Dear Editor,

I love Eldora! It’s a great mountain and a tremendous asset to Nederland.

I’m an avid Eldora skier and submitted questions (to FAQ) regarding Nederland’s potential Eldora purchase.

My questions focused on how the town will handle capital improvements. I was not asking about new lodges or terrain expansion, but rather how the town will make required upgrades to existing improvements, specifically the aging chairlifts, to keep Eldora competitive.  

Two things are clear to me as an Eldora skier:

1. Had POWDR not invested in the high-speed detachable Alpenglow lift (replacing the fixed double and triple) Eldora would not be the ski area it is today. 
   

2. Eldora will require significant capital investment to remain competitive in the Colorado ski market.  

The Corona chairlift is a 28-year-old, fixed quad, servicing extensive terrain – it’s critical to Eldora’s continued success. During some high-capacity days, lift ops have limited loading, run at slower speeds, even closing it, requiring skiers/boarders to hike out. I noted these potential mechanical issues given the importance of the Corona lift. 

The Town’s FAQ response was:

“No decisions have been made regarding immediate repairs to, or replacement of, the Corona lift.”

 “Following the acquisition, the Town expects to engage in broader planning to evaluate capital improvement needs and long-term priorities across the mountain.” 

I question why this evaluation would take place following the acquisition. When considering a $120M purchase, shouldn’t capital repairs/improvements be reviewed during due diligence? A capital improvement plan, budget and schedule are essential to maintain Eldora’s market relevance. Based on other town purchases of ski areas, I’m concerned with Eldora becoming an underfunded, outdated ski area and less of an asset to Nederland.

The FAQ response continued:

“Separately, the bond documents are anticipated to include a mechanism for setting aside a portion of available revenues for capital improvements, including lift-related needs.”

This point likely determines how Eldora will fund capital improvements, following the town’s acquisition. What specifically do the bond documents state? Can funds be set aside at bond closing for capital improvements, specifically chairlift replacement? Research indicates a high-speed lift can cost between $6M-$10M. 

Acquisitions of this scale are complex and complicated; further exacerbated when a governmental entity decides to acquire a successful private sector business. The acquisition process, ongoing operations - including capital improvements - are typically executed by experienced companies within the industry. Companies with vast knowledge, expertise and capital. Has this been underestimated, can the town strategically operate Eldora better than the private sector?

I respectfully acknowledge the extensive hard work and dedication by town staff and elected officials to evaluate the Eldora acquisition. However, I think the continued limited transparency and scripted responses - due to non-disclosure agreements - should give everyone involved pause and additional consideration, particularly given the residents do not have a vote on this massive purchase and ultimately the future of Eldora.  

Maintaining Eldora as a vital asset to Nederland will require a full commitment from future ownership to substantial capital investment.

Mike Tamblyn

Nederland