“Establishing this reserve in advance is a prudent step that protects the community’s interests and reflects the Town’s disciplined approach to financial management."”

Agenda Information Memorandum

NEDERLAND - The Nederland Board of Trustees (BOT) met on Wednesday, November 5, 2025, delayed one day because of Election Day on Tuesday. They reviewed a draft of the 2026 Town Budget, and, for the first time since July of this year, they held a public discussion regarding the acquisition of Eldora Mountain Resort.   

The Town of Nederland, with assistance from hired third party consultants and legal counsel, have undergone a lengthy due diligence process, which included a full evaluation of Eldora’s financial viability, and an assessment of all administrative concerns, from Human Resources structure to insurance coverage.

According to the Agenda Information Memorandum (AIM) prepared by Town Manager Jonathan Cain, the legal diligence included “an extensive review of title, contracts, permits, employment matters, water rights, and compliance with applicable federal, state, and local regulations.”

A Property Condition Assessment was conducted to determine the condition of the property’s infrastructure, and a Phase I Environmental Site Assessment was completed to ascertain the environmental conditions. 

With the due diligence process marked complete, the Town presented the resulting determination that the ski operation is “in good overall condition” and, with the hope of becoming a year-round operation, “has the potential to generate ongoing economic, social, and environmental benefits while preserving a key community amenity for future generations.”

An Asset Purchase Agreement, which sets a purchase price for the entire operation somewhere between $115 and $120 million, has been drafted and presented to the Board.

The agreement stipulates approval from the US Forest Service of a new special use permit, and an agreement with Alterra Mountain Company for continued participation with the Ikon Pass, to be required as “closing conditions.” 

Town staff expects to return with final drafts of the Asset Purchase Agreement and other documents pertinent to the acquisition  on November 18 for Board approval. 

The financing structure the Town plans to use for the acquisition involves securing revenue bonds through an established enterprise fund they have called the Mountain Recreation Enterprise Fund. The AIM states that RBC Capital Markets and Bank of America will be co-underwriters for the issuance of revenue bonds. 

Repayment of the bonds is expected to come from the resort’s operating revenues. Therefore, as a result of property or sales tax revenues being omitted from the repayment process, Nederland residents are free from any direct financial liability. Public vote will not be required for any actionable concerns regarding Eldora.  

A two-year debt service reserve is included in the Town’s financial planning, which serves as a “financial buffer” dedicated to cover debt payments in the event of financial insufficiency, such as the ski area’s revenue potentially being impacted by climate change. 

“Establishing this reserve in advance is a prudent step that protects the community’s interests and reflects the Town’s disciplined approach to financial management,” the AIM reads.

Town staff plans to bring the discussion on the financing structure before the BOT on December 2, with the expectation of seeking final approval from the Board on December 16.

Concerning the transfer of operational management, a two-year Transition Services Agreement with POWDR is being drafted in order to ensure a smooth change in ownership and control. This comes with it responsibility for “information technology, maintenance, human resources, accounting, and marketing.” 

According to the AIM, POWDR and the Town of Nederland are coordinating to maintain continuity regarding employee management, which includes maintaining benefits and retirement programs, while also reviewing and updating insurance coverage. 

With the opening day for Eldora Mountain Resort set for November 14, the Town has already led its first employee orientation.  

As the Town has been working under a non-disclosure agreement during the due diligence process, the BOT have not discussed the acquisition publicly since July, but have intermittently released Frequently Asked Questions (FAQ) documents to address resident inquiries. 

“Staff will continue to provide updates through Town Talks, community newsletters, and Board meetings, and will create additional opportunities for questions and discussion as needed,” the AIM states. “When the Board ultimately approves the acquisition, engagement will continue through implementation and transition planning.”

Mayor Billy Giblin specified that, although the Town and BOT would be hearing public comment, they would not be answering any questions, opting instead to address the community’s concerns through a FAQ document. 

Cain reiterated that there were still parts of the acquisition that would remain confidential, and that, legally, POWDR was not under any obligation to publicly disclose their financial information pertaining to their stewardship of the mountain.

Trustee Kristopher Larsen asked about the specifics of Eldora’s water rights.

Town Attorney Jennifer Madsen answered that the Town’s hired legal team reviewed all assets owned by POWDR, including their water rights, and based on that review the agreement was drafted to ensure that those water rights, and other assets, would go to the Town as part of the overall sale.

Cain addressed a question from Trustee Luke Miller regarding POWDR’s role during the transition of ownership. He responded that, as the Town will own the assets right away, POWDR will continue to provide IT, and their own software, as well as HR support, consulting services, and marketing expertise for a period of two years, which could be shortened or lengthened.  

Larsen asked how confident Town staff was about coming to terms on agreements with the US Forest Service and Alterra. Madsen detailed that the Town’s counsel has experience with the Forest Service and that the process has already begun despite the government shutdown, though if the shutdown persists, the Town may have difficulty securing the necessary permit before the close of the sale.  

 Before seeking a motion for adjournment, Giblin stated the Town’s intention to meet with the public in a more open setting for scheduled Town Talks. He also promised to meet with Nederland business owners as well as the community of Eldora in order to hear their questions and concerns about how, or if, they will be integrated into the Town’s plans for the ski area. 

The Nederland Board of Trustees meets on the first and third Tuesday of every month. The next meeting is scheduled for Tuesday, November 18, 2025, at 7 p.m. and can be attended either online or in person at the Nederland Community Center. 

For more information go to: https://townofnederland.colorado.gov/board-of-trustees.