POWDR Sells Eldora to the Town of Nederland

[thetrailboss]

First Killington, then Bachelor (and taken off the market), now Eldora is off of POWDR’s books. The local town has bought the resort for an undisclosed amount.

Colorado Town Buys Ski Resort From Corporate Ownership

Eldora Mountain was just purchased by the town of Nederland, with a population of just 1,500. Here's everything we know about the deal.

www.skimag.com

Town of Nederland, Colorado to Buy Eldora

The Colorado town located closest to unincorporated Eldora Mountain Resort plans to purchase the mountain from Powdr Corporation by October. A signed term sheet comes after months of negotiation an…

liftblog.com

 

[jimk]

I actually skied Eldora for two days about 20 years ago. Had a fun time. For challenge (1600' vert) and variety (680 acres), it would rate pretty well against the terrain of many of New England's ski areas. If it was in the Mid-Atlantic it would be the biggest and best ski area south of NY state.

Most municipally owned ski areas seem to have mediocre to below-mediocre track records. Hope things work out for Eldora to continue as a good second tier Colorado mountain.

 

[djd66]

My son goes to CU Boulder and skis there all the time,... its about a 30 minute bus ride from campus. Its very popular for CU students to ski there. Its good that it will remain on Ikon.

 

[jaytrem]

Been there a few times. Weekday powder lasted pretty much all day. That was quite a while ago though. Also a good place to go on Sat to avoid the I-70 traffic. Lift line were not bad at all, that was just before covid hit, so 2020. Worked out real well, drove to Copper after skiing, smooth sailing.

 

[ctdubl07]

While this is a big local near-term win, long term the jury will be very much out.
Im not familiar with how tax revenue in CO is allocated for municipal use: roads, wastewater, schools, police, etc but say 15 yrs down the road you need a major lift upgrade conservatively at $15M. Same time you've had 2 poor weather years drawing down on the reserves. Couple that with a change in Town Board governance (sentiment) and a $120M retrofit of their high school and that mtn is pushed aside to rot with further decisons to delay maintenance which only drives up future maintaince liabilities/costs.

Its a spiral they will never recovery from unless Taxes can always be raised for needs/shortfalls because you know they'll be pressured to keep tix prices "affordable". Longterm, competency of workforce, lift investment and quality hamburgers in the cafe will suffer. Once all the flag-wavers and drivers of the current energy to buy it are dead and gone, ownership will become a very contentious issue. Munis should never own high cash flow intensive recreational assets where the debate will rage on forever over the question "Is it a revenue generating operation? or a recreational asset?" that in great years, can build a reserves which can be drawn from if needed for other municipal obligations or is it a liability we have to subsidize no matter the cost when its financial performance is less than optimal from weather, visitor economics, project capital needs, etc. Yeah, Im sure that everybody is saying the right thing today liek "we've got governing structure that keeps things financially separate but dont worry, they'll be a time when local governance sentiment changes and theres a conflicting need for monies or zero tolerance for subsidization and you can bet the governing charter is reformed and the war is on. That thing will be a lead anchor on that town neck in 30 yrs.

 

[Edd]

While this is a big local near-term win, long term the jury will be very much out.
Im not familiar with how tax revenue in CO is allocated for municipal use: roads, wastewater, schools, police, etc but say 15 yrs down the road you need a major lift upgrade conservatively at $15M. Same time you've had 2 poor weather years drawing down on the reserves. Couple that with a change in Town Board governance (sentiment) and a $120M retrofit of their high school and that mtn is pushed aside to rot with further decisons to delay maintenance which only drives up future maintaince liabilities/costs.

Its a spiral they will never recovery from unless Taxes can always be raised for needs/shortfalls because you know they'll be pressured to keep tix prices "affordable". Longterm, competency of workforce, lift investment and quality hamburgers in the cafe will suffer. Once all the flag-wavers and drivers of the current energy to buy it are dead and gone, ownership will become a very contentious issue. Munis should never own high cash flow intensive recreational assets where the debate will rage on forever over the question "Is it a revenue generating operation? or a recreational asset?" that in great years, can build a reserves which can be drawn from if needed for other municipal obligations or is it a liability we have to subsidize no matter the cost when its financial performance is less than optimal from weather, visitor economics, project capital needs, etc. Yeah, Im sure that everybody is saying the right thing today liek "we've got governing structure that keeps things financially separate but dont worry, they'll be a time when local governance sentiment changes and theres a conflicting need for monies or zero tolerance for subsidization and you can bet the governing charter is reformed and the war is on. That thing will be a lead anchor on that town neck in 30 yrs.

Buzzkill, Jesus.

 

[ctdubl07]

Its very possible I am wrong but I have some local experience....spending 8 years to an elected town governance board (nonpaid). We are a "wealthy" town that prioritizes education and services. We have a large rec complex that includes a golf course and a separate town property with a performing arts center. I am a huge supporter of both because I can afford the tax consequence that comes with subsidizing them when called upon because neither ever "pay" for themselves. But we also have a growing population of Sr's who cannot afford tax increases and a non affluent subset of our population that does not utilize either property and wants and always wants education addressed. There were grand plans for long term support when each was built, in high grandlist and reserve days. But we face a rolling $50M in capital education projects plus a high level of town service expectations. This results in significant debt service and annual tax increases. Every so many years, we re-jigger operating accounts and charter "interpretation" to keep in front of things. Its a cross between a shell game and a negotiation on pawn stars. I do not believe municipalities that take in taxpayer $'s, should be in the entertainment business....