Nederland is on track to purchase Eldora ski resort, a move that could bring in millions of dollars to the town about 16 miles west of Boulder.

The town announced on Tuesday that it signed a letter of intent for the purchase. Essentially, this development lays out a set of rules that both parties agree to follow as the final purchase is negotiated. Nederland said the transaction could be finalized by October if all goes smoothly. Nederland would purchase Eldora from POWDR, a Utah company that acquired the ski resort in 2016.

Nederland plans to annex the mountain, which allows it to control land use and collect sales tax, which could bring in as much as $2 million in annual revenue for the town’s general fund, according to the town. Nederland projects that, once the debt is paid off, free cash flow could exceed $5 million.

To pay for Eldora, the closest ski resort to Denver and about 21 miles from Boulder, Nederland said it “will issue municipal revenue bonds backed only by the resort’s earnings, which is profitable enough to service the debt,” according to a news release.

“The Eldora team is truly excited about the future and the opportunities this new partnership with the Town of Nederland will bring,” an Eldora spokesperson said in a statement to the Daily Camera.

On its website, the town said the exact sale price will remain confidential. The town added, though, that its Board of Trustees must approve a “not-to-exceed bond amount that covers the acquisition” plus the consultants and advisers needed to finalize the purchase. The trustees will consider that resolution in “the coming weeks,” the town said.

Nederland hopes to pay off subordinate bonds within 10 years, a timeline it says could be accelerated through grants and donations.

The town said that POWDR will “continue to support” Eldora for the first two winters and summers during the transition. All current Eldora staff will become Nederland employees, which the town estimates will add about 700 people to its municipal staff. That’s nearly half of Nederland’s roughly 1,500-person population.

Once POWDR’s contract expires, 303 Ski will support the mountain. 303 Ski is a corporation that registered with the Colorado Secretary of State’s office in October of 2024. Dwight DeBroux, the founder of 303 Ski, is a Boulder resident who was the senior manager of Vail Resorts from 2016 to 2020. DeBroux owns Ned General and the Gold Hill General Store in Nederland.

Nederland will also create a new position, “deputy town manager, executive director of mountain operations,” to work with the mountain and town government.

POWDR announced in August of last year that Eldora was up for sale. Talks with Nederland began last fall and accelerated this year. Eldora will stay on the Ikon pass, as well.

Nederland said it believes it can build a reserve of $10 million in the first couple of years of ownership. That would go into an enterprise fund that acts as a cushion to pay off debt if Eldora has a bad snow year.

“Our vision is to build on Eldora’s legacy and create a community-driven, sustainable, and year-round destination that supports local jobs, outdoor industries, and infrastructure development,” Nederland Mayor Billy Giblin said in the news release.