NEDERLAND - The possibility that the Town of Nederland might acquire the Eldora ski area dominated the Board of Trustees’ (BOT) first meeting of the new year, on Tuesday, January 7, 2025. 

An Executive Session was held before the meeting regarding “consideration of and discussion of the Town’s purchase of property for recreational activities and other municipal services, to receive legal advice, and to instruct negotiators regarding the same.” 

At the start of their meeting the BOT approved, within the Consent Agenda, Town staff submitting a letter of interest for a Great Outdoors Colorado (GOCO) Land Acquisition Grant to assist in funding a fraction of the potential Eldora Mountain Resort acquisition. 

According to the Agenda Information Memorandum (AIM) prepared by Town Administrator Jonathan Cain, submitting this letter “imposes no immediate financial obligations,” and, if the grant is awarded, could  “substantially reduce the Town’s out-of-pocket costs” for acquiring the ski area.

Additionally, any requirements for matching funds would be brought before the BOT for review and a final vote.  

The Board also approved Resolution 2025-02, acquiring the services of Northland Securities as Town’s underwriter, a position necessary for compliance with federal securities regulations since the Town is considering municipal bonds for the pursuit of Eldora.

These regulations dictate that the Town hire an underwriter to “advise on the structure, timing, and terms of potential bond issuance; assist with rating strategies, official statements, and compliance documentation; and manage the bond issuance process if the Town decides to proceed.”

The underwriter’s compensation is based on the successful issuance of the municipal bonds, and is a percentage of the total bond amount.

Cain also led Trustees through an informational update regarding the Town of Nederland’s current position in the bidding process for the mountain. Town officials have identified a path forward for feasibly acquiring Eldora at a reduced risk, and have been invited to conduct a diligence investigation on the ski area’s operations.

The diligence process allows the Town to evaluate the potential risks and benefits of acquiring Eldora, in order to establish whether the ski area will remain a sustainable operation under the enterprise fund model the Town is planning to utilize.

Town representatives expect that running Eldora through an enterprise fund, similar to how water and sewer funds are managed, will protect the Town from financial risk.

Cain reiterated that additional information about municipal bonds, enterprise funds, and the diligence process has been compiled into an extensive FAQ document, which Cain, Town Attorney Jennifer Madsen, and the Board have helped to develop. 

For an up-to-date report on the Town of Nederland’s progress on the Eldora Mountain Resort acquisition, read “Nederland finds path forward for Eldora acquisition” here: https://www.themtnear.com/stories/nederland-finds-path-forward-for-eldora-acquisition,26154 .

To read the Town of Nederland’s FAQ 2.0, go here: https://www.themtnear.com/stories/faqs-20-eldora-mountain-acquisition,26473 .

Immediately following the informational report, Trustees were tasked with voting whether to approve Resolution 2025-03, permitting Cain the authority to seek special legal counsel regarding the Eldora acquisition.

According to the AIM, prepared by Cain and Town Attorney Jennifer Madsen, the desired counsel is expected to have expertise in “municipal law, real estate transactions, and resort operations.” Cain noted that the Town is also looking to attain an employment law expert. 

The hired counsel will review the structure of the potential transaction, advise the Town during the due diligence process, and support the negotiations with Eldora Mountain Resort and other stakeholders. 

The legal counsel is expected to be paid from the municipal revenue bonds planned on being used to facilitate the purchase of Eldora, with Cain to update the Board regarding the cost of such services. 

Trustee Luke Miller asked for clarification on how the legal counsel will be paid if a revenue bond is not issued. Attorney Madsen answered that the Town of Nederland will be responsible for the cost of the counsel, as well as the cost of the bond underwriter, if a revenue bond is not issued.

Addressing other issues, the Board reviewed Resolution 2025-04 for a final vote as to whether to approve a second amendment to the intergovernmental agreement with Boulder County Sheriff’s Office (BCSO).

The amendments would adjust the amount of daytime deputy staffing to 50% coverage, would include specificity in regards to invoice processing, and would reflect the “changes to the Town’s financial obligations consistent with the reduced service levels.”

Trustees emphasized that, though the amount of law enforcement coverage from dedicated deputies has been reduced, they have doubled the amount of extra duty coverage, which relates to traffic enforcement and court marshal duties, depending on those extra duty shifts being filled. 

BCSO Sergeant Jennifer Mendez spoke during the meeting about sharing the Town’s goal of building a relationship with the community, and also stated that extra duty shifts for January have been easily staffed. 

A motion was made to approve Resolution 2025-04, which was seconded and passed by unanimous vote from the Board.  

The BOT also discussed the potential of amending Ordinances 855 and 856, affecting the affordable housing deed restriction timeline and yard and bulk requirements outlined in Nederland Municipal Code, Section 16-33.

Town Staff are requesting direction from the Board on whether to amend the yard and bulk table, and whether to change the timeline for deed restrictions from 20 years, as it is currently set. Trustees also discussed whether to permit the Town Administrator, the Board itself, or another representative to be responsible for setting any and all deed restrictions. 

Community Planner Britt DeMinck explained that the Town of Nederland’s legal definitions of duplex, triplex, and fourplex, are causing issues with established yard and bulk requirements, affecting both new developers and private owners from creating affordable housing through housing options that promote density. 

As the Town is actively pursuing affordable housing development, DeMinck also discussed the creative actions being taken by neighboring communities to change their municipal code and allow for more affordable housing development.

DeMinck noted that some initiatives, which have been proven successful, could potentially be implemented in Nederland, such as putting in place a housing authority, and offering financial incentives or rent-to-own possibilities.

The BOT determined to have the Planning Commission review the timeline for deed restrictions, as well as the yard and bulk revision, as both issues are managed within the Commission’s jurisdiction, Nederland Municipal Code Chapter 16. 

Trustees also approved all 21 tenant leases for the Nederland Community Center for 2025; applying for a Colorado Department of Human Services grant to fund a Co-Responder; appointing Eryka Thorley to the alternate position on the Sustainability Advisory Board; and approved $27,734 for additional fees from the Town’s engineering consultants JVA regarding meeting requirements from CDOT and temporary construction easements impacting the Nederland Downtown Sidewalks Project.

The Nederland Board of Trustees meets on the first and third Tuesday of every month. The next meeting is scheduled for Tuesday, January 21, 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.