Last week, news broke that the tiny town of Nederland may be considering the purchase of nearby Eldora Mountain Resort, long known for attracting Front Range winter slopesport enthusiasts looking to skip I-70 traffic to instead enjoy the 600-plus acres of skiable terrain at this local spot instead. After all, winter sports company POWDR is looking for a new owner of the spot, meaning that big changes are likely on the way regardless of who ends up acquiring the destination.

The Town of Nederland addressed rumors about their potential purchase head-on, answering big questions related to the move in a social media post on Facebook.

A key reason behind the town’s potential purchase of the destination would be further expanding mountain activities to provide new community-focused events, as well as providing a means of stimulating economic growth.

“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, as well as summer events,” reads a statement from Nederland. “It also provides an incentive to encourage the development of complementary industries within the town, such as hospitality and outdoor recreation services. […] As part of owning the ski mountain, the town would emphasize environmental sustainability and social equity, including affordable access for locals and workforce housing.”

As far as how paying for the ski area would go, Nederland noted that several options have potential, and that the town is “currently building a coalition of supporters, investors, and partners to help […] create a responsible capital stack.” This could include grants, public-private partnerships, crowdfunding and sponsorships, and philanthropists.

The town also addressed risks associated with such a large purchase from legal to financial to operational, with most ideas related to hedging the financial concerns related to diversifying revenue streams produced by the ski area, while also sharing some of the financial risk with private entities that are involved.

The financial aspect remains a major factor in the decision-making process, with Nederland noting that the expected sale price would likely fall between $100 million and $200 million based on recent sales of other similar resorts. Meanwhile, the town continues to conduct a review of the resort’s financial statements as they related to financial health, sustainability, and profitability. The town would aim for the purchase to not result in additional debt thanks to an effective funding plan.

Nederland made it clear that no decisions have been made related to the purchase yet, with the process still in its exploratory phase. No agreements or contracts related to a potential purchase exist. As the process moves along, the community will be involved, including at public meetings, participatory budgeting, and a possible citizen advisory committee.

Find a full statement from the town here.