Since Powdr announced plans to sell its Eldora Mountain Resort in August, the town of Nederland has been scrambling. Could the 1,500-resident Boulder County community raise the money to buy the 680-acre ski hill just outside town boundaries?
“When this opportunity came up, it was important for us to think about it seriously,” said Nederland Town Administration Jon Cain in a meeting with trustees on Nov. 19.
Powdr has not disclosed a price tag for Eldora but Nederland officials estimate they would need to raise somewhere between $100 million and $200 million to buy the ski area, which opened in 1962 near the former mining town of Eldora. Arapahoe Basin, which is twice as large as Eldora, sold last week to Alterra Mountain Co. for $105 million.
That’s a big bite for a small town.
Nederland officials have yet to formulate a financial analysis of a potential bid and the cost of operating a ski resort but they are in contact with Powdr and hope to make the second round of bidding that will allow the town to review the resort’s financials. A source with an investor group interested in acquiring Eldora told The Colorado Sun that Powdr rejected their initial bid below $100 million and the group did not advance to the next stage of review. A Powdr spokeswoman declined to comment on the sale process.
“It’s not our first choice to take on debt,” Nederland Mayor Pro Tem Nichole Sterling said during the trustees meeting. “But the (funding) vehicles as a public entity are different than the private sector. We will consider anything.”
There are several ski areas owned by local governments in Colorado. Durango opened its seven-acre Chapman Hill in 1966. That same year, Gunnison opened the previously privately-owned, four-run Cranor Hill. Steamboat Springs took over its downtown Howelsen Hill in 1937. Silverton revived its dormant 35-acre Kendall Mountain — which first hosted skiers in 1963 but closed in 1982 — in the 1990s. Lake City opened its Lake City Ski Hill in 1966 but it was closed for 24 years before reopening in 1998. The tiny, free Lee’s Ski Hill in Ouray opened in the late 1940s. A nonprofit Lake County recreation board inked a 99-year lease to run Ski Cooper in 1942 after the Forest Service bought the former 10th Mountain Division training area from the military after World War II. And of course, the city of Denver opened Winter Park ski area in 1940.
Winter Park is now managed by Alterra Mountain Co. in a deal that seems to be a sort of model for Nederland. Except Denver did not pay more than $100 million for the 3,081-acre Winter Park before negotiating a long-term deal that returns a chunk of annual revenue collected by Alterra back to the city. In 2023, Alterra Mountain Co. delivered a record $5.36 million to the city, which includes a $3.4 million payment based on 3% of gross revenues above $33 million and the required annual $2 million lease payment. (That revenue-based payment indicates Alterra grossed a record $145 million running the city-owned ski area in 2023.)
Early plans call for Nederland partnering with a private operator to run the ski area. Money for the purchase could come from crowdfunding, sponsorships, philanthropy, impact investors and federal and state grants that “have the potential to help us raise tens of millions of dollars,” reads an online document outlining the town’s interest in acquiring Eldora.
Powdr earlier this year inked a deal to sell its Killington and Pico ski areas in Vermont to local investors. The company also is selling SilverStar Mountain Resort in British Columbia and Mt. Bachelor in Oregon as part of a business shift to focus on national park concessions contracts and its year-round Woodward Experiences athletic camps. A group of locals in Bend, Oregon, near Mt. Bachelor, has formed a for-profit community organization to bid on that ski area, estimating it needs $150 million to bid for the 4,300-acre ski area.
Cain, in an interview, said he has looked at the community group in Bend, the cooperative that owns Mad River Glen in Vermont, the Steamboat Springs-owned Howelsen Hill and the long-term lease for Winter Park as inspiration for Nederland’s dream of owning a ski area.
A partnership with a private operator could deliver a new revenue stream to Nederland, much like the Winter Park deal funnels millions into Denver every year.
Nederland has spent several years cutting expenditures, and revenue flowing into the town has been flat for several years. For 2024, the town budgeted for $5.7 million in revenue, which is less than the previous year. The 2024 budget, for example, slashed spending on streets compared to 2022.
“We could build more affordable housing. We could offer Eldora employees the same free benefits as town employees. We could build better transit,” Cain said. “All these things we need around our town and region, this can help us. This is what we mean when we say we want to keep Nederland Nederland. We want community assets so we can work here, live here and play here.”
Cain said he’s received hundreds of calls from residents eager for the town to explore this opportunity. A steady stream of Nederland residents spoke Tuesday, expressing support and excitement for the potential of their town owning a ski area. They shared hopes for a community Nordic skiing program. Maybe the resort could host local ski racers and skiers from CU Boulder down the road. Trustees said the town could offer Eldora workers government benefits and develop a ski area that is friendly to locals and families.
The trustees will know more once they study Eldora’s finances. The privately held Powdr does not disclose the particulars of its resorts but the ski area’s revenue is certainly bolstered by a deal with Alterra Mountain Co. that allows for unlimited access for Ikon pass holders. That deal likely will change with a new owner.
Cain said Powdr and the company’s owner John Cumming have values that align with Nederland’s, including a focus on sustainability and recreation. Cain hopes Cumming hears the town’s argument for local ownership and makes a deal “that can continue the legacy he has built here.”
Bend, Oregon residents rally to buy Mt. Bachelor
A group of Bend locals formed Mt. Bachelor Community Inc. in an effort to buy the 4,300-acre ski area on a dormant volcano in Oregon’s Cascade Range.
The group has deep-pocketed investors that could help it bid the estimated $150 million to $200 million the group expects it will need to acquire Mt. Bachelor.
The plan in Bend involves a B Corp certification — a for-profit designation for companies that serve a public benefit with high standards for environmental and social impact — for the community group.
The group is exploring unique fundraising models outlined in the 2012 Jumpstart Our Business Startups federal legislation — known as the JOBS Act — that would enable the group to sell public shares of the ski area to local residents who could get discounts on season passes.
The group has heard from Powdr that “there is a lot of competition” for Mt. Bachelor, said Chris Porter, a co-founder of the Mt. Bachelor Community group. He said the group plans to have full funding and a “highly competitive” offer submitted to Powdr by year’s end.
The group is racing to put all the pieces together and offer a premium price above expected bids from skiing heavyweights. Local residents have come out in force to support the local bid, revealing, Porter said, a surging interest in locally controlled ski hills.
“This has so much enthusiasm,” Porter said. “We figured out a model that works with creative fundraising. Yes we could have some big owners, but the community will own the heart and soul of the ski area. I think Nederland has a good shot at this, especially with some of the creative funding opportunities available to cities and towns right now.”
Cain knows this is a long shot for Nederland. He called it “a calculated risk.”
But regardless of how the sale process ends, Cain sees benefits. The community has rallied around the idea.
“The whole locally-owned ski area thing has really hit a nerve. This is Nederland living up to its legacy, from the miners to the hippies to the music scene. We have such a rich history here,” Cain said. “We are coloring outside the lines. We may not get this, but even if we don’t, whoever comes in will know right there they are in a place that cares very deeply.”