annually.
A memo to the trustees says that the resort’s facilities and core infrastructure are well maintained and are positioned to support continued and sustainable operations.
“The resort is in good overall condition and represents a high-quality, viable asset for the community,” the memo says.
As the purchase enters its closing stage, Nederland now needs to obtain a special-use permit from the U.S. Forest Service that’s on “substantially the same terms” as the current permit held by Eldora, according to the asset purchase agreement. Nederland must also enter a new agreement with Alterra Mountain Company to stay on the Ikon Pass.
Through the asset purchase agreement, Nederland purchases “key assets” that are vital to keep the ski area operating, from land to buildings to equipment to permits.
Bank of America and RBC Capital Markets are co-underwriters for the revenue bonds.
Ned heads and Eldora powder hounds were cautiously optimistic in a July community gathering about the town’s move to purchase the mountain. Some saw it as potentially a big risk, while others saw it as an opportunity for the small town to bring in more revenue and open the mountain during the offseason.
Town officials said that there will be more community engagement opportunities about the purchase in the future.
