Industry News
There might be a shift in the ski industry, with resorts staying independent and locally owned. Early this Fall, Killington, Vermont, was purchased by a group of local investors. This move saw a big-time mountain return to its roots and heritage. The very popular Indy Pass also has increased the stoke with smaller-independently owned resorts by making it quite affordable to visit many resorts on a single pass. Now, the Town of Nederland is considering the acquisition of Eldora Ski Mountain to foster new community-centric benefits, including improved local recreational opportunities, economic growth, and sustainability.
The acquisition would enable the town to control the use of the mountain area for activities beyond the current winter sports, such as concerts, night skiing, and summer events. It also provides an incentive to encourage the development of complementary industries within the town, such as hospitality and outdoor recreation services, and to potentially encourage related outdoor recreation businesses, such as outdoor product manufacturing. As part of owning the ski mountain, the town would emphasize environmental sustainability and social equity, including affordable access for locals and workforce housing. The town will investigate all funding mechanisms for the acquisition of Eldora Mountain. However, its intent is to prioritize funding that does not incur debt.
In a press release, the Town of Nederland stated one key caveat: “However, to be clear, no decisions have been made and we are working through a process. There are currently no agreements or contracts between the Town of Nederland and POWDR, the owners of Eldora.”
According to the press release, the Town of Nederland’s ownership of Eldora Ski Mountain offers several benefits to the public and staff. One of the benefits of The Town of Nederland’s purchasing Eldora Ski Mountain is that it can differentiate it from the corporate ski areas by making Eldora a locally owned, community-centric “locals” mountain that serves its broader community while welcoming visitors. It would also offer a new source of revenue for the town for local business growth. The town could integrate workforce housing development into the acquisition plan, addressing one of the critical challenges Eldora employees and the community face. This could lead to affordable housing solutions that benefit resort employees and residents.
The press release also states that by owning Eldora, Nederland would be positioned to consider improving year-round access to the mountain. Nederland will fully consider and weigh the impacts of such an option and ensure that it aligns with community goals. Some of Eldora’s profits would be reinvested into local community projects, improving infrastructure, public services, and recreational amenities.
A ski resort is not a small investment; it is also a business that heavily relies on the weather for its success. To help mitigate this, the town is exploring investments in more renewable energy for resort operations and securing essential snowmaking resources to improve snowmaking systems. At the same time, the town and ski area would also pursue activities beyond winter sports, including mountain biking, concerts, and summer events.
The Town of Nederland is considering several funding mechanisms for the Eldora acquisition. It is building a coalition of supporters, investors, and partners to help create a responsible capital stack. Nederland is also pursuing various federal and state grants for economic development, environmental conservation, rural infrastructure, and workforce development. The town hopes these grants can help raise tens of millions of dollars. The town said in the press release that it will fully assess all these risks before proceeding with any plans or agreements.
Determining Eldora Mountain Resort’s profitability is crucial in the town’s evaluation process. Nederland is reviewing the resort’s financial statements to assess its financial health and sustainability. This will be key to the decision-making as it considers potential actions regarding the acquisition of the resort. Based on sales of other mountains, Nederland expects the cost to be around $100 million to $200 million.
Nederland admits that it lacks the staff or qualified personnel to run a ski resort properly at this time. To mitigate this risk, the town plans to partner with a private entity or entities experienced in managing ski resorts. In exchange for providing capital, the private partner(s) might share in the profits or be given a management contract. One option would be to retain the current Eldora resort management team. The current plan is for the town to outsource management to a private company with ski resort experience, allowing Nederland to retain ownership while delegating operational responsibilities. The town envisions Eldora as a locally owned, community-focused, and sustainable destination.
Mayor Billy, Mayor Pro Tem Sterling, Town Manager Jon Cain, and Town Attorney Jennifer Madsen have been the primary contacts for conversations with the parties involved in Eldora’s sale. They have also been the communication bridge to the Board of Trustees, and the town expects that to expand as the process moves forward. The town manager, Jon Cain, will be the main point of contact between the community and investors. At this time, the town is putting together a coalition of supporters, investors, and partners to show POWDR that Nederland is willing and able to become Eldora’s new future. Nederland’s idea for Eldora is for a sustainably driven, locally owned, and community-centered mountain resort.
