Nederland plans to purchase Eldora ski area amid community support and concerns

In the small town of Nederland, located about 43 miles northwest of Denver, Colorado, local trustees announced plans to purchase the Eldora Ski Area. This decision was officially communicated through a message posted on the town's website, introducing a timeline for the sale and emphasizing that the deal could be finalized by October. The current owner of the ski area, Powdr, had previously announced intentions to sell the resort during the summer. The municipal revenue bonds planned for the purchase are to be funded solely by the ski area's earnings, ensuring that municipal tax dollars will not be utilized for this transaction. Trustees believe that the ski area's annual earnings are sufficient to ensure the repayment of the bonds. To mitigate financial risks associated with potential bad snow years, the town plans to set aside a cushion of two years' worth of profits, projected at around $5 million annually. This arrangement aims to provide a financial safety net while promoting the ski area as a year-round tourist destination. Local business owners, such as John Thompson of the Mountain Man Outdoors Store, have expressed optimism about the plans, indicating that community engagement in the management of the ski area could contribute to its success. However, the community meeting held to discuss the purchase revealed significant concerns among residents. Questions arose regarding the potential financial impact on the town and the responsibilities of employing hundreds of workers at the resort. Town manager Jon Cain acknowledged these concerns while reiterating the importance of community involvement and expertise in making the venture successful. Some residents conveyed doubts about whether this plan would ultimately lead to costs borne by local taxpayers, especially in the context of potential increases in interest rates that could affect the financing of the purchase. Overall, while a significant portion of the community appears supportive of the purchase, there remain critical discussions about the long-term implications of owning and operating the Eldora Ski Area. The town is set to navigate the complexities of financing and management as they pursue this ambitious goal to enhance the local economy through tourism.