Six months after Eldora Mountain Resort was put up for sale, officials of the Boulder County ski area and the town of Nederland remain mum about the sale process, with Nederland town administrator Jonathan Cain saying he is restricted in what he can say due to a non-disclosure agreement.
Eldora’s owner, Utah-based Powdr, announced in August that it was putting Eldora and two other ski areas up for sale with JP Morgan Chase “managing” the sale. The town of Nederland emerged as a potential buyer in November when Cain said he believed there was a “plausible path forward” for the town to acquire the 62-year-old ski area.
All Cain is willing to add now is that the town has identified a financial “structure” utilizing an enterprise fund that would offer a way for it to finance a purchase — if its offer is accepted.
“I can tell you we are serious, and we have figured out structurally how we can do this,” Cain said this week. “If we’re given the opportunity, I think it would be really cool to preserve a really important piece of Colorado ski history. There is a path forward that the town has identified, and that path is an enterprise fund.”
Powdr’s vice president of communications, Stacey Hutchinson, reiterated this week that the company has nothing to add beyond what it announced in August.
Nederland expects the sale price will fall somewhere between $100 million and $200 million. An updated FAQ document posted last month on the town’s website reveals that it has been invited to complete “due diligence” regarding the sale and to submit a “final offer.” The FAQ also explains how an enterprise fund could be used by the town to finance a purchase using revenue bonds.
“That’s a way to purchase an asset for a town or municipality that doesn’t use taxpayer dollars,” Cain explained this week. “It just uses the revenue from the business to do it. It’s used for things like golf courses or utilities, water and sewer, as a fee-based service. It’s a really good opportunity for a town like Nederland to do something like this.”
The FAQ says enterprise fund bonds would provide enough financing to purchase Eldora and continue to invest in it.
“An enterprise fund is a financial structure used by municipalities to account for activities that are primarily supported by their own revenue, such as utilities or recreational facilities,” the FAQ explains. “In this case, the fund would manage all revenue and expenses associated with Eldora’s operations.” By using an enterprise fund, the FAQ adds, “financial activities related to Eldora would be completely separated from the town’s general fund and overall operations.”
Eldora general manager Brent Tregaskis assured Eldora skiers after the sale announcement last summer that there was “no cause for alarm” in an open letter.
“While a new owner has yet to be identified, I am very optimistic that the next stewards of this special place will inject excitement and a new wave of capital investment,” Tregaskis wrote. “Eldora is profitable — with strong visitation, an amazing community of staff and guests, and great potential — and should be a very attractive purchase.”
