Local support is high for Nederland’s recently announced bid to buy Eldora Mountain. Imagining what a community-run resort could offer has driven people into a frenzy of anticipation. But financial risks and limited control over future land use — with some of the mountain sitting on leased Forest Service land and other areas eligible for annexation — have left many questions unanswered, even as the town board aims to close the deal in October.
POWDR, which bought Eldora in 2016 and has significantly updated it over the years, announced last August that it was looking to sell. On July 8, after almost a year of quiet talks between the company and Nederland, along with some community input, Nederland’s board of trustees announced it had submitted a letter of intent to buy the resort. While the sale price has not been disclosed, estimates range from $100 million to $200 million, based on the 2024 sale of Arapahoe Basin for $105 million.
POWDR did not respond to questions about whether the timeline for an October close is reasonable in its view, but Nederland Mayor Billy Giblin said the next few months will involve continued due diligence and negotiations. No final commitments have been made, and the town can still withdraw from the deal at any time.
Since purchasing the resort, POWDR has invested millions in improvements. According to Stacey Hutchinson, POWDR’s vice president of communications and government affairs, upgrades include a 50% expansion of the parking lot (adding 800 spaces for a total of about 2,400), the new Caribou Lodge, the high-speed six-person Alpenglow chairlift that halved ride time to five minutes and three major new trails. Other improvements include solar power at the Nordic Center and fleet upgrades like snowcats and groomers.
These changes, along with uphill access and participation in the Ikon pass, have made Eldora a busier attraction and a profitable resort, according to the Nederland Board of Trustees. (The board is under a nondisclosure agreement with POWDR, a private company, and cannot discuss private financial details.)
Still, residents have raised concerns, especially about financial risk — namely, whether they’ll be held liable if things go sideways.
The financing plan includes setting aside a two-year cash reserve for emergencies, according to the FAQ on the town’s July 8 announcement. That reserve could be critical on low-snow years, for example. The town would use municipal revenue bonds to make the purchase, with private investment helping to pay down the debt. Because the bonds would be repaid using only resort revenue, residents would not be liable, according to town officials.
However, if the resort fails to generate enough revenue to repay the bonds, it could damage the town’s credit rating, making it more expensive to borrow for future projects. In a worst-case scenario, the town could theoretically divert funds toward the debt to avoid default, or pursue bankruptcy — a rare outcome, but one that’s possible in cases like this, according to research on similar financing structures, particularly given Nederland’s limited resources and the high cost of mountain operations.
A bold move like this certainly is not without risk, and the town, it seems, is up for the challenge.
A town of 1,500 — and 700 new employees
According to Hutchinson, POWDR has never done a transaction like this with a town. Nederland, with a population of about 1,500 and just 26 municipal employees, would suddenly be responsible for 700 more, though it’s unclear how much oversight the town would have over the mountain staff. Officials say they plan to create a new position, director of mountain operations, that would interface with the resort team.
While some Eldora employees said they hadn’t been informed about the sale, the town has said workers would keep their jobs and pay, with no need to re-interview. However, benefits would change to the most equivalent version based on municipal employee options.
Many residents see the deal as a net win for the town. According to the FAQ, once the resort debt is paid off, estimated to take about a decade, it could generate $2 million to $5 million in free cash flow annually. That money could fund town projects like sidewalks and water infrastructure. The projected revenue is nearly the size of Nederland’s entire 2025 operating budget of about $5.5 million.
If the resort is annexed, meaning its privately owned areas become part of the town, Nederland could also collect an estimated $1 million to $2 million in additional tax revenue each year. Annexation would give the town more flexibility over land use by bringing those areas under municipal control. Sections of the resort that sit on Forest Service land would still be governed by federal restrictions through a special use permit. Currently, the resort spans parts of unincorporated Boulder County, Gilpin County and Roosevelt National Forest, with only 220 of its roughly 1,200 acres owned directly by the resort.
The deal has also fueled speculation about future housing development and expanded summer offerings, such as a mountain bike park. That prospect has excited outdoor advocates across the area.
“We definitely hope that Nederland will move forward with a summer product,” said Wendy Sweet of the Boulder Mountain Bike Alliance, who has spoken with people at Eldora about the idea of a bike park in the past. “Though I am aware of the complications with the U.S. Forest Service permit and how many summer visitors are currently allowed.”
Residents raise questions, and celebrate potential: ‘Idaho Springs should be jealous’
At a town hall last week, officials heard dozens of public comments but did not respond in real time. The town plans to post another FAQ to address questions raised there. Eleven people sat on stage, including Mayor Giblin, Town Administrator Jon Cain and people from 303 Ski, a group being referred to as industry veterans, which is helping with the negotiations process and will partner with the town to help run operations after POWDR phases out in two years.
There were many congratulatory comments, concerns about development and infrastructure costs downstream from the resort, and potential disasters.
One commenter brought up wildfire risks. Not long ago, the Cal-Wood wildfire forced the Forest Service to shut down operations at Eldora. At the time, the resort was far enough away from season opening that it didn’t have much impact. But the commenter’s concern was about the potential for future disasters to impact revenue and leave the town on the hook somehow.
A resident who owns ranch land between the town and the resort was concerned about how development could impact traffic and wildlife that passes through the area.
Another resident, Dan Vardamis, who coaches the Eldora Nordic team, said he was happy about the prospect of a community-driven ski resort because he said Colorado is mostly destination resorts. He’s confident in this playing out.
“I’ve boot-fit some of the people up here, and you guys know what you’re doing so … There’s going to be challenges for sure, but I think we can work through it and make it good.”
But as a coach, he said his team is suffering from the Nordic Center’s increasingly later opening dates. He wants to see that change.
“I’d love to turn Eldora into a real Nordic mecca,” he said.
In the end, it felt like a celebration of the potential deal that many people have long dreamed of.
According to one commenter, “Idaho Springs should be jealous.”
I would like to have a car round about on the road where the road to Eldora meets the main highway,
I too would like to see the Nordic Center expanding and becoming a real Nordic “Mecca” to rival the YMCA’s Snow Mountain Ranch.