The town of Nederland has bought the Eldora Ski Resort up the mountain from Boulder for $120 million. The seller, Powdr Corp., will remain for two years to assist with hiring, IT systems, marketing, and capital planning.

The Denver Business Journal reports the town will pay Powdr $1 million per year. After two years, 303 Ski, an organization led by ski industry veterans, will step in to support the town’s resort operations.

Under the agreements, the town will buy the resort’s property along with water rights, land, intellectual property and licenses and has also agreed to repay Powdr’s remaining Eldora-related debts and seller expenses. The town plans to use bonds to fund the acquisition.

Eldora should generate $2 million to $5 million in free cash flow annually. The town plans to use that cash flow to build a $10 million reserve that would be available in years the resort brings in less revenue than expected.