FAQs 2.0: Eldora Mountain Acquisition 

Since our first FAQs, Town administrators have been collecting more information on making the Eldora Mountain Resort acquisition a reality. Below are a new set of questions from the community as well as updates. 

Where are we in the process? 

The Town of Nederland has partnered with a local group, who are veterans of the ski industry, and we have been invited to complete due diligence on the mountain, related to the real estate purchase and financial transaction. In addition, we have been invited to submit a final offer. If the final offer is accepted, then we will have to provide earnest money to secure the mountain. There will be various Board of Trustees votes along the way, starting with our January 7 meeting.

Why is POWDR selling the mountain? Is it profitable?

For those who missed it, Brent Tregaskis, President and GM of Eldora Mountain, wrote in his letter to the community that “POWDR is selling these resorts to balance its ski business with new ventures in the National Parks sector and with its Woodward action-sports brand, in alignment with its founders’ and stakeholders’ goals.” In the same letter, Mr. Tregaskis, wrote, “Eldora is profitable—with strong visitation, an amazing community of staff and guests, and great potential—and should be a very attractive purchase.” 

To read the full letter, please visit: https://www.eldora.com/the-mountain/about-contact-sustainability/blogs-and-news/a-letter-from-eldora-gm

However, as we mentioned in our previous FAQ, determining the profitability of the Eldora Mountain Resort is a crucial step in our evaluation process. As we advance, we will work with financial experts and Town Staff to conduct a thorough review of the resort’s financial statements to assess its financial health and sustainability.

This comprehensive due diligence process will also include evaluating the transaction from all angles, including the legal implications and operational considerations associated with the acquisition. Ensuring we fully understand all dimensions of this potential acquisition is integral to our decision-making. We recognize the significance of this effort and are committed to making informed, responsible decisions that serve the best interests of our community. 

Have discussions with private partners or investors taken place? 

Yes. We are currently in conversations with private entities, philanthropists, and impact investors. They see us as a viable partner because of our access to operating grants, the benefits we can provide to them and employees, and our ability to control the future land use of the resort. 

How will the Town manage the ski mountain if acquired?

We mentioned this in our first FAQs but we would like to add more detail.  

While the Town of Nederland is not equipped to operate a ski area directly, we are well-positioned to oversee its administration and ensure it aligns with community values. 

To address operational needs, the Town would lean on the expertise of local professionals and industry leaders to build a management team specifically equipped to run the mountain as a business. 

Eldora would operate independently from the Town’s day-to-day administration, ensuring it is managed by those with the experience and skills necessary to oversee a ski resort effectively. This approach allows the Town to focus on its role as a steward of the asset while empowering experts to run the resort in a way that supports financial sustainability, community benefit, and environmental stewardship. 

By drawing on the wealth of local knowledge and talent related to the Ski Industry that exists in Nederland already, we can ensure that Eldora reflects Nederland’s values while remaining a professionally managed and successful operation. 

How would the Town of Nederland finance Eldora? 

The Town, in cooperation with an independent local group, has been exploring both a private-public partnership and 100% municipal financing.

We believe the best path to financing would be to issue Enterprise Fund Bonds that are tied exclusively to Eldora Mountain Resort. We have received guidance from municipal bond advisors that the business can secure the debt necessary to purchase the business and continue to invest in the future of the business. 3 / 25

How would municipal bonds work? 

As mentioned in our first FAQs on the question of debt, we are open to exploring all viable mechanisms to ensure this project is structured in a way that is financially responsible and aligned with the Town’s goals. Municipal bonds represent one potential avenue to secure the necessary capital quickly, particularly given the timing limitations of many grant opportunities. 

However, by combining grants, municipal bonds, and other available tools, we aim to create a funding plan that minimizes financial risk to the Town while meeting our community’s needs. Here is some of our current thinking on funding: 

Enterprise Funds and Financial Protection

One potential approach is to establish an enterprise fund for this project. An enterprise fund is a financial structure used by municipalities to account for activities that are primarily supported by their own revenue, such as utilities or recreational facilities. 

In this case, the fund would manage all revenue and expenses associated with Eldora’s operations, including any debt repayment. 

By using an enterprise fund, the financial activities related to Eldora would be completely separated from the Town’s general fund and overall operations. This means any debt, such as through revenue bonds, would be repaid solely from the revenue generated by Eldora—not from taxpayer dollars or the Town’s general operating budget. This separation provides a layer of protection for the Town, ensuring that essential services and resources are not jeopardized. 

Flexibility to Explore Alternative Structures 

While an enterprise fund offers significant benefits, we remain open to exploring a range of funding mechanisms to identify the best structure for this project. This includes leveraging grants, considering alternative financing tools, or pursuing other options that align with the Town’s financial priorities. Our approach will be thoughtful and adaptable, with a focus on ensuring the financial feasibility and long-term success of the project. 

Commitment to Protecting the Town

The absolute goal of this project is to ensure that Nederland’s financial security is protected in every scenario. By structuring the funding in a way that isolates risk—whether through an enterprise fund, grants, or other means—we can ensure that the Town’s resources, essential services, and future remain safeguarded. 

While specifics are still being developed, we are committed to designing a responsible, sustainable funding structure that benefits both the Town and the broader community. 

Can we take out municipal bonds to pay for sidewalks and infrastructure? 

The type of bond being considered for the purchase of Eldora is a revenue bond, which is fundamentally different from bonds that might be used for other infrastructure projects like sidewalks. 

A revenue bond is tied to an enterprise fund, meaning the debt is repaid solely through the revenue generated by the associated enterprise—in this case, Eldora’s operations. Sidewalks and other infrastructure projects do not generate revenue, so this type of bond cannot be applied to those projects. 

For infrastructure needs, the Town has other funding options, including: 

• 1. General Obligation Bonds: These bonds are backed by the Town’s taxing authority and can be used for projects that benefit the community as a whole. They typically require voter approval and are repaid from general revenue sources, not tied to a specific project’s income.
  2. Grants and Dedicated Revenue:Nederland already has dedicated sales tax revenue allocated to the streets fund, which provides an ongoing source of funding for infrastructure projects. Additionally, grants specifically targeted for sidewalks and other infrastructure improvements are available and represent an important funding mechanism. 

The consideration of a revenue bond for Eldora presents a unique opportunity to undertake this project without using general funds or impacting other resources that can be applied to infrastructure needs. 

By structuring the financing for Eldora through a self-contained enterprise fund, we ensure that the Town’s general operations and financial resources remain available for critical infrastructure improvements and other community priorities. 

Are residents required to vote on the acquisition if debt is used to fund the purchase?  

The Town would work closely with legal counsel to ensure that any acquisition is fully compliant with legal requirements. One potential structure for the purchase is the establishment of an enterprise fund. 

An enterprise fund operates as a standalone business within the government, meaning it generates its own revenue and manages its own expenses, entirely separate from the Town’s general operations. This financial separation ensures that the enterprise fund is self-sustaining and does not rely on the Town’s general  funds or tax revenues. Presently, The Town of Nederland's Water and Sewer Funds are examples of enterprise funds. 

Under the Taxpayer’s Bill of Rights (TABOR), an enterprise is a government-owned business that can issue revenue bonds without requiring voter approval. A key feature of revenue bonds is that the debt is repaid solely from the revenue generated by the enterprise’s operations—not from the general funds of the municipality. This ensures a clear and legal separation between the enterprise fund and the Town’s general operations budget. 

In this scenario, if revenue bonds were issued to fund the purchase of Eldora, the revenue generated from the mountain’s operations would directly fund the debt payments. The enterprise fund’s financial activities—revenues, expenses, and debt obligations—would be entirely separate from the Town’s general budget and core operations. 

To recap: 

• · What is an enterprise fund? An enterprise fund is a government-owned business that operates independently. It generates its own revenue and covers its expenses without relying on taxpayer funds or municipal budgets. Common examples include utilities like water or sewer services, or recreational facilities like municipal golf courses.
  

• · What can an enterprise fund do? Under TABOR, an enterprise may issue revenue bonds without voter approval, allowing it to fund large projects or acquisitions without impacting the Town’s general funds.
  

• · How do revenue bonds work? Revenue bonds are repaid solely from the revenue generated by the enterprise’s operations. For example, in this case, revenue from Eldora’s operations would fund the debt payments, and only the enterprise fund would be responsible for these obligations.
  

• · Why is this important? The financial independence of the enterprise fund minimizes financial risk to the Town. The general fund and operational budget would remain completely separate and unaffected, ensuring that essential municipal services continue without interruption or risk.
  
  

This structure provides a robust and legally compliant framework for pursuing the acquisition while safeguarding the Town’s core operations and financial stability. 

Would the Board of Trustees consider sending this issue to a vote?

It is unlikely that the Board of Trustees would send this question to a vote. The reason is that the Town is not dictating the timeline. This is a real estate transaction and Town does not have control over the timelines. 

Who approves if the town doesn’t go to a vote? 

The Board of Trustees will approve the acquisition of Eldora through a series of votes at different stages of the process. 

Will the purchase of Eldora take away from funding other civic projects? 

No, because Eldora is a profitable and healthy business, any debt secured to finance the ski area will be solely tied to the performance and profits of the business.   

If the ski area isn’t profitable for certain years or goes bankrupt, is the town ultimately responsible? 

No. With the type of funding structure proposed, the lenders can influence how we improve the business to generate greater income but cannot cross into the town’s finances. 

If the ski area is profitable, will those funds trickle down into the town? 

Yes.  Once debt obligations are fulfilled, including rainy day funds to cover lean years, any leftover profits will be available for the town. 

What grants are available to help fund the acquisition? 

Potential funding sources include federal and state grants for rural infrastructure, economic development, and environmental conservation. We have had conversations with State Leadership at the Governor's Office, DOLA, OEDIT, CPW, GOCO, and Congressional Leadership. More clarity about possibilities will come as we move forward in the process. The town is actively pursuing grants for the acquisition.  

But, can’t you just take the grants you would use for acquiring Eldora and put it toward building sidewalks? 

Using grants for the purchase of Eldora like natural resource preservation or driving eco-tourism cannot be used to build out sidewalks in town. In 2023 we tried getting grants to replace the crusher sidewalks and help build out our sidewalk infrastructure downtown, but we were denied. We will continue to pursue grants to fund our sidewalks. 

What will the governance structure for Eldora look like under Town ownership? 

The Leadership of Eldora has done an excellent job of running the mountain, and they are local to our community. We intend any governance structure to enhance their leadership, and the final structure will be determined based on the outcomes of the acquisition process and the operational needs of the resort. 

While the exact details remain to be seen, our intent is clear: the resort will be managed professionally, with operations overseen by experts who have the necessary experience to run the mountain efficiently and effectively. 

We are committed to ensuring that any governance structure supports the resort’s sustainability, financial health, and the delivery of benefits to the community. As we move forward, we will keep the public informed and involved in shaping this vision. 

How can community members participate in or support the acquisition? 

Nederland is committed to making this acquisition a truly community-driven initiative. We are exploring ways for community members to actively participate in shaping and supporting this effort. Some options under consideration include: 

Community Ownership Opportunities: Models like community crowdfunding, cooperative ownership, or shareholder participation that would enable residents and stakeholders to have a direct stake in this initiative. 

Co-Production and Collaboration: We're seeking ideas, input, and hands-on involvement from residents to ensure this effort reflects our collective vision and strengths. This process is about working together — residents, organizations, and the Town — to co-create a solution that benefits our community. 

Building on Community Assets: The Community in Nederland has a wealth of knowledge, skills, and passion. This effort aims to tap into those existing assets, fostering collaboration and maximizing community strengths. 

Stay tuned as we refine these possibilities and learn more about the best ways for everyone to participate. We encourage community dialogue and look forward to working together to make this vision a reality.  

Where would capital come from for repairs or modernization? 

If the Town acquires Eldora, it will be managed as a business with a clear focus on financial sustainability. A detailed capital plan would be developed to ensure that necessary repairs, equipment upgrades, and modernization efforts are adequately funded. 

As a municipal entity, we would also leverage our unique ability to access state and federal grants to support these efforts where applicable, further strengthening the financial position of the mountain and its operations. 

How will the Town ensure that all voices, including recreational and professional communities, are heard? 

We are actively engaging local stakeholders, including recreational organizations, to understand their unique needs and opportunities for collaboration. In fact, we have received letters from representatives of Boulder Nordic Club, Peak to Peak Endurance, and Boulder SkiMo Club, all local recreational groups.

Their desire to expand winter opportunities at Eldora is loud and clear, and these organizations see the Town of Nederland being uniquely positioned to advocate for their efforts to help Eldora turn out the next generation of Olympians. 

Beyond fostering athletic excellence, this initiative has the potential to bring wide-ranging community benefits. Expanding winter recreation can boost our local economy by supporting small businesses, creating job opportunities, and attracting visitors who appreciate the charm and amenities of Nederland. 

It also promotes healthy lifestyles, outdoor education, and youth engagement, strengthening our community's connection to the land and each other. Additionally, inclusive access to winter sports can ensure that all residents, regardless of background, have opportunities to participate in and benefit from Nederland's recreational resources. 

By supporting this effort, we are investing not only in sport but in a thriving, resilient, and connected community for generations to come. 

With all that said, the Town is committed to continuing to engage local stakeholders. We encourage all community members – as individuals or representing organizations – to reach out to the Board of Trustees, bot@nederlandco.org, or Town Administrator Jon Cain, townadmin@nederlandco.org, with thoughts, concerns, or ideas.   

Will locals receive discounted ski passes or other benefits? 

If the Town acquires Eldora, ensuring accessibility and affordability for locals will be a major priority. Nederland recognizes the rising cost of skiing and how important it is to keep this experience within reach for a wide range of community members. 

We are actively exploring options such as discounted rates for residents, need-based programs, and other community initiatives that could maximize local benefits. These priorities must also be balanced with ensuring that the operations of the mountain remain viable in the future. 

It is still early in the process, and we are continuing to explore what will be possible. We are committed to increasing affordability while ensuring that operations on the mountain remain resilient. We will keep the community informed as we learn more and develop plans. 

How will the public stay informed about the potential acquisition process? 

Nederland is committed to transparency throughout this process. Regular updates will be provided through town meetings, newsletters, and the Engage Nederland platform. As soon as we have information that can be shared publicly, the community will be informed promptly. 

That said, some aspects of this potential acquisition require confidentiality to ensure negotiations are successful and in the best interest of the community. Our goal is to balance the need for discretion related to confidential proprietary information with our commitment to keeping the public informed. 

Our intention is to share information as soon as it’s appropriate and to conduct this process publicly as much as possible. 

Furthermore, we are tracking comments and appreciate the feedback from the community. Your comments help us strategize ways to move forward.

Town Administrator Cain is always available to discuss concerns or questions. Please feel free to reach out to him directly at townadmin@nederlandco.org.  

Why aren’t private companies looking to purchase it? 

We should assume that there are other private companies looking to purchase the mountain, but because they are likely under a nondisclosure agreement for evaluation of the Eldora’s financial status, you won’t read about them in your local newspaper