Nederland trustees to review Eldora acquisition budget Nov. 5
The town says resort revenue would repay proposed bonds, but its earlier purchase agreement with owner POWDR expired and any deal would require updated terms.
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Nederland trustees plan to review the budget for a possible town purchase of Eldora Mountain Resort on Nov. 5. They took no acquisition vote at their Oct. 20 meeting.
Mayor Nichole Sterling said trustees would have a more detailed budget discussion on Nov. 5 and expected to provide updates at future board meetings. The town’s Sept. 30 update from Sterling and the Board of Trustees said resort revenue would be the primary source for repaying proposed bonds. The town also said its earlier purchase agreement with resort owner POWDR had expired and that, if financing proceeds, it would negotiate updated agreements and work toward a closing schedule.
The town estimated about $2.5 million in transaction-related costs. Its update said those costs would be reimbursable from bond proceeds if the deal closes, or paid from the town’s CSAFE investments if it does not. At the Oct. 20 meeting, Trustee Chris Larson said ending the purchase effort would leave the town to find room for the costs in its general, wastewater and water-treatment funds.
The town’s Eldora FAQ 6.0 describes terms authorized for the expired agreement, not a current deal. It says the asset purchase price would start at $120 million, subject to adjustments, and proposed bonds would be issued through the Mountain Recreation Enterprise. Under those earlier terms, Eldora operating revenue—not property taxes, sales taxes or the town’s General Fund—would repay the bonds, which the FAQ said would not be debt of the town itself.
The FAQ also described a plan to use existing resort managers and staff for day-to-day operations, with POWDR providing transition support. In its September update, the town said its financial model used interest rates closer to 8.5% and projected resort revenue could cover debt payments, maintenance and reserves. The town identified weather, interest rates and operating performance as risks. It also described seeking about $20 million in philanthropic funding for potential projects, separate from required bond payments.